IT WAS A SPECTACULAR WEEK LAST WEEK!
I made a total of 680 pips trading AUD/CAD, EUR/CAD and the USD/CHF and if you had attended our free weekly profitable trades sharing session and traded on a lot size together with us, you would have pocketed a cool $6800. Not bad for a week’s trade at all!
More on that later. Let us turn our attention to the future for now.
I seldom look into the Swiss Franc currency pairs often, but these two setups, the EUR/CHF and GBP/CHF just broke into my “2018 Trade of the Year” watchlist.
Here’s a brief analysis of the trade setup –
Last week, the meeting minutes from the European(ECB) was generally hawkish, providing some bullish sentiment on the Euro. However, I believe that as long as ECB maintains its easing policies, upside on the Euro may be limited.
Combining with the technical aspects on the chart, there is anstructure forming, with a divergence on as well. Furthermore, price has hit the minimum expected areas based on between 100% – 123.6%.
These reasons provided me the conviction in looking for a longer term trade to the downside towards 1.0483 – 1.0739 area.
A very similar setup on GBP/CHF as well.
680 PIPS PROFIT LAST WEEK
3 trades hit my take profit target with a total of 680 pips last week.
AUD/CAD broke of out the downtrend structure impulsively, and started to form a corrective structure. This gave me the conviction to take a long trade targeting 0.9899.
Price of EUR/CAD fell in 3-waves, with a confluence of the bottom trend line as structure. In addition, there was also a fibonacci extension confluence at that area. I took the opportunity to long EUR/CAD, and price hit the target at 1.5212 shortly after that.
For the US Dollar Index (DXY), I saw price moving higher correctively, and based on my wave analysis, this move might be a potential wave 4 correction. This gave me the reason to expect that there is a high possibility price will move one more wave lower towards 91.13 – 91.71 area.
As I don’t trade the DXY directly, I look to the USD/CHF for a similar setup, and shorted the USD/CHF with the similar reason based on the DXY analysis.
Dollar Index Before
Dollar Index After
EUR AND JPY IN FOCUS NEXT WEEK
Both the EUR and JPY have been hitting the headlines these two weeks, with EUR/USD breaking the previous high of 1.2094 back in 2017; and the JPY strengthening against the other currencies.
There were even mixed comments from the market with respect to a potential change in the ECB QE programme. The German coalition news also did inject signs of nervousness into the market.
Next week, the BOJ and ECB will be having their monetary policy statement released and press conference on Tuesday and Thursday respectively. Such risk events do provide us with opportunities to trade and profit from the market.
Join us this coming Monday, 22nd January, from 7.30pm to 9.30pm to find out how we will be trading and profiting from the EUR and JPY.