I wanted to try to mix things up a little bit by starting Blog posts on general FX Trading information in addition to my normal posts on possible trades. So for this post I wanted to simply list the G10 and LatAm currencies:
List of G10 Currencies
Australian Dollar (AUD)
British Pound (GBP)
Canadian Dollar (CAD)
Euro (EUR)
Japanese Yen (JPY)
New Zealand Dollar (NZD)
Norwegian Krone (NOK)
Swedish Krona (SEK)
Swiss Franc (CHF)
US Dollar (USD)
List of LatAm Currencies
Argentine Peso (ARS)
Brazilian Real (BRL)
Chilean Peso (CLP)
Colombian Peso (COP)
Dominican Peso(DOP)
Mexican Peso (MXN)
Peruvian Nuevo Sol (PEN)
Uruguayan Peso (UYU)
Wednesday, February 25, 2009
Tuesday, February 17, 2009
Up reversal and trendline break pointing to a stronger Aussie.
The weekly chart of the AUDUSD is currently showing two very good setups pointing to a higher Aussie in the weeks ahead. The time frame of these trades is based on the weekly chart, so we should be very patient and allow them enough time to realize all of their potential which could take several weeks, perhaps until early April. We should also keep an eye on the entry points of these trades and review them at the end of this week as things might change depending on how the pair closes the weekly candle.
Starting with the trend line break, the entry point for the break is at .6780. This entry point might change depending on how this week ends but we should proceed with the current price levels and set .6780 as our entry level. The take profit target of this trade is at .8862 which if reached would give a remarkable 2082 pips profit. The stop loss of the trade should be placed at the previous lows of .6006 or 774 pips from out entry. The reward to risk ratio of this trade equals 2.69 which is really good and one not to be missed.
I marked the different price levels for the 1 2 3 4 up reversal in the chart above. This strategy is very straightforward, if the pair tries to make new lows and fails it will most likely reverse to previous highs before the decline. If we cross the price level 2 (marked by number 4 on the chart) then we should be on our way to our target of .8260. The entry of the trade should be set right above price level 2 (price level 4 on the chart) or .7270 and the target should equal the distance between 2 and 3 which counting from our entry point, number 4, would put us at .8260, the stop loss should be set to the most recent low of .6246 (3 on chart). The reward/risk ratio for this trade is only 0.97. Normally I would not recommend a trade which this type of reward/risk ratio but since we've combined this trade with another, both going the same direction I think the trade is safer than explained from the ratio.
If these entry points are reached within the next couple of weeks we should be on our way to very good gains.
Starting with the trend line break, the entry point for the break is at .6780. This entry point might change depending on how this week ends but we should proceed with the current price levels and set .6780 as our entry level. The take profit target of this trade is at .8862 which if reached would give a remarkable 2082 pips profit. The stop loss of the trade should be placed at the previous lows of .6006 or 774 pips from out entry. The reward to risk ratio of this trade equals 2.69 which is really good and one not to be missed.
I marked the different price levels for the 1 2 3 4 up reversal in the chart above. This strategy is very straightforward, if the pair tries to make new lows and fails it will most likely reverse to previous highs before the decline. If we cross the price level 2 (marked by number 4 on the chart) then we should be on our way to our target of .8260. The entry of the trade should be set right above price level 2 (price level 4 on the chart) or .7270 and the target should equal the distance between 2 and 3 which counting from our entry point, number 4, would put us at .8260, the stop loss should be set to the most recent low of .6246 (3 on chart). The reward/risk ratio for this trade is only 0.97. Normally I would not recommend a trade which this type of reward/risk ratio but since we've combined this trade with another, both going the same direction I think the trade is safer than explained from the ratio.
If these entry points are reached within the next couple of weeks we should be on our way to very good gains.
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