Confessions of a Forex Trader

Hope you all had a merry Christmas with your loved ones.

After taking a few days off (and hope you did too) I’m back to trade the FX market. I see that the market didn’t move that much, just a few pips here and there.

I see most pairs are trading near long term important levels therefore we need to wait for the market to confirm either a breakout or rejection of such levels. However, a few of them are trading in a clear market condition, one of them is the Australian Dollar.

The AUDUSD is trading in a bullish market condition, it broke the short term resistance level during in the Asian opening, setting it up for a bullish market condition:

AUDUSD

My Trading Plan:

As long as the AUDUSD trades above 0.8829 I will look for long trade opportunities. My next LT resistance level is at 0.9100

All short opportunities will be ignored.

Trade Safe!
Raul Lopez

Most pairs are trading near or at an important long term level, on those pairs we need to wait for further confirmation before looking for a trade opportunity, so… patience…

One of the few trade opportunities today I think is on the AUDUSD. It is trading in a long term range, in between 0.9298 and 0.9025:

AUDUSD

It was rejected from the main support level, is it is expected that the market continues its way up until it reaches the next LT resistance level around 0.9298.

We got to be careful though, we could see a retracement in the short term charts to the 0.9113 level.

Here is my trading plan for the AUDUSD:

As long as the market continues to trade above 0.9113 I will be looking for long trade opportunities. My next LT resistance level is at 0.9296.

All short opportunities will be ignored.

Trade Safe
Raul Lopez

On Tuesday we talked about the AUDUSD, we mentioned that it was trading in a short term range in between 0.9363 and 0.9234 therefore the Australian dollar needed to break that range before starting to look for trade opportunities.

Well, its out of that range now, it broke through the bottom of the range and it is now in a bearish market condition, here is the chart:

AUDUSD

Since we are in a bearish market condition, we should only look for short trade opportunities.

Here is my trading plan:

As long as the Australian dollar continues to trade below 0.9234 I will be looking for short opportunities. My next long term support level is at 0.8950

All long opportunities will be ignored.

Trade Safe
Raul Lopez

The AUDUSD has been trading in a short term range since Monday, what is interesting is that the range is near a long term resistance level:

AUDUSD

This means that we need to wait for the market to break the range of 0.9234 – 0.9363 before we have a clear market condition.

Here is my trading plan:

If the AUDUSD breaks 0.9363 for the upside, I will start to look for long trade opportunities. The next long term resistance level is at 0.9517

If the Australian dollar breaks the 0.9234 for the downside, I will start to look for short trading opportunities. The next short term support level is at 0.8959

If the market continues to trade in the short term range, I will do nothing.

Trade Safe

Raul Lopez