AUDUSD update (exact level to trade)

Written by Raul Lopez on . Posted in Trades & Analysis

AUDUSD

Hey traders, how is your trading going so far this week?

I hope you have been able to take advantage of my previous analysis, if you did, I’d like to know how it went…

Last tuesday I analyzed the AUDUSD long term charts and my conclusion was that we needed to wait a little longer before taking any trade.

Today its Thursday, so I’d way its enough waiting, dont you think?

So maybe its about time to take a trade here… but first let me show you the short term analysis.

email

Here is when to trade the AUDUSD (and the main principle of price action)

Written by Raul Lopez on . Posted in Articles & Education, Trades & Analysis

technical indicators

Yesterday I received an email, a trader from Europe asked me if it was a good time to short the AUDUSD…

I told him that not yet, from the way I see it, it is trading near an important level and we still dont know whether the market is going to get rejected from there or break through that important level…

Earlier this morning he replied back, he was a little angry I must say… And said something like “I thought you were a good trader, how come you dont think about going short right now if it has been falling like a rock…”

Great opportunity in a currency pair you haven’t traded (yet)

Written by Raul Lopez on . Posted in Trades & Analysis

Norway-Flag

You already know what my philosophy about trading is:

Trade the currency pairs that have the clearest market condition and the greatest profit potential.

One of the most costly mistakes novice traders make is to focus only in one or two currency pairs (included me of course).

Their reasoning is that they want to get to “know” that currency pairs…

But the thing about it is that sometimes currency pairs are not tradable, meaning that they dont have a clear market condition, and if it doesn’t have a clear market condition, we dont know what it it likely to do… And we’ll still force ourselves to take trades.

Put it this way, if there is a clear market condition, the market could still move against us… imagine what happens when we have absolutely no idea of what the market is likely to do?

You see where I’m getting at right?

Is there still time/room to trade the EURUSD?

Written by Raul Lopez on . Posted in Trades & Analysis

I’m afraid there isn’t my friend… At least for now.

Look, the idea is always to trade a currency pair is to trade it when there is enough room for the market to continue its way up or down.

But right now, the EURUSD is trading too close to its next LT level (which is at 1.2818).

Right now, the EURUSD is trading around 1.2886, so we have like 70 pips before the market hits that level…

Here is the long term chart:

EURUSD 1D

But you need to remember one thing…

Wow Massive Forex Swings

Written by Raul Lopez on . Posted in Trades & Analysis

Mario Draghi

By now, you probably already know that the ECB cut their interest rates from 0.15% to 0.05%

Two weeks ago, Draghi signaled that he was ready to act again, and yet, no one expected the ECB to act so quickly…

But here we are, they reduced their interest rates by 10 basis points to spur economic growth and reduce the risk of deflation…

Was it a good measure?

Only time will tell… but if you want to hear my opinion, Draghi knows his stuff, so its probably the way to go.

Now, did you see the impact in the market?

We saw massive forex swings on most currency pairs and crosses!

Plenty of fundamentals but clear market conditions

Written by Raul Lopez on . Posted in Trades & Analysis

Trade the News in Forex

How is everything traders?

Have you seen the fundamental calendar for the week?

If you haven’t… you should, here are a few of the most important fundamental releases for the rest of the week:

Tuesday:

AUD RBA Governor statement
AUD GDP

Wednesday:

CAD Interest rate
CAD BOC rate statement
JPY Monetary policy statement

Thursday:

GBP Interest rate
GBP Rate statement
EUR Interest rate
EUR ECB Press conference

Friday:

USD Non-farm Payrolls
CAD Ivey PMI

With a week full of important news releases like this one you might think that the market must be very difficult to trade…

But that’s not correct my fellow trader…

A few of the clearest currency pairs to trade today

Written by Raul Lopez on . Posted in Trades & Analysis

You already know about the importance to choose the right currency pairs to trade each day.

Look, even if you have the best system in the world, if you choose the wrong currency to trade you wont get too far.

On the other hand, if you are using an average system, but you trade the right currency pairs each day, you’ll be fine in the long run.

What’s your take about this?

How do you choose which currency pairs to trade each day?

Now, these are a few of the currency pairs that I believe are trading in a very clear market condition.

GBPUSD Analysis

The GBPUSD is trading in a very clear bearish condition, let me show you why I think its bearish:

GBPUSD

I’m going to short the EURUSD

Written by Raul Lopez on . Posted in Trades & Analysis

euro

A few weeks back I analyzed the EURUSD… back then it was trading near a long term level and talked about two possible scenarios:

  • Bullish condition, if it broke through the upper resistance level
  • Bearish condition, if it broke through the lower support level

I favored the later one, specially because we had more than 500 pips before we reach the next LT level…

And you know what… that’s exactly what happened!

The EURUSD broke through the bottom of the range, triggering a bearish condition. And now, I’m going to look for short opportunities.

A new swing in the NZDJPY

Written by Raul Lopez on . Posted in Trades & Analysis

A few weeks back I wrote about the NZDJPY, back then the NZDJPY was rejected from the LT resistance level at 89.57…

It was trading in a very clear bearish condition and because of that, only short opportunities were in play.

Then it hit the next LT support level 86.25 and it traded for a few days around that level… And apparently the NZDJPY has been already rejected from that level…

Here is how the dialy chart looks like:

NZDJPY 1D

There are a couple things that I like about this chart:

Possible 500 pip trade in the EURUSD

Written by Raul Lopez on . Posted in Trades & Analysis

Euro Flag

You know that before taking a trade I like to do a complete analysis of both, the long term and the short term charts.

I do this to make sure that both, long and short term charts are pointing in the same direction, therefore the likelihood of my trade moving in the intended direction increases.

But there is another reason of why I like to do this…

I while back I was reading an article about Warren Buffet and how he thought about risk… He said something about risk that became part of the way I see the market right now:

“Risk comes from not knowing what you are doing”

You know something, he is dead right about it!

From that moment, I understood that it is very important to try to understand what the market is doing right now.

Once you understand what the market is doing right now, you also know what the market is likely to do, and having that information could be the difference between a profitable trader and a trader with negative results.

What do you think?

Anyways… here is why I think there is a possible 500 pip trade in the EURUSD.

StraightForex
Raul Lopez Forex

Trading should be simple

I like to trade using simple tools such as support and resistance levels, candlesticks, price action and others. If you like simplicity, you'll love my Forex Coaching. Read more about me.

If you have any question about anything, please feel free to contact me at: info@straightforex.com or call +1 518 300 3828

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