Us dollar future looking for breakout l Spx look to start its bearish rally
Us dollar future looking to break as talk of rate hike in december fuel the market
Talking of us dollar, we see a strong spike by us dollar which could be ready to break the recent one and half year sideways correction. keeping in mind last federation meeting was quite crucial as all the officials thinks of december rate hike is on the cards most probably and this lead to rally in us dollar futures immediately and since then there is no stopping as now we could see a rally towards multi year high of 102.00
How traders should look to trade pullbacks
Forex trader eyeing this rally and looking for small pullbacks and it could be test of strong trading levels which hold previous rally or pullbacks to ema and small risk opportunities which can give way to strong rallies in coming future.
Speaking of Us dollar one can track the main driver of us dollar future i.e Euro dollar and as we break below 1.1040, and now we can look for retests and rejection of this level and keeping in mind the risk involved we should keep the stops very small and look to drive the most part of this downside rally which is eyeing 1.0750
Forex traders should be good enough to manage risk in volatile market
As a forex trader, we should be ready to take this type of risk and small risk trading strategies should be in our database as we must test them from time to time and make use of them when we need them most.
Technical trading is the way we can control our emotions and even in this type of tense situations where moves are happening so fundamentally, we should rely on our trading strategies for entry and risks, because rallies or statements can be revrsed anytime and we can caught on the wrong side of the market, so preparing good money management strategies to tackle with risk is a quality of a good trader.
Pullback trader should look for caution retests at historical levels and rotation centers
I have prepared few checklists where I look to spot currencies which are trending strongly in the one direction and then I start looking for possible entries with small stop and it can be a historical level, rotation center, fakeout or even test of strong supply level with caution or with compression.
Forex trading is about timing and news can never help you ride strong rallies and news cant be a big driver all the time and the one very good example is canadian crosses which are in strong downtrend specially gbp/cad and also usd/cad which has corrected from 1.4700 to 1.2600 in no time even after strong bullish momentum during past few years. Reason being the crude which has recoverdd 50% from its low. I beleive nlw its time foe euro crosses to come under pressure soon, specially eur/cad which has somehow manage to avoid its bearish startoff. Now I would be watching the retest of 1.4730 level and from there I would like to see new downside presure towards 1.4100 level and I would update the blog with the charts of eur/cad and spx during this weekend.
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