This is Omar Eltoukhy’s update from his Weekly Forex Analysis Even though its not been easy trading He & I both caught 45+ Pips from the Aud TWICE & after this video was made there was a similar amount of profit on the Aud/Jpy – both trades were planned on Sunday!
Here is Omars fx update & brief blog post:
Hi Everyone!! In case you are wondering about the title (some of you smarties will no doubt already know), this week has been a mixed bag.
Some pairs have looked ugly, some have made us sweat and there has been a little bit of sweet sugar out there as well.
One of the things I both love and loathe about trading is the dynamic nature of the market. Some weeks there are trades everywhere which boldly go off and make you a small fortune, while other weeks scare the pants off of you into sitting on the sidelines. Then, you might see a week where the market goes nowhere.
I have been captivated by the forex market and trading for years now and one of the things that always keeps things fresh is the changing markets. With the US government issue still not resolved, likewise, there is very little resolve in the market. Some pairs are moving while others languish. Let’s see what the mixed bag brought us this week!
Sludge: The Eur/Usd, Aud/Jpy, Eur/Gbp. These pairs have gone NO-WHERE. The Euro is the worst of all just floating out in the middle of “no-mans land” between areas of interest. The other two pairs are slightly better maintaining a small, yet-tradeable range at the moment. We need to see some breaks on these pairs and hopefully they will break in the direction of the least amount of S/Rs in the way.
Sweat: The Gbp/Usd and the Usd/Jpy. The Pound has really given us fits this week. Never pulled back to 5950 or even 6000. Floated above our target area to setup an M2 (which I narrowly avoided because of weak break…see video), only to have a news spike take out any stop loss that could be aggressive. Finally showed like it might climb back up above 1.6070 area and as of writing this is stuck under 6050!! Arrrggghhh. The Usd/Jpy was even sketchier, dipping below 97.00 to show a 2-day fakeout before rocketing back up above this area only to stop right at 97.50!! Arrrggghh.
Sugar: The Aud/Usd. Yes!!! There was a little relief to be found on this pair so far this week. Our planned trade on the pullback to 0.9400 worked out although not for a huge win. At best it went around +80 pips although I ended up with less than that. The daily candles don’t look really strong, but we do have some massive Aud news later on Wednesday (Thursday in Australia). Keep an eye out for more trades from this area after the news potentially.
And as we head into the end of the week keep in mind there is a barrage of news to come this Wednesday, so we might see some of the “sludgy” pairs start moving after it all works its way into the minds of the market participants. Keep your eyes open and stick to your trade plan!! Remember, trading without rules is like driving drunk. You might get away with it for a little while, but eventually you’ll probably crash. I want to say thanks to everyone for their comments!! Best wishes and happy trading!!!
Check Out the Video!!
http://www.youtube.com/watch?v=6-xH7jdrb3g&feature=share&list=UUh9jKEbExtwL0MnwLBeyoyQ
You reinforced my beliefs when approaching the Forex market in the intro of your video. Sitting in front of the charts watching every tick in only fun when you discover the markets, but grows old very quickly.
It’s better to approach the market from the higher timeframes and be less involved with the charts giving you time to life you life, not being locked up in front of your computer. The higher timeframes do provide much better clarity of the market direction anyway and generate more stable signals.