The big figures continue to dominate the trading ranges
Even though FX markets aren’t trending much, we’re still seeing some good moves that are bringing plenty of opportunities.
I’ve mostly been trading off various big figures, and by and large they’ve been paying off, and I’m going to stick to that until something changes.
GBPUSD has been a good sell into 1.4000 and I like the look of the possible support into 1.3900/10.
AUDUSD has been a dcent trade shorting 0.7900, although I took myself out of a short yesterday for -7 pips when we broke into 0.7900. That alone was a good trade because my original stop was at 0.7915, and would have been hit costing me more. We’ve had another failure follow, and that will cement the level once again. I’ll be interested in longs down near 0.7800/10, but I’d be more keen on the lower 0.77’s as it’s multi-year S&R
I’m keeping an eye on USDJPY with a view of taking a small long into 105.50, should we see one, otherwise I’d like to try testing the support at 105.00 with a long just ahead. 107.00/30 is still the main topside line to breach and where shorts have been paying off.
USDCAD (as just posted on the live blog) is up against 1.30 once again. I’m going to play that the same way I have been recently with shorts around 1.2995 and a buy reverse at 1.3010, in case it breaks.
In pretty much all my trades of late, I’m taking some profit on half the trade some 15/20 pips in. Because we’re not trending I want to reduce my risk as much as possible, as quickly as possible, and get some money in the bank. That then leaves me to run the rest and try for more profits. USDCAD has been a pair I haven’t given enough room too and been to quick to take profits. Reversals from 1.30 have been quite big but there’s also been a lot of headline news behind the moves.
While trading off these levels has been good, we should never get complacent. Prices don’t like staying contained in tight ranges for too long and the more times we test a level, the greater the chance that it breaks. Really, it’s like trading an ever decreasing circle, and so I make sure that my risk does the same, meaning I keep stops tighter and tighter and get out when things look dodgy, just like with AUDUSD yesterday. With hindsight, that exit yesterday looked premature but we don’t trade hindsight, we trade the price action and what it’s doing live, and it’s in those times that the real decisions are made for right or wrong.
That’s my view of trading at the moment but we’ve a whole host of opinions and different trades happening in our new live trading room. Feel free to pop in and have look.
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