Trading the Trend with Strong Weak Analysis

EURAUD has closed for the 13th straight day inside this tiny 120 pip range, The closes thing to a trade signal came on today’s false breakout pin bar reversal. With US stocks looking like they might move higher buying Aussie and matching it to a weakening Euro might not be a bad idea

Here is another great example of how pullbacks to the 200 moving average on the 1hr chart make for great entry points

Another good day for the Pound, followed closely by the CAD

markets are pulling back and consolidating, good time to plan your entry points for when trends resume

Here is another great example of pullback to 200 ma on 1hr chart, price rejected the moving average, moved sideways for awhile and is now moving lower, I am short this pair

AUDUSD 1hr chart w/ 200 moving average

EURUSD did not make it all the way back to the 200 ma, but it got close and gave a very tradable pin bar reversal, I am short this pair

EURUSD 1hr chart with 200 ma

Here is my weekly look at market trends, S&P looks ready to break to new all time highs, while gold continues it’s 4 week pull back, We still see a strong Dollar and Pound as Euro and Aussie remain weak, maybe some life for the CAD as it ended it’s 3 week loosing streak

Yen weak across the board, this could mean a good week for US stocks

EURUSD pulled back and rejected the 200 ma on 1 hr chart , this would had been a great entry point for the day trader.

On the flip side, in the AUDUSD, price sliced right through the 200 ma, if you had shorted at the 200 ma you would had been as much as 60 pips down before price reversed.

May trading comes to a close and we have markets tightening up, now is time to patiently watch and wait for those reversal candles as prices pull back to support/resistance

Look out , here comes the Yen again, Yen is still strongest currency year to date, I would not bet against it

EURAUD Pin bar reversal off of strong support and 200 ma. if price can get above that grey consolidation box a move to 1.6000 is possible. EURUSD and AUDUSD all have price bouncing of the 200 ma

EURAUD daily chart

I warned you Yen was on the move and here it is back at #1.

what looked like a nice follow through after a pin bar really fizzled out taking back most of gains from my 4 am post. The pin bar entry is still valid and the strong support that made this a good trade is still there so I am going to stick with this one, another test of the 200 ma is possible

As expected price has bounced off of the 200 dma only to find strong overhead resistance at 1.1220, nothing has changed, the down trend that started May 3rd on a daily pin bar reversal remains the dominate trend, With price sitting in between strong support/resistance, nothing to do here but wait to see which side wins

Note; 200 day moving average crosses do not happen very often, and price can stay above or below this moving average for many months and move 1000’s of pips from the cross point, So catching a 200 ma crossing can make your trading year

Dennis, can you share your currency strenght meter? Thanks!

Big miss for NFP 38K actual vs. 159K expected. So this takes interest rate hikes off the table again. Result is sell off in USD. Here is EURUSD weekly, if this weekly candle holds then the US dollar bears will be in control

Here is link to my other thread, at post #189 I have a how to video for making my Strong weak ranking

http://forums.babypips.com/trade-journals/77569-trading-trend-strong-weak-analysis-19.html

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A weak dollar is good for Gold, My preferred way to play gold is the Gold Miners index, Huge weekly candle, if this holds then the 4 week pullback in metals should be over