MP FOREX ADVISORY

Posts Tagged ‘Forex Trading’

Today, we made some profit on several trades in the GBP/USD as we played the tight afternoon range before the opening of the Asian session.  The EUR/USD is flirting with the 2010 low around 1.3433.  A break of that level could send this pair tumbling down to the 1.3000 level over the coming weeks.  The GBP/USD has also been under quite a bit of selling pressure since the 0:00 GMT open yesterday.  A worse than expected British CPI Report early this morning has not helped this pair.  Tomorrow, we look forward to the release of the US Core Durable Goods Report and New Home Sales.

Today we entered a short position in the GBP/USD at 1.5246 and made some good profit.  It has been a very erratic week in both the EUR/USD and the GBP/USD as we have seen substantial up and down daily swings.  The EUR/USD briefly broke below the 1.3600 level today, and it appears to be headed for further declines tonight.  A break of the 1.3580 level should signal more down side risk.

We have not seen any action over the past couple of trading days.  Yesterday, we remained on the sidelines because the Fed Funds Rate and the FOMC statement were released late in the US session, which created much higher than normal volatility.  Today, we had orders in in both the EUR/USD and the GBP/USD; however, netiher pair triggered our trades.  We definitely expect to see some action tomorrow.

Today, we entered trades in both the EUR/USD and the GBP/USD, netting out a small profit for the day.  Since the bottom has been falling out of both currency pairs since the open of the market yesterday afternoon, we played it safe and only rode the short side of our trade signals this afternoon.  Both the EUR/USD and the GBP/USD appear to be headed for further declines this week.  Key support levels we will be watching tonight is 1.5000 in the GBP/USD and 1.3600 in the EUR/USD.   

Today we were able to cature some good profit by capitalizing on the choppy price action in both the EUR/USD and the GBP/USD.  After retracing back to near the 1.5200 level near the beginning of the week, the GBP/USD has sunk below 1.5000 again today and appears to be headed for more declines.  If the 1.4934 level gives way, we are looking for further declines possibly down to near the 1.4800 level before the end of the week.  We will be monitoring the British Manufacturing numbers, which will be released early tomorrow morning. 

Today, we entered a short position in the EUR/AUD, which was spread across multiple price points.  Our price target was never reached and we ended up cutting the trade just before the beginning of the Asian session in order to reduce our exposure.  After several weeks to the down side, it appears that the EUR/USD may be forming a reversal or at least retracing some of the recent decline; we will look for confirmation of this as we proceed through the week.

We started the new month off on a good note today as we bagged some profit in a series of short trades in the EUR/JPY and in the GBP/USD.  We are approaching the market with an abundance of caution as we continue to see extremely high levels of volatility.  Today, the GBP/USD fell more than 400 pips to a 10 month low due to political uncertainty in Great Britain. 

Today we entered short positions in the GBP/USD, the USD/JPY, and the EUR/USD, and we generated profits in all three pairs.  Today was yet another extremely volatile day with both the GBP/USD and the USD/JPY more than doubling  their respective recent daily average price movement. 

Yesterday, we were able to bank some profit as we traded higher than normal volume – entering 4 different currecy pairs:  the EUR/USD, the AUD/NZD, the AUD/USD, and the GBP/USD.  By far, our best trades were our short positions in the EUR/USD.  Today, we have remained on the sidelines thus far as market volatility has remained much higher than normal right into the afternoon hours.  It appears that the Euro may be poised for further declines as we head into the Japanese and European sessions.  The critical area of support in the EUR/USD is around 1.3440 – the low registered on 2/18. 

This Forex Trading System is a range trading system that is designed to capture a series of small but consistent gains during the afternoon trading hours when the market is tame and far more predictable. Most currency traders refrain from trading during the hours between 17:00 GMT and 23:00 GMT simply because the market tends to be very non-volatile and boring during these hours. However, what most traders fail to realize is that there is a tremendous opportunity in trading during this time period. In the midst of the apparent boredom of a sideways range trading pattern lies a predictability and a rhythm that should be the envy of any good speculator!  In essence, we are exchanging excitement and volatility for predictability, and predictability is far more valuable when it comes to trading.

The goal is not to be entertained by the market but rather to use it as a mechanism whereby we can generate consistent profits. Generally, the market produces consistent and predictable sine waves late in the US session and before the open of the Japanese market. We have discovered that applying this Forex system during this time period provides a literal gold mine of opportunity!

The purpose of this blog is to provide updates on a daily basis of the results of this trading system and to keep you informed of significant market events that may effect the trading.

Best wishes! -

MP Forex Advisory