Hi all, I am new here but not so new to trading. I am excited about sharing ideas in a community of fellow traders - it can be so lonely out there trying to take over the world :rolleyes:
Here are a couple of things I’ve been working the weekend on.
EUR/USD - This one is absolutely not sexy but is my type of low risk trade. When I look at the daily chart, we have a nice uptrend in place. The 4 - hour chart shows another nice uptrend so we are tading with both the daily and 4-hour time frames. If you trend line the 4 hour chart we are right at support at the dollar was left of the hook friday. This support is right at the trend line, depending how you draw it, around 1.3350 and we have another support from the breakout higher of 1.3370. I suggest a buy about ten pips lower that the close friday at around this 1.3370 level (the low friday was 1.3364). If we get this execution off then we can look forward to trying to get about 40 pips to the upside with no real trouble until 1.3410. We would just avoid the minor tussle at 1.3420 and above for now. If our 1.3370 drops, we can be saved by a trendline bounce at 1.3348, so we will just set a stop a 1.3340.
So in summary, we are risking 30 pips to make 40 - not sexy but not bad. They key is the discipline to get the execution we need for a nice risk/reward.
Next idea - this pesky USD/JPY
First off - if we even sniff 119.50 I’m going short. I’m just not buying this dollar strength argument yet. We might not even see that level though. I am very curoius how we open in Asia today. There is also a nasty little daily trend line pressing down at 119.84 that should control any upside break. There is a mountain of support at 118.50, so a short here (119.20) or so could have 50-60 pips in it. The neat thing about this trade is the 4-hour chart. Oh it looks so bullish, hopefully it will trap anyone who doesn’t check the daily. Also there are some key fib levels hit here at this level on the retracement so that is one more thing in our favor. On RSI, we also just moved into overbought.
My overall theme for the week is dollar weakness resumes. This will guide most of my trades.
Good luck out there!