Cleopiptra

The “momentum” set up is one that capitalizes on a more neutral market opinion and therefore it’s the MOMENTUM that we’re waiting on. It reveals itself by moving higher through resistance or lower through support – but the key is to wait for these moves from a non-trending market phase.

The loonie has been losing ground against the U.S. Dollar as the 0.9522 low seems to have stirred awake USD/CAD bulls. Crude oil has stagnated below 110/bbl and this could be fueling some of the loonie pessimism but the case for bullish greenback cannot be made here and that’s why I see a push lower…resuming the overall downtrend.

The downtrend and bearish Directional Bias on the daily USD/CHF has completed a transition into a sideways, consolidation phase…but bears don’t lose faith and bulls, don’t get too excited; There is still downtrend line resistance and 0.9300 to contend with.

“If foreign exchange is the “wild west” of trading, then forex traders are the cowboys. Forex traders are typically comfortable with a high degree of risk, lots of sleepless nights, caffeine, and constantly-blinking computer screens – but what other substantive qualities do they have in common?”

The idea of seven keys that I consider as well as a “triage” process are part of my every day trading thought process.The following video explains how and why I use these keys and how they can help you make more informed trading decision too.

…chart patterns develop and even trigger entries that are not necessarily appropriate/valid for the market trend for that the chart.

Here’s a look at my USD/CHF daily swing short and the levels I am watching.

The break higher in the EUR/USD has carried the pair to 1.4250 where psychological level resistance at the “50” pip has pushed price lower and broken the uptrend line support of the Rising Wedge pattern.

The GBP/USD has traded lower today as the U.S. Dollar rallied slightly higher, but is still in a downtrend. The dollar managed to reach the and trade slightly above 77.00 to a 77.13 high before losing footing above the major psychological level. In the meanwhile, the GBP/USD trades around 1.6000.

I will admit that the more toppy prices get, the riskier this swing entry becomes, therefore I am being more aggressive about my stop-loss placement in case sentiment begins to shift lower, especially with the MPC Rate Statement coming Thursday.