There’s not much to update about the EUR/USD since nothing has really happened today. Expect to see more range bound movement until there is a major fundamental shift in the Euro or Dollar. Bernanke kept his lips sealed as there were not any hints whether or not rates will increase. We’ll have to wait and make our own judgments when more economic reports come out.
Today’s excitement comes from the Yen. I’ve been long the USD/JPY for a few days now from when I first noticed tight consolidation. After another couple of days of consolidation, the dollar gained more ground against the Yen today with a nice breakout. My original target was set at 117.71 (see my post a few days ago), and it looks as though my target may get hit. See the chart below. I marked the consolidation points followed by breakouts. When there is tight consolidation like that you can expect to see a breakout of some sorts, these are some of my favorite trades as usually the movements are swift and can earn you a decent amount of pips in a short amount of time. Currently I am up +111 pips per lot so I’m hoping nothing drastic happens over the weekend to hurt my trade.
Because of the lack of movement in the Euro, Alba didn’t produce any trades. We did have a slight breakout of the EU session low but it was due to the Bernanke speech candle so I didn’t trade it (I treat those like news reports). Following the speech, the Euro bounced up to the EU session high and settled back down leaving us with no trades. Alba for the week only made a slight profit with +32 pips from yesterday. I’m pretty happy with it since this week has been pretty uneventful.
I’m still pretty dry on trade ideas since all my charts still show consolidation but I will keep my eye out for anything that seems interesting. Hope you all have a great weekend!