Next up, shorting GBPUSD. This trade is slightly trickier, as there are 2 possible scenarios for this pair. Though both scenarios are still short trades.
Scenario 1
SHORT GBPUSD around 1.5480-5500
Stop loss 20-30pips
Final target profit 1.5300
Scenario 2
SHORT GBPUSD around 1.5540-60
Stop loss 30-40pips
Final target profit 1.5300
So GBP will keep falling in the coming days…
Should have looked for another currency pair…
Nothing is 100% certain in trading. Have to learn to play with the probabilities.
Review 1 - SHORT GBPUSD
In my trade previews, i posted a potential setup to short GBPUSD. According to scenario 2, there is a strong resistance zone from 1.5540-60. See post #21.
I plan my trade, and trade my plan. I went SHORT GBPUSD @ 1.5560 on 11th July Wed, in accordance to my pre-identified resistance zone.
Review 2 - LONG NZDUSD
This trade is one of my bad trades. It is a bad trade because i traded with my gut. I went in because i expected NZDUSD to rebound up. I did not follow my trading indicators. This is a well deserved loss and i gain valuable experience. Trading is a mind game. Repeat the good stuffs, learn from and avoid the bad stuffs.
Preview 1 - SHORT EURJPY
I have identified another long term resistance zone on the EURJPY. This resistance zone is from 98.30-50. When it retraces to this level, i will looking on the intraday charts for a good opportunity to go short.
SHORT EURJPY 98.30-50
Stop loss above 98.80
Final target profit 95.50-00
Preview 2 - SHORT GBPAUD
For this month of July, GBPAUD has been unable to break above the resistance zone of 1.5270-00. Will it continue to stay below this level? If it does, go short.
SHORT GBPAUD 1.5270-00
Stop loss above 1.5340
Final target profit 1.5000
From the 4hr chart, it is in a clear 1000pips downtrend.
Preview 3 - SHORT NZDUSD
On the daily chart, we see 4 lower highs and a downtrend line.
On the 4hr chart, there is a potential forming of a head & shoulders pattern. In classical technical analysis, a head & shoulders pattern is consider as a bearish reversal pattern. If this pattern is formed, find a suitable price to go short. However, if price breaks above 80.60, this pattern will be invalidated.
I am looking to LONG USDCAD today if it touches my entry price. See my post #3 below on 20th June.
Have this same trade pending in my account. Have my entry at 1.0064. Just missed my entry today by 1 pip!
This week is a good week for me. I made a number of green pips. If you had followed my trading call to SHORT GBPAUD posted on the weekend, you would have made more than +200pips easily with minimum risk. A high reward, low risk trade.
See post #26 for details.
The SHORT GBPAUD trade was filled on 16th July monday. And as of 20th July friday, i am still holding the remaining 33% of my position. Let the profits run!
EURUSD has been in a 200pips sideways consolidation for the past 2 weeks.
For this week, i was trading the range and i did 2 trades. One was to attempt to long at the bottom of the range. The other was to try to short at the top of the range.
TRADE #1
The result for longing at the bottom was a loss. Although the trade was filled quite close to the bottom, and my stop loss was triggered 14pips away from the bottom.
TRADE #2
The short at the top was a moderate win. I shorted almost at the exact top for that day, which was only 10pips away from that day’s high. This is a low risk, high reward trade. I am still holding onto the remaining 33% of my position for next week. Got to let my profits run!
I think USDCAD may come down again for us to re-enter. I wish you better luck next time. 
EURUSD has been consolidating in a 180pips sideways range for 2 weeks from 09-20th July. For these past 2 weeks, it has given the big operators ample time to re-adjust their positions. More importantly, i believe these big operators have been re-accumulating their short positions. Therefore, I think they are just about ready to push EURUSD downwards. I have highlighted 2 possible scenarios to short EURUSD.
Scenario #1
SHORT EURUSD @ 1.2210-30
Stop loss 30pips
Final target profit 1.2000
Scenario #2
SHORT EURUSD @ 1.2290-2320
Stop loss 30pips
Final target profit 1.2000
Preview #2 - LONG AUDUSD
AUDUSD is found within a rising channel since the beginning of June 2012. And it has been in a very strong uptrend. Since the trend is our friend, we should go long only when trading this pair. The chart below is one of my trading indicators which i used. It shows the percentage change of the top 10 strongest and weakest currency pairs.
LONG AUDUSD @ 1.0210-30
Stop loss 30pips
Final target profit 1.0800
Hi there, may i know where i could get the currency strength indicator you used?
thanks.
Here it is. I hope you find this indicator useful as it is for me. If you need help, i can help you. Feel free to ask. :21:
Thank you! That has certainly been useful!
Thanks. It definitely helps to identify the strongest and weakest pairs with ease.
EURUSD
This week was a tough week. Especially the movement of EURUSD on friday, which was highly volatile. I was caught on the wrong side of EURUSD and manage to escape with a slight loss. Proper money management saved the day.
AUDUSD
Another frustrating trade to LONG AUDUSD. I was stopped out 20pips away from this week’s bottom, which was printed on 24th July tuesday. By friday’s closing time, it went up +230pips.
Preview #1 - SHORT EURUSD
First up, shorting EURUSD. Once again the long term resistance zone of 1.2410-30, which I posted previously 3 weeks ago is back into view. See link. Will EURUSD hold below resistance or break through this resistance zone?
Forex Mind Games: WEEK 28 (09-13 JULY) TRADE PREVIEWS PART 1
SHORT EURUSD @ 1.2410-30
Stop loss above 1.2450
Final target profit 1.2060
Preview #2 - GBPUSD LONG TERM PIVOT ZONE
Like the EURUSD mentioned above, this long term resistance zone of 1.5780-00 is also back in play. See link.
Forex Mind Games: WEEK 25 (18-25 JUNE) TRADE PREVIEWS
There are 2 possible scenarios for this trade. First up, if resistance zone holds again, we go short.
Scenario #1 - if resistance zone holds below 1.5780-00
SHORT GBPUSD @ 1.5780-00
Stop loss above 1.5820
Final target profit 1.5300
Scenario #2 - if resistance zone is broken to the upside
LONG GBPUSD @ 1.5800-20
Stop loss below 1.5780
Final target profit 1.6000
What a volatile week this was for EURUSD. After last week’s “Believe me, we will do everything to save euro” heroic speech by ECB president Mario Draghi, the market was expecting some concrete plans to surface during thursday press conference. Instead Super Mario failed to save the princess euro. He disappeared down into a green tunnel.
EURUSD went up 180pips. It was bullish for the whole day on thursday as the market expected Super Mario to throw fireballs to save princess euro. That is right until Super Mario blurted out something about “we are still planning to have a plan to save euro” during the press conference All hell break loose after this. EURUSD reversed its uptrend and plunges 270pips!
EURUSD went up to the resistance zone of 1.2400, as i mentioned in my previous weekly trade previews.
Forex Mind Games: WEEK 31 (30 JULY - 03 AUG) TRADE PREVIEWS
After touching 1.2400, it plummeted to 1.2130 in 4 hours. Sometimes, the best trades are the simplest trades. Identifying strong support and resistance zones may not sound sophisticated and sexy. As compared to today’s automatic trading robots and complicated mathematical indicators. But hey, support and resistance has worked for the past 100 years. And it will surely continue to work just as well in the next 100. Learn it well. It may turn us into a more consistently profitable trader.
