The EUR/USD didn’t react in a seemingly logical manner to this morning’s US news reports. The bounce at today’s R2 pivot point during the first half-hour of the session was the first clue that New York was destined take this currency pair in a southern direction. The best entry after news was identified using both the 3-minute and 15-minute charts. The subsequent move down bounced precisely at the logical target – the 200 ema – producing a 28-pip profit.

Using both Fibonacci Retracement to Extension targets and pivot points, we observe several potential targets for our news trade of the GBP.

The EUR/USD simply fizzled today following the release of U.S. durable goods orders news. Fortunately, the dollar yen had already been moving up during the prior sessions, and got its second wind in today’s New York session. After a conservative entry at the 5 ema following the break and re-test of the M4 pivot point, it was a “ride the 5” scenario all the way to London close for a 30-pip profit.

The GBP/USD pair was sideways for the beginning of the London session with braiding EMA’s. This is fairly normal before any somewhat major news releases, today’s release being GDP at 4:30am NY time. However, the pair took off 30 minutes prior to news making the handling of a news ‘price trap’ trade far more difficult to manage. In this video we show you a few things to watch for to keep yourself out of trouble by chasing price. Then using multiple indicators such as bollinger bands, and various EMA’s, along with a shorter term time frame. Can help you enter precisely with confirmation in the middle of a pre-existing move. As you will see however, proper trade management is also important. As this trade plan reached around 20 pips in profit it showed signs of ending prior to any target. Proper stop/risk management protected us from incurring a loss when a massive reversal took place. .

The EUR/USD found support at the 21 ema on the 4-hour chart during the day’s prior sessions, then rose above the central pivot point. The break of the 1.4100 psychological level at the open of the New York session produced a 27-pip move which ended at the M4 pivot point in timely fashion – just 15 minutes before the release of U.S. news.

After reaching today’s R1 pivot point – and a new all-time high – during the Moscow session, the EUR/USD showed signs that it might become range-bound as the London lunch hour arrived on a Monday with a sparse news calendar. New York traders did manage to push the euro below support, building hopes for an R1 to S1 day. Modest profits were attainable from the euro and from similar counter-trend moves among the other majors, but follow-through was limited.

Today we review the importance of having a trade plan, what constitutes a plan and having the discipline to follow it through.

The FOMC’s decision to cut the federal funds rate by 50 basis points triggered large moves for several major currency pairs during yesterday’s New York afternoon. Traders who approached their charts at the open of today’s New York session found that very little had happened to the EUR/USD during the day’s preceding sessions. Unfortunately, U.S. CPI and housing starts news didn’t offer enough punch to break the euro out of its range. Further, a week-to-week drop in U.S. oil inventories failed to break the USD/CAD out of the 25-pip range which formed mid-session. A good day for capital preservation.

After the British MPC Meeting Minutes release, the British pound took a trip south. While the GBP/USD had already moved a fair amount of pips, we were able to put together a trade plan based on trapping of the news price movement on a 5 minute chart. This led to a quality low risk vs. high reward trade setup that ultimately led to a 60-90 pip trade depending on member’s exit plan. Just another day at FXBootcamp.com

Keeping today’s video short and sweet. Looking at entry points of an ongoing trend. Confirmation kept simple as well. Unfortunately for those of us entering after the Moscow Session starts, the trade was either knocked out at BE or a small loss.