Forex À La Carte

Fujisan here.

I used to be an option queen and now I became a forex princess.  I don’t have any option strategy to cover this week (again) as I’m not comfortable about position trading right now.

I was taken by surprise on Friday when, all of a sudden, the USD dropped like a rock.  I don’t really know what to make out of this.  It was the end of the month Friday.  Could this be a false breakout?

I went through the major currency charts and they were all showing the weakness in the USD.  Sorry – I don’t keep track of the USD index, but this will give you an idea as to what is going on with the major currencies.  If you look at the USD/GBP pair, it already broke out of the multi-month bull flag on Friday.

GBP/USD – Breaking Out?

USD/JPY – Three Drives Pattern?

The USD/JPY pair seems to have met my previous target and ready to roll over.

EUR/USD – Daily Chart – Ready to Breakout?

The EUR/USD made a huge move on Friday in a matter of hours, and closed right underneath of the major resistence level.  If the Friday’s impulsive move repeats, this is going to be a breakout.

EUR/USD – Hourly Chart

Many of us went long almost right at the low of this false breakout at 1.40, but none of us (is there anybody still keeping the longs?) kept the longs.  Speaking of letting the winner run……

USD/CAD – after all, that was not a double bottom?

I was calling a possible double bottom on this pair, but that was not materialized.  The trend is still continuing to the downside.

Ok, so much for the currency charts.  Here are some ETFs for the regular audiences.

SPY Chart – still some room to the upside?

IWM – Breaking above the neckline?

QQQQ – Already broke above the major trend line

AAPL – almost going back to all time high as if nothing had happened……

As I said in my comments this week, it’s much easier to trade forex than the equities.  This may be because I don’t have much bias as to what “should” be happening to certain forex pair.  I just trade what I see.  On the other hand, I feel guilty going long the equities when I see so many negative comments as to why the market “should not” go up.  We should just take the trading signals as they come.  May be we are overanalyzing it too much.

How to start Forex

If you are interested in trading forex, please start small.  Start with 1~5 lots at a time.  As the leverage so huge, you will get hurt without a proper money management.  Please risk no more than 1% of your account balance at a time.  AWLAYS have your stops in.

Have a good weekend, everyone!

Fujisan