Here are a few of the currency pairs I’m currently monitoring.
On some of them I’m already trading/looking for a trade opportunity, while on others, I need to wait for the market to do “something” before I start looking for a trade opportunity.
But there is something in common on all of them: CLARITY.
Clarity trumps everything in forex.
What do I mean by clarity?
It’s how clear the analysis of a currency pair is. Is it clear that the market will move up? or down? Or I have absolutely no idea of what the market is going to do?
Of course, if there is no clarity, there is no point on trading that particular currency pair, you have no idea of where it is heading right?
Clarity is so important when trading the forex market, that it can help you get good results even when you don’t have a good entry system, patience, etc.
Even if you don’t have a good entry system, if its clear that the market will continue its way up, even if you go long randomly, the market might favor you.
Even if you dont have patience, and enter your trade too soon, who knows, the market might favor you, because it has a higher chance of moving in one direction.
Of course, the ideal is to have a good entry system, patience, etc plus clarity when analyzing the market, I’m just trying to make my point here…
You see what I’m talking about? Do you agree with me?
Ok, now to my analysis:
The EURAUD broke the SF Box
The EURAUD just broke the bottom of the SF box, this means that the EURUAD just triggered a bearish market condition and it is likely to continue its way down, until it hits the next long term support level.
I have my next LT support level at 1.2360, which is more than 500 pips away from where it is currently trading at.
So as long as the EURAUD trades below 1.2932 I’ll be looking for short opportunities.
GBPUSD still has good downside potential
Last week I talked about the GBPUSD, it was in a very clear bearish condition. I even opened a trade, but had to close it because of the GBPUSD interest rate announcement.
I know I talked about the way I’m going to handle news announcements this year, but it was too close to my entry, and I also mentioned that when it is too close to my entry, the best thing to do when it is too close to your entry, is to close your trades.
Anyway, it is still in a bearish condition, and I’m still looking for short opportunities.
The next LT support level is at 1.5342.
The USDCHF looks good for longs
Its clear that the USDCHF got rejected from the bottom of the range and it is likely to continue its way up.
It is trading around an important ST support level at 0.9211. The next one is at 0.9151. I’d enter on both of these levels if I see enough upward pressure.
The next LT resistance level (where I’d set all my TP levels) is at 0.9363. It is currently trading at 0.9212, so we’ve still got around 250 pips before we get there.
AUDJPY waiting for a breakout
The AUDJPY is already trading in a very clear bullish market condition. Still, I’d like to see the AUDJPY break the top of the range (upper green level) before starting to look for long opportunities.
Patience is required to trade consistently buddy, that’s a fact. I rather wait and have a higher accuracy rate…
Whats your take?
What do you think about my open paragraph: CLARITY, do you agree with me that it is one of the most important factors in trading?
Now, about the trade opportunities that I mention, what do you think?
Are you trading something else? What other currency pairs are you monitoring?
Leave a comment.
Trackback from your site.