Trading Forex Live

Trading Forex – GBP/USD Pointing Down

admin — Sat, 20 Apr 2013 17:56:12 +0000

Trading Forex – Market outlook for GBP/USD: In the last couple of weeks we have seen a pullback on GBP/USD after the massive drop all the way from the 1.6380 and down to the 1.4827 level. Surely after such a massive drop, a pullback should be expected.

After the drop, GBP/USD made a pullback to the 1.5411 level, and since then, the pair finally started to move down again. Right now, the pair is trading a the 1.5225 level, and I think we are likely see the pair start tanking again, probably even with new lows in a near future.

The pair is still trading above the ascending trend line, but its getting closer. Friday was a bearish day, and I think we are likely to see the pair continue this trajectory on Monday.

A continuation to the downside will probably not happen right away, which is why I recommend that you wait until London open, before you look for any possible entry. Should price action give a signal to go short around London open, we could see a heavy move right from the morning.

By waiting for the right time to enter the market, you will also be able to enter the trade with a limited stop loss level, hence get a potential good risk:reward ration on the trade.

As always, keep risk exposure low, and make sure to place a hard stop on the trade immediately, should you go ahead and take the trade.

Expert Advisor Preview – FX News Bot

admin — Sat, 13 Apr 2013 13:52:35 +0000

The creator of Million Dollar Pips, William Morrison just released a new Expert Advisor called FX News Bot. I have not tested this EA but I plan on doing so in a near future simply because this seems to be a bit more transparent than 90% of all other EA´s being released.

First of all, William Morrison is a know guy in the expert advisor world, due to his other EA called Million Dollar Pips. This EA was a breath of fresh air to the industry as this EA actually did show really good results. Obviously people had different results since aspects such as broker selection, VPS and spreads play a huge role when it comes to the profitability of an EA. However, it was pretty clear that William hit a homerun with the release of Million Dollar Pips.

However, this is not the only reason why I think FX News Bot might be worth a try. The sales page has a lot of information and is very different from the typical sales style. A lot of information is shared, both about the way in which the EA operates and executes trades, but also about the different settings that have been built into the EA. Finally and most importantly, is the historical performance from MyFxBook. For 95% of the expert advisors out there, MyFxBook details are never shared, and the simple reason is because the vendor has something to hide. This is not the case with FX News Bot. In addition to this, the results look good.

Head over to FxGrade to read more about FX News Bot and share your thoughts, or drop a comment below.

Cable Closes Below Critical Level – Downside ahead

admin — Sat, 23 Feb 2013 06:29:45 +0000

Cable has been tanking heavily all week and currently trades at the 1.5219 level. It broke below the critical 1.5220 level which has proven to be a strong level of historical support. Initially we got a break of the level followed by a quick pullback, where the pair was range trading for a couple of hours. But then shortly before EOD, the pair once again, started to drop, and the pair did manage to close below the strong support level.

This level has been the key point when it comes to deciding on a potential short trade on Cable or not. Closing above it, we could easily see a full-blown pullback for hundreds of pips, and although this is still possible, a close at this level, does give us a good indication of potential downside.

I will be standing by for a short trade on monday around London open. There is no reason to jump in when the Asian session begins, as needless to say, even though the pairs closed below the 1,5220 level, it will fluctuate around this level, before making the next move.

Keep in mind that this trade will be based on the weekly charts, and because of this we need a larger stop loss and smaller position size, in order to keep the risk management in check.

Follow along on monday for further updates on a potential short trade on Cable.

Trading Forex – EUR/USD at strong support

admin — Wed, 16 Jan 2013 20:05:49 +0000

Trading Forex – Trade setup January 16th – EUR/USD has been working it´s way higher and higher over recent weeks. Yesterday Juncker said the euro rate is dangerously high and the pair immediately started dropping for close to 80 pips in total within a short period of time. Today the pair has been very range bound and the pair is currently trading at the 1.3290 level, just around 50 pips lower that after Junker dropped the news.

Now keep in mind that trading solely based on fundamentals is difficult as there is always lots and lots of different voices to pay attention to. Although some would argue that with that recent comment, looking for any possible long trade would be suicide, this is exactly what I am looking for.

As mentioned above, the pair is currently trading at the 1.3290 level. This is a perfect area of strong support, and I think a long trade from this level should prove to be pretty good idea, specially when you look at the possible risk:reward potential of the trade.

I will be entering a long trade from this level, with intentions of keeping it over night. We probably won’t see a lot of action on this pair throughout the Asian session. I don’t expect to see any significant movement before tomorrow during the London session. However, I think the downside is very limited, so I will be jumping in here, and placing my stop below the 1.3250 level, which is pretty much where the stop support area extends to.

Keep in mind that a trade easily can go bad so make sure to limit your risk exposure and place a hard stop right away.

Trading Forex – EURUSD Long before FOMC

admin — Thu, 03 Jan 2013 18:14:34 +0000

Trading Forex – Market Outlook January 3rd – Today we had ADP numbers which came out better than expected, and forecast for NFP tomorrow is also expected to be slightly better compared to last month. In addition to this, the whole fiscal cliff situation has been solved (for now at least), which is also boosting risk sentiment for further gains, which is also clearly indicated by the recent rally USD/JPY. Solely by looking at USD/JPY, one might easily be inclined to sell EUR/USD as if USD was to show any similar action in this cross as it has done on USD/JPY, the pair would plummet. However, it seems to be holding its gains just fine.

Although we have seen a bit of downside throughout the day, I think the pair is currently trading at a perfect level for a long trade. EUR/USD is currently trading at the 1.3112 level, and with the price action shown other the last couple of hours, I think this is a good spot to look for a long trade. If you look at the picture below, you will see that the pair is currently trading at a strong level of support.

I will be taking a long trade at the current level of 1.3112 with a stop loss at the 1.3060 level which is below the recent wick down. This level is also below the significant area of support, so should the pair continue further down and break that level, I would not want to be in the trade anymore. Obviously I don’t think this will happen. I will look to take profit around the 1.3315 level, which is right around recent highs. Based on current price action, we are buying at the low and looking to sell at the top.

This trade will give us a very favorable risk:reward ratio, and a very good setup. However, keep in mind that things can go bad, so make sure to keep risk exposure low, and place a stop loss right after you enter the trade.

Trading Forex – EUR/USD Perfect Place for Long?

admin — Mon, 08 Oct 2012 05:36:23 +0000

Trading Forex – Market Outlook October 8th – Last friday we had NFP figures from US, and as expected, this caused a volatile market. EUR/USD moved all the way up to 1.3070, and has since then moved a bit lower and currently trades around the 1.2990 level. We think this level is a perfect spot for a long trade, if we get the morning fakeout to the downside. We will know shortly.

From the 4-hour timeframe, the pair is currently trading right in-between the 10 and 21 EMA zone, which is usually a perfect spot to look for a trend-continuation trade. In addition to this, is aligns perfectly with a strong level of support, which is why we might be looking at a very favourable risk:reward trade to the upside.

As mentioned above, the pair is currently right at the 1.2990 level. If we get a bit of fakeout to the downside at 07:00 GMT, we will be looking for a long trade, with a stop loss around the 1.2950 level, and a profit target of at least 100 pips – and we think more should be possible.

As always, make sure to keep your risk exposure low, and place a hard stop loss, right after trade execution.

Trading Forex – Further Upside Before NFP?

admin — Fri, 05 Oct 2012 06:14:32 +0000

Trading Forex – Market Outlook October 5th – As mentioned in yesterdays post, Trading Forex – EUR/USD Heading for 1.3000, we expected EUR/USD to reach the 1.3000 level, and likely go slightly higher, which is exactly what happened. Right now the pair is trading at the 1.3010 level, and London will open in one hour from now.

Although the pair, once again, broke the 1.3000 level, lots of traders might be looking for further upside. I am as well, but not primarily because of the thrust through 1.30, as this level doesn’t seem to prove specially strong as support nor resistance lately. However, from a technical perspective, it seems very likely the pair will be heading higher. One thing to keep in mind is that we have NFP coming out today, and it seems like there is agreement that the figure will come out better than expected (which would be USD positive).

I think we are likely to see further upside, until NFP today. Direction after NFP is impossible to tell at the moment, as this completely depends on the numbers released. Because of this, it is a wise choice to be out of any trades, or at least have a stop loss at break even, when NFP figures are released.

I will be looking to long the pair around current level, or if we get a bit of pullback right around London open, looking to trade the pair long from the 1.2970 level.

Make sure to play it safe today, as NFP is likely to shake up the market.

Trading Forex – EUR/USD Heading for 1.3000

admin — Thu, 04 Oct 2012 09:00:52 +0000

Trading Forex – Market Outlook October 4th – Once again, it looks like EUR/USD is trying to make it for the 1.3000 level and very likely a bit higher. The pair is currently trading at the 1.2935 level, and did have a thrust up earlier this morning. From a 4-hour timeframe perspective, the pair clearly broke the out of the descending channel, to the upside, and from a technical perspective, upside is clearly in the cards.

We have a clear level of resistance at the 1.2970 level, and from that point and up to the 1.3000 should be no big deal. However, I think it might be a safer bet to look for longs now, compared to later in the day, specially due to all the high-impact news releases we have today.

I am holding on to my long. If you don’t have a position, I would be looking to buy and ride it up at least to the 1.2970 level, and make sure to have positions closed out before news hit the wire, as there is a chance that ECB will lower rates.

Play it safe. Have a low risk exposure, use hard stops, and close out any positions before news today.

Trading Forex – EUR/USD on a Morning Rally

admin — Wed, 19 Sep 2012 06:19:14 +0000

Trading Forex – Market Outlook September 19th – So yesterday we did actually see a pretty good pullback on EUR/USD which was exactly the opposite of what I though would happen. There was no massive move down, but just slowly grinding lower throughout the entire day.

Needless to say that patience would have been a really good choice yesterday. However, I am definitely still biased to the upside, and today we have seen an early rally on EUR/USD, going from the 1.3030 level and currently trades around the 1.3080 level.

An early move like this is in my opinion clearly indicative of continuation to the upside, and in spite of the drop yesterday, I will once again dare to say that 1.3200 definitely is possible, and with a move this heavy before London open, I think this is very likely to happen today.

I am currently long and I will be holding on to this throughout the day, or until we reach the 1.3200 level. There is still plenty of space to get in, but you might want to do so on a bit of a pullback in order to keep stops tight.

I also have a long position on EUR/JPY, which I expect to head in the same direction, again, throughout the day. I will most likely be closing out the trade around London close but that all depends on today’s price action, and if we get the moves I anticipate.

Trading Forex – EUR/USD with More Room for Upside

admin — Tue, 18 Sep 2012 06:07:13 +0000

Trading Forex – Market Outlook September 18th – I think lots of traders are starting look for a possibility to short EUR/USD due to the recent heavy rally. However, this is clearly a dangerous time to look for short positions. I do agree, that after a thrust to the upside like we have seen lately, a pullback is not unnatural. However, there are two main reasons why I think we are likely to see further upside in a near future (as in today, very likely).

First of all, the pair broke and still trades above the psychological 1.3000 level. This is huge in itself and a re-test of this level should prove to be a solid level of support.

Secondly, current price action on the pair suggests further upside – We have a very clear flag formation on the 4-hour chart on EUR/USD and the pair is coming down in the in-between level of the 10 and 21 EMA, which is usually a good place to look for an entry in the direction of the trend after a bit of a pullback.

I am clearly still biased to the upside and think we are likely to see the 1.3200 level being reached within a near future. Even if we should get a good setup for a short trade, I would be extremely leery taking any trades in that direction. I will focus on long trades, as this is where the truly favorable risk:reward setup is hiding in my opinion.