Good Morning. Here are some trades to watch:
AUD/NZD and GBP/USD trades from yesterday’s notes produced profitable trades.
GBP/AUD: If price stays below the 100 SMA I believe it will drop for for at least 150 pips.
USD/CAD: The sell trade is in progress below the 50 SMA. Hold short as long as price is below the moving averages. If you see USDCAD move back to the level of the moving averages and not move up over them, that would be a great place to get in again.
GBP/USD: We did get the trend continuation move yesterday, though you would have had to be at your charts to catch it after the tag of the 50 SMA. Right now it is in the up-trend. What comes next is either an immediate drop back below the the high mark (see chart) which will trigger a sell back to the 50 SMA. Or, if 5 or more bars go back and it cannot match or surpass the high, I will set up a sell for the retracement. Once prie does get back to the 50, we will watch for 1.) trend continuation again, or 2.) my favorite move between the lines following a long and strong trend with a nice big sell space there.
EUR/USD: This pair really is comfortable right at the flat horizontal moving averages. Plan is the same as yesterday.
1. Sell at 1.1263, PT1: 1.1233, PT2: 1.1163. SL: 1.1380
2. Buy at 1.1455, PT: 1.1485, SL: 1.1360
AUD/NZD: Now that price is at the 50 SMA, we can buy or sell with stop loss about 30 pips or less to put in on the opposite side of the 50 SMA. It hit the pivot and almost touched the 20 SMA from the Day Chart, so it’s possible it will tumble right back through the space in between the lines.
USD/JPY: I like this chart. It will either fall below the Combo Lines keeping the Outside Range intact, or it is thinking about trending, as price has not moved below the 100 in some time. Have a look at this chart: http://bit.ly/1JLECb3
GBP/JPY: I have been watching this pair for a week. It looks like it is struggling to keep the up-trend moving. GBPAUD and GBPCAD already moved. I think GBPUSD and GBPJPY are next.
Day Chart: http://bit.ly/1LGQxEL
Last thing to say, again, is that the GBP pairs are trending. Retracement will come, but selling against the trend is not for everyone. Be patient, because when price gets back to the 50 SMA, if the trend is intact that’s the best place for trend continuation entries. Stop loss if price crosses over the 50 SMA. How far over? An average bar in GBPUSD is about 45 pips. That is how much room price needs to move around. For starters you could give it 45 pips beyond the 50 SMA. Or, if you are present with your charts, you can manually close the trade if price doesn’t stay above the 50.