Like the title of this blog suggests, making pips in the Forex is easier said than done. This "reality blog" will allow you to follow my life as a Forex trader. I'll not only discuss trades, but also my emotions during these trades. You'll see my ups and downs, my highs and lows, and my smiles and tears.
This is the true story of one man, picked to live in front of his computer screen and find ways to make money off the Foreign Exchange. See what happens when markets stop being polite, and start being real! The Dollar starts the week off on a strong note
Recapping the Majors
EUR/USD- The Euro picked up right where it left off last week and continued to fall even further against the Dollar. The pair had briefly paused at the 3500 mark but then proceeded to fall to its 50 EMA on the daily chart and got to as low as 3435 before shooting back up to around 3467. The Euro has fallin over the last week ever since it hit a high at 3600 on May 15th.
Result: The Euro continued to fall versus the Dollar again as it fell to around 3450 today.
GBP/USD- The Cable fell once again against the Dollar as it moved down to 9700 today. The pair has been slowly falling ever since it hit a 15 year high on April 17th at 2.0131. Since then the pair has fallen over 400 pips.
Result: The Sterling continued to plummet as it dropped down to 9700 today.
USD/CHF- Ever since the Dollar broke resistance at 2200, it has been surging against the Swissy. Today the pair surged past 2300 and got as high as 2331, hitting its 200 SMA on the daily chart before finally settling back down to 2300. Over the last few days, the Dollar has gained over 100 pips against the Swissy.
Result: The Dollar pushed higher against the Swissy as it rallied to 2300 today.
USD/JPY- The Dollar rallied against the Yen as it climbed from 121.00 to 121.50 today. The pair has steadily moving up after it hit a low at 115.14 on March 4th and has since moved over 600 pips higher.
Result: The Dollar made a small gain againt the Yen today but made a new high at 121.62 before settling back down to 121.50.
Chart Analysis: What's going to happen next?
EUR/USD
Well the Euro ended up falling to 3450 like I said it would last Thursday. Both 4hr and daily stochastics are still trending down and are not in oversold territory yet. However, the pair seems to have found support at its 50 EMA on the daily chart. The pair is currently trading around 3470 and I think we will see the pair to make another push down towards the 50 EMA at around 3450. Look for the pair to fall to that level and it may even drop further towards 3400.
GBP/USD
The Cable dropped to 9700 like I said it would last week and I hope you've been able to snag some profits. The pair actually dropped to as low as 9675 but then quickly shot back up. Daily stochastics are in oversold territory but have not crossed up yet and 4hr stochastics are also trending down. I think we may see the pair stay put for the meantime but it could drift slightly lower to 9650 where the 100 SMA on the daily chart is currently at.
USD/CHF
The Swissy did end up pushing through 2300 today but it found resistance at its 200 SMA on the daily chart. 4hr stochastics are trending down after just leaving overbought territory and daily stochastics are also in overbought territory. I think the resistance at the 2300 mark will hold and we should see the pair drop in the short term. Look for the Swissy to fall to its 100 SMA which is currently at 2265 or even the 2250 mark in the short term.
USD/JPY
Well I said last week that I thought the Dollar would have enough juice in its tank to rally to 121.50 against the Yen and so far that is what has taken place. However, I think it might be time to start taking profits and maybe look for short trades soon. Both 4hr and daily stochastics have crossed down and are in overbought territory which indicates a good possibilty of a drop in the short term. The pair is currently at 121.40 and I would watch for it to drop to around 121.00 some time tomorrow.
