SNB strikes again! The Swiss franc sold off sharply during the first hour of today’s New York session as the BIS reportedly bought currencies on behalf of that central bank to weaken Switzerland’s currency. A Fibonacci study and the concept of role reversal contributed to the design of a trade plan for buying the USD/CHF currency pair during the minutes following the initial spike on the swissie pairs. The EUR/CHF pair served as a guide to closing the USD/CHF long trade for a 110-pip profit.
For the second day in a row, the swissie delivered during the New York session. The USD/CHF broke one level of visual resistance, then reached another – the daily R1 pivot point – before today’s London close. The long trade defined by those resistance levels produced 60 pips in profit.
Following several hours of selling pressure on the world’s reserve currency during the Asian and European sessions, the US dollar stabilized against the major currencies during the first 3 hours of today’s New York session. A double bottom on the USD/CHF currency pair at a weekly pivot point and a key Fibonacci retracement level set the stage for a 50-pip counter-trend trade at London close.
As London opened today, the longer term 4 hour and Daily charts gave us every reason to believe it would likely be a difficult London session, since we were quite sandwiched between support/resistance on several pairings. As London was opening however, we were able to identify a price trap/triangle on the EUR/USD that looked promising if we could get a break. Using trap projections we were able to determine before ht ebreak a potential of 75 pips or so either way once a break would occurred before hitting any meaningful support/resistance to counter the move. Sure enough we did get a breakout of this trap just as London money entered the marketplace. Once the break occurred, all that was needed was a great deal of patience awaiting the high quality pullback to an overlap of several ema’s around the 50% Fibonacci pullback zone, along with correlation with the USD/CHF hitting it’s ‘Fib’ and 200 ema at the same time. In this video I break down, in great detail how we put this trade plan together start to finish, and how we then executed our entry into the long around the 1.3258-60 area. While this trade offered us a quick pip total that allowed for us to move our stop to break even, it did take a couple hours to ultimately reach our objective before pulling back half the distance it had gained into the open of the New York session. Overall the market was very difficult tonight but patience and discipline won the day, and this trade paid nicely.
FXBootcamp London Currency Coach-
Christian Stephens
Pre-London kicked us off with some weak Euro and weak Swiss Franc against the US Dollar. Just as we opened our London session we found ourselves bouncing off a shorter term trend line, and primed for a perfect Fibonacci retracement overlapping with several layers of additional resistance in the form of various ema’s etc. around those same Fib zones. In this video we highlight in extreme detail how we were able to plan and execute a high quality, low risk vs. high reward short setup on the EUR/USD not once, but two times throughout the London session. Also, if you did not take these Fib entries right off the bat, each entry offered very good short term confirmation for even the most conservative trader to believe in the move, along with correlation with the USD/CHF and clear EURO weakness as witnessed in EUR/GBP re-breaking the .9000 level. I spent some extra time in the detail on these video’s, because quite simply you will not find a Fib pullback entry with more clues, and confirmation than this very often. If you are having some issues understanding pullback trading this video should help a great deal with a prime example. Ultimately the EUR/USD fell over 250 pips today and these two entries offered a prepared trader a couple clear opportunities to catch a significant part of the move. Have a super day!
FXBootcamp London Currency Coach-
Christian Stephens
Weakness in the US dollar set the stage for multiple trades on the major currency pairs during today’s New York session. A short trade on the USD/CHF netting 75 pips, then a long trade on the EUR/USD good for nearly 60 pips, were bookends for a quality technical trading session on the majors.
Strength in the U.S. dollar and Japanese yen had been the operative theme since Monday’s London session open. Although the absence of a major U.S. economic news report and the inauguration of president-elect Obama put a damper on volatility, the risk aversion theme continued during today’s New York session,. A 50-pip trade on the USD/CHF and 100-pip trade on the AUD/JPY highlighted an otherwise challenging session.
We found ourselves in a rather choppy pre-London, into London open on the majors today. With Eur/Usd in an extremely volatile, however clearly defined channel/range for hours upon hours. So with the exception of a few shots playing the channel top and bottom, it was a 100 pip range after all, it was time for some waiting. Simply set some alarms, build some trade plans around your bias for when it breaks, and await the break of the range. Finally not too long after the London market fully opened up, we busted through the range. The break was so quick and powerful, that it never truly did offer a pullback entry of sufficient levels to fit within a conservative trade plan. In this video we show that even when the bulk of the initial move was missed by many, using nothing more than Patience, Discipline, and a 38.2 Fibonacci retracement, we were able to insert ourselves in an extremely power move south on the Eur/Usd at a high probability area of a continued drop, and ultimately bag 150′ish pips on the second wave of the move. Fantastic way to wrap up the London portion of our 40 hour FXBootcamp trading marathon. Have a great weekend folks!
FXBootcamp London Currency Coach-
Christian Stephens
After a mostly flat London session for the major currency pairs, last week’s trend of US dollar weakness continued during today’s New York session. Classic range breakout setups on the USD/CHF and EUR/USD materialized at the open of the session. The moves, which ended with the arrival of the swissie at the overlap of a daily trendline and the S3 pivot point, produced 130 pips on a swissie short trade and 200 pips on a euro long trade.
New York traders face a fork in the road – strong or weak US dollar – at the beginning of each day. Fortunately, multiple technical clues materialized on the currency charts during today’s London lunch, and all signs pointed down the same path: Weak USD. A long trade on the GBP/USD saw limited upside due to relative weakness of the British pound, but lack of strength was not an issue for the Swiss franc. A short trade came together on USD/CHF after the bounce at the central pivot point during the hour prior to today’s New York open. A reward of 110 pips was waiting for those traders who took profit at the M1 pivot point.
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