Welcome to another entry into my trading journal. Today, I’m again analyzing the major currencies, so I can find the best 2 to pair against each other and take trades in. Read on for today’s Forex market analysis.
I don’t know what it is, but I’m especially sluggish this morning. Maybe it’s the weather. It’s a stormy morning and still looks borderline nighttime outside despite it being 8:15 A.M.
That said, I’m up, I cleaned the kitchen a bit and made a protein shake and brewed coffee and am ready to go and it’s only 8:15. Emotionally, I could feel better, as per usual, but there’s nothing to do but to keep putting one foot in front of the other and getting to work. Let’s dive in.
USD – Neutral
This made a sizable drop overnight and isn’t showing any signs of pushing back up right now. I don’t really have much else to say about it today so I’ll hold off.
CAD – Short
This is sitting near the lows of the range that it’s been in for the last ~week, but is sitting right on the lows of a similar range it traded in earlier this month. Each time this has broken this to the low side this past 5 (trading) days, it’s fairly quickly rallied back up to within the range, but A) if this can break the support area from this month, the amount of room to the other recent lows could make for a good profit potential and B) The movement might be a bit more “clean” on individual charts. I’ll give this a look to the short side today, but, again, I’ll try not to chase.
EUR – Neutral
This is trading in a tight range right now, and has been since early this week. Right now, price is right in the middle of that range and doesn’t look like It’s making any strong moves in either direction. I’ll leave this alone for now and revisit next week.
GBP – Long
I’ll say this right off the bat — the RSI is showing this as overbought right now. But that’s in the basket, it might look different on individual charts. Price pushed up and made a new high, but overnight last night made a decent drop.
Since then, and throughout the rest of the morning, price has pushed back up and is closer to the highs than it is to the lows it made overnight. Like I said, this might be extended, but the move is too strong to ignore, so I’ll take a look at this vs other currencies to see if there’s still profit to be made.
Today’s Pairs
GBP/CAD – Long
CAD/CHF – Short
GBP/AUD – Long
AUD/CHF – Short
JPY – Neutral
This has been strange lately. It’s largely been pushing down, but for a lot of this month has had some wild up swings during this downtrend. A couple times, even, it’s made reversal moves and made small up-trends. Over the last several hours, it looks like another one of those small up-trends might be forming. Price made a new swing high at the end of the day yesterday and made a nigher low this morning; and as of right now, price is pushing up — though it’s not quite at the recent swing high yet.
With the strong up move it’s made over the last few hours, I don’t want to look at this short, but since it’s not making another higher high yet, I want to wait for more confirmation before I trade this long, so I’m just going to hold off for now.
AUD – Short
Yesterday, this ended up making a strong push down that took out a support area that’s held up for several months. Price rallied from there, and by this morning spiked up back to that prior support area, and right now, price is hovering right around that area. If this is just a retest, and it makes another push down, this could run a long ways. I’ll definitely take a look at this to the short side today.
NZD – Neutral
This has been in a range for the last, roughly, week, not moving much in either direction. Yesterday evening, price pushed out of the range to the downside a bit, but by the end of the day had rallied back up to within the range.
Right now, price is still trading within that range, somewhat near the lows, but not quite at the lows; and there’s a couple other minor support areas below the next one. I don’t see a clear indication of one direction over the other — and definitely not a strong move, so I’ll hold off here.
CHF – Long
This spiked at the end of the day yesterday, too, making new highs. But in the middle of the night, it made a sizable drop. Right now, price seems to be trying to push back up to the highs, but is failing to hold on to any gains. I’m cautiously bullish here. I suppose I’ll take a look at this on individual charts, I just have to be careful not to overlook anything (like a nearby key level or an extended move).
Thanks for reading and stay tuned to see the actual trades I made given this analysis. If you’ve got any questions or feedback for me, please leave those in the comments below!