Free Profitable Forex Newsletter
Hey! This is Philip with the Monday trade idea of the Free Profitable Forex Newsletter!
Currencies to stay ranged in anticipation of market-moving news/events this week.
Short-term EURJPY selling opportunity
It's a big week in the Fx market with different impactful news and events scheduled on the calendar. Therefore, most pairs are likely to stay broadly range-bound for most of the week as traders await the outcome of these events.
The Euro currency continues to be pressured down by political woes. The Italian budget deadlock
now seems even harder to get resolved soon. Additionally, this morning we witnessed increased volatility in Euro pairs on the announcement from German Chancellor Merkel that she will soon be ending her political career.
In a time of already high uncertainty, this news only adds to the worries for investors. The Euro will find likely find it very hard to rally at such a time, so we are looking for selling opportunities.
The Japanese Yen, on the other hand, has
strengthened recently because of falling stock markets and if stocks remain near the lows the Yen could stay firm. USDJPY is also testing resistance at the moment around 112.30.
Hence, a tactical short-term EURJPY sell trade could be a good trading opportunity.
EURJPY pushed above the 128.00 resistance level today but is now back below it. On the 1-hour chart, we can see that a bearish dark cloud cover candlestick pattern has formed.
Technically, although EURJPY bounced strongly last Friday, the momentum of the decline during the past week suggests another test toward the lows is likely as
strong trends are rarely reversed in one go.
For the moment, the bearish signals around 128.00 are not overly convincing, but the risk-reward ratio is attractive.
We can wait for a more convincing short signal in this resistance area on a second attempt at this 128.00 resistance.
EURJPY may also push all the way to 128.50 (which is part of the wider 128.00 128/50 resistance area on the daily chart) before a strong
bearish signal occurs. To the downside, the 127.30 support area looks likely to be reached in a bearish scenario.
Entry: - Look to sell toward the 128.00 level and possibly higher if the price makes another attempt higher.
Stop loss: - Above the bearish signal/pattern. Currently, that level is 128.22, but EURJPY could push toward 128.50 as noted above.
- So, placing the stop above 128.50 would provide a bigger breathing room for the trade.
Target:
Keep in mind that this a tactical short-term trading opportunity and conditions could change quickly.
Particularly, this trade attempts to profit on the negativity that is currently present in markets (toward the Euro and also the fragile environment in stocks).
If the negativity would subside, then EURJPY would likely find a bottom.
Conversely, if negativity intensifies, then EURJPY would probably extend the slide even on the larger charts.
Trade signals from the past week (FREE + FULL paid newsletter)
- October 22, 2018 - Short GBPUSD from 1.2997, target reached at 1.2800 = +197 pips profit (featured in free + full newsletter)
- October 17, 2018 – Long USDJPY from 112.35 - closed on October 25 at 112.55 for +20 pips profit as the conditions for the trade started to weaken (featured in full
newsletter)
TOTAL: +217 pips profit in the past week
TOTAL: +533 pips profit since the beginning of October
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High Risk Warning: Please note that foreign exchange and other leveraged trading involves significant risk of loss. It is not suitable for all investors and you should make sure you understand the risks involved, seeking independent advice if necessary.
Any opinions, news, research,
predictions, analyses, prices or other information contained in this newsletter is provided as general market commentary and does not constitute investment advice. FX Trading Revolution will not accept liability for any loss or damage including, without limitation, to any loss of profit which may arise directly or indirectly from use of or reliance on such information.
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