Picking profitable trades is only one half of the equation. Learn to manage your fund to minimise risk and maximise growth.
The EUR/USD has bounced this previous week, but as you can see on the charts - it looks like the previous support has offered just enough resistance to be effective. This pair looks bearish at best. The USD/CAD chart looks horribly weak, but there is the question of the 0.97 level and the hammer it produced last time the weekly chart got that low. The pair cannot be bought until we break free of the 1.0050 level, so we are waiting to see if weakness comes back into the market in order to sell - which is with the overall trend. NZD/USD looks set to settle into a range between 0.81 and 0.86 or so. This pair is highly sensitive to global risk and sentiment, so we could have choppy conditions ahead. AUD/USD looks very strong, although it is still in the recent range. However, a hammer that is a higher high than a recent other hammer - well....that can't be ignored at all. Play video >>
AUD/NZD fell again on the Friday session, but is showing extraordinary strength at the 1.25 area. In fact, the pair has done something you hardly ever see: form three hammers in a row. This is a very bullish sign indeed. EUR/AUD is looking bearish as the shooting star from Thursday got triggered to the downside on Friday. However, the 1.33 area is offering support, and has to be broken through in order to continue the march downwards to 1.30 or so. Play video >>
GBP/USD continues to sit at the absolute lows of a recent trading range in the neighborhood of 1.5750. The pair had broken below that, and even with stocks rising, this "risk on" pair couldn't get much of a bid. To us this screams that something is wrong with the pair and it looks weak. GBP/CHF has bounced from the SNB's floor of 1.37 yet again. While this pair cannot be shorted, (Unless you want to take on the Swiss National Bank) it can be bought on signs of a Pound bounce. If the GBP/USD rises - the real play might be over here. Play video >>
CAD/CHF has shot up like all other XXX/CHF pairs, but has fallen back against the last major resistance area that it cleared in the form of 0.88. The pair looks like it could run to the upside with a good global risk on environment, and while we don't expect miracles, this pair could be a good way to play risk taking globally. We certainly wouldn't be selling this pair! NZD/CAD is grinding lower, but approaching a massive level in the form of the 0.80 handle. The pair has been making wide ranges, but changing little at the daily close. Because of this, we feel quick buys on dips could be the way to play it, at least until we close below the 0.80 handle. Play video >>
EUR/USD shot straight up as it was announced that 5 central banks were going to provide dollar liquidity for the EU banks. This pair shot up quite rapidly, but fell slightly towards the NY afternoon. The 1.40 lies ahead, and we think this might be the area to watch for future direction. EUR/AUD also looks vulnerable at this point. The 1.35 area is pushing back as the resistance level could be too tough to overcome. (The pair is in a decided downtrend.) We like selling this pair, and a breaking of the lows on Thursday could be just the signal we are looking for. Play video >>
GBP/USD fell hard on Wednesday as it made fresh new lows. The resulting candle was a hammer though, and as such it looks like we might get a bounce. However, we feel that the 1.60 level could offer a ton of resistance and will cap any rise in price. EUR/GBP pair rose again, but is approaching the 0.88 level. This area has been absolutely massive for this market, and should offer some kind of resistance. Add to that the fact that the markets come undone every time a bad rumor comes out of the EU, and you have a recipe for a fall. We are currently waiting for weak price action. Play video >>
EUR/JPY has done something pairs very rarely do - form three hammers in a row, and all with higher lows. This could be a massively bullish signal for the short-term, and if we break to the upside - there is no real resistance until we get to 1.08 or so. However, it is worth keeping in mind this move would be counter trend. EUR/AUD rose on Wednesday, but is quickly approaching the 1.34 - 1.35 resistance area. The trend is down, and with the world ready to sell the Euro on any hint of bad news out of the EU - it makes sense that the resistance area could hold prices down. Play video >>
EUR/JPY printed a second hammer in a row on Tuesday as traders continue to provide support at the level. (Not to mention the rumors of clandestine buying operations from the BoJ.) The level looks solid, and could provide a buying opportunity if we get above the highs from Monday. However, this pair is massive bearish, and we believe the 108 level to be massive resistance and you should keep stops tight. A breaking of the lows of the hammer on Monday, this would signal severe bearishness. EUR/NZD is flirting around a support area and looks like it wants to fall. The breaking of the 1.67 level would signal a move down to 1.62 in short order, and would be consistent with the "sell the Euro" theme we are seeing out there now. The breaking of the top of the Monday candle would signal that perhaps we are going to retest the 1.70 level. Play video >>
USD/JPY fell a bit lower on Tuesday, and is now approaching the 76 handle. The closer we get to this level, the more interested we become in buying it. The level has held up nicely in recent times, and it seems that we are settling into a nice tight range. We are looking for a 50 pip gain. (or so.) USD/CAD continues to fall on Tuesday as the oil markets got a bid. The pair is also being held hostage to global risk, and the USD could get a bid anytime. With both of these factors in play, we feel the recent 200 pip range continues, and a scalping environment may continue. Play video >>
GBP/USD had an interesting day, as it looked weak for most of the session, only to pop in the late hours of the US session. There is a rumor that the Chinese are coming into Italy and buying bonds, and as such - risk on trades got a boost. We feel however, that this is a bull trap forming as their is plenty of resistance int he 1.60 area. The GBP/CHF pair normally follows risk appetite, and rises with a gain in risk taking environments. The pair fell on the session though, and with the SNB sitting below willing to intervene at will - the fact this pair fell shows us that the Pound might simply be weak, and somewhat confirms our suspicions about the GBP/USD forming a bull trap. Play video >>
Create a FREE account