Forex Tips and Tricks

Dollar Remains Lower as Government Impasse Continues and Other Top Forex News

The U.S. dollar fell against most major currencies on Friday, as the government shutdown continued for a fourth day, with no sign of a breakthrough. There was no data released today due to the shutdown. The U.S. Labor Department was scheduled to report today, but said yesterday that Septembers report will not be released as normal and failed to set a new release date. Markets are also concerned how the U.S. political deadlock will impact negotiations......

EUR/AUD “Could Fluctuate” Are any other traders sick of analysts whose view is that a currency “could fluctuate”? When you read or hear “on the one hand…..but on the other hand” the response has to be “thanks Einstein”, because what the analyst is really saying is that they have no clue, or no cojones – or both. However, traders don’t need a directional view to trade where they recognise a good reward to risk set up. The EUR/AUD 4-hour chart is......

The JPY had a very active Asian session and began to pull back hard in the UK session. After it bounced at the previous day's Asian session low (Hint) an entry is found. The stop loss was 14 pips and the idea was to get to the Asian session high for a retest. As price moves up, we remove any risk from the trade and protect some profits. This is critical to your trading success and peace of mind as a trader. When price......

An overall theme of USD weakness was evident throughout today's trading. The EUR, GBP and CHF took off without us. With the NZD having a much larger negative Trade Balance than expected, I was curious to see if I could find a reversal trade and ride it to the Asian session high or higher.The pair eventually set up - consistent with the USD weakness theme that prevailed. An entry long is taken - allowing for a 17 pip stop loss and......

A fairly light news session to begin our trading week. The JPY moved down after an initial surge higher as the UK traders trapped breakout longs and stopped them out. After a bearish reversal candle, and lower high, a short entry is taken. The stop loss is 13 pips for a possible 74 pips to our Target 2. This a great Reward to Risk ratio and stops of 15 pips or less are very attractive to us.Price moved down but stopped short......

The AUD continues down retracing the post FOMC reaction.Once again as the UK session gets underway, there are no buyers above the Asian session high. Price begins to move down and penetrates the Asian session low. We wait for a retracement and find an entry with a Reward to Risk of greater than 3:1 to our Target 2. There is no significant US economic news that we need to be concerned about. Price makes its way down to our......

After the FOMC announcement, the AUD moved up and today it moved back down. It's good to be aware of the fundamentals, but it's more important to be able to read price, and exercise sound money management. This involves limiting risk with small stop losses and ideally a Reward to Risk ratio of 2:1 or better - depending on the time of day.Looking at this particular setup, it was clear that you did not want to be a buyer above the Asian......

The trading in advance of the long awaited September FOMC meeting has had currencies in very tight trading ranges. The FOMC market buzz is for the tapering of the total monthly purchases of USTs and MBSs to be rduced from $85B down to $75B a month, and remaining dovish on interest rates. Traders are also talking about the possibility that the FED may adjust the threshold rate for unemployment lower.I was not expecting any trades......

NZD moved up nicely after initially testing the breakout traders' conviction. As price moved up with news out of the way, the initial stop loss is moved up to plus one. As price continues to rise, profits are protected by structure. Price moves through both our targets in one candle. As price pulls back, the trade is closed at Target 2.Be aware of FOMC tomorrow during the US session.Good luck with your trading!Back tomorrow......

A quiet news session early on... followed by an active US news session. After the Preliminary U of M Consumer Sentiment figure was released, the NZD reversed and an entry short is taken. Price penetrated the Asian session highs, but bounced at the session multi-pivot line. As price indicated there were buyers there, we exit as price climbs to the Asian session high - for a modest gain.Trading is a very difficult profession to master.......

The JPY set up nicely after the US Unemployment figure was released. The JPY has been making a series of lower highs and double-topped early in the UK session. It traded in a fairly tight range awaiting the US news. Once the news was out of the way, it set up nicely allowing us a 2:1 Reward to Risk entry to our Target 2. Price re-tested the Asian session lows once before dropping to Target 2 where we exit the trade.There......

The JPY is a pair that I haven't traded in a long time. It's a major pair and traders will find that it moves well in most sessions. A European bank trader has been sharing with me a model used for trading the JPY. It appears to work very well, so I'm back looking for setups in the JPY once again.After a series of lower highs a short is taken, with a 17 pip stop loss above structure. Price moves down and bounces off the Asian......

A very light news session, but we were able to find a trade on the NZD. The NZD and the AUD both reversed upward at the same time. The Kiwi set up nicely for us as it bounced off a technical level allowing us to enter long with an affordable stop loss in place beneath the Asian session low. This met our minimum criterion of a 3:1 Reward to Risk to our Target 2. Once price rose above yesterday's high, we raised our stop......

A long lackluster session with a very late EUR trade setting up. The EUR attempted to get above the Asian session high but was unable to stay there. It finally pushed hard above - well into the US session with all the economic news behind us. A stop loss under structure enabled us to have a better than 2:1 Reward to Risk ratio... which is our minimum once the US session is underway.As price moved up we locked in profit and eliminated......

Overall Friday was a light news session lacking high impact potential economic releases. The first part of the UK session was lacklustre, but as traders reacted to disappointing US figures, the EUR began to move down. Price moved slowly down re-testing yesterday's low before dropping to our Target 1, where we exit... when price bounces above.Summer draws to an end and Monday is a holiday in North America. It's been a good summer......

The majors didn't offer many attractive setups to my eyes during the UK session. A series of lower highs made for an appealing setup in the EUR, but he gains were modest. As price reversed to re-test the Asian session lows once more, we are closed - protecting our profits. One thing a trader never wants to do, is let an acceptable level of profit get away and turn into a loss. In this case, we had a wicky candle which warned......

An active session as the UK traders returned from a long weekend. Initially the UK traders pushed the CHF down and quickly reversed it with the German IFO Business Climate release, but the Asian session high is not challenged. Price fades but cannot get above the Asian session high again. A triple top forms and the US traders begin by reversing the market down. Although I hesitate to enter trades in the middle of the Asian......

The GBP had economic news to digest, then made its move lower. It's always best to wait until the news is out of the way and look for the trending move to begin. Let price tell you when it's underway. Do not trade based upon the economic news outcome and do not chase price. After the news candle, we waited and look for signs. After 2 wicky candles a very bearish engulfing candle followed. Sellers were in charge and an......

The UK traders pushed the EUR down and the US traders pushed it right back up. Positive economic news numbers out of Germany and the EUR moves down. Negative unemployment numbers out of the US, and the EUR moves up...hmmm. I hope as traders that you do not trade based upon the economic news numbers themselves... but you must be aware of the economic news releases pending and how significant they may be to the market in terms of potential......

To trade or not to trade in advance of the FOMC meeting minutes? The NZD has been trending down all week and after rising in the second hour of the UK trading session, it could not stay above the Aug 13th low. As it tried, sellers entered and the previous hour's range is completely taken out by a bearish candle. This was an attractive setup and met our minimum Reward to Risk ratio of 3:1 to our Target 2. Price dropped and the trade was......

A very light news and lackluster trading session until the US session got underway. After the Prelim U of M Consumer Sentiment figure was released, the EUR began to drop. An entry short is found as price closes below yesterday's high with a 3:1 Reward to Risk to our Target 2. Price settled at the Asian session lows and the trade is closed.It's been another very good week of summer trading.Back on Tuesday if can find a trade.Good......

Both the AUD and NZD were fairly active during the Asian session. My preference when this happens is to look for the momentum to reverse and find an entry. The AUD had difficulty staying above the Asian session high...meaning sellers were entering above. After the second close above, a reversal sets up with a bearish candle which closes below the range of the previous 2 hours. Price moves down where it consolidates just......

An almost identical setup to Friday's trade with more pips as price moved closer to our targets. We don't trade Mondays, but the past 3 sessions, the EUR has given a very clear 3 Drives pattern. Today's setup was 3 pips short of our desired 3:1 Reward to Risk ratio to our Target 2, but the pattern of the setup was the same as Friday's...so why not go for it? Trading is not easy but when the setups are so clear, it makes trading......

A familiar pattern set up for the EUR in another light economic news session. The UK traders began their session by quickly pushing price below the Asian session low, inducing breakout shorts, then pushed the market higher to run stops. They then completed the "wash and rinse"... doing it a second time. A very wicky candle at the Asian session high was created as sellers entered pushing price back down. With enough orders......

NZD moves higher in the US session as traders go long above yesterday's high. The Kiwi set up nicely making a series of higher lows. We are willing to accept a 2:1 Reward to Risk to our Target 2 once the US session begins. We look for a 3:1 or better R/R during the early UK part of the session... before the US traders are active. Once the US session is underway this becomes a 2:1 R/R because we only have 4 hours left.It is never......

An overall theme of USD weakness is evident in the charts today. The NZD set up nicely an hour before the US traders began their day. The NZD made 3 attempts but was unable to close below the Asian session low. A bullish candle followed and an entry is taken with a 13 pip stop loss. As the US session was about to begin, the stop loss is moved up to plus one pip - in the event that US traders push the market back down.Price begins......

The GBP set up shortly after the US traders began their day. There was a clear rejection at yesterday's low as sellers entered pushing price down. After a second close below the Asian session low, an entry is taken. Price tested the Asian session low once more before dropping to its daily low. As the CB Consumer Confidence news was about to be released, price continued to drop. We protect a good part of the move in advance......

The EURGBP set up nicely for us and produced a favourite reoccurring pattern that we look for while in a trade. After putting in a wicky candle low, we patiently awaited further signs that price would move up. With a very affordable stop loss, we enter the trade and vigilantly watch price as it reacts to each of the levels marked on the chart. Price continues upward before finally stalling at the Asian session highs. We are......

The CHF set up nicely for us after the European economic news was out of the way. It clearly had difficulty staying above yesterday's high and began to drop. When price went below the Asian session low, approaching the session low, with the US traders about to start their day, we tightened the profit stop to lock in 25 pips of profit. US Unemployment and Core Durable goods numbers were both due out in 30 minutes too. As the US traders......

Another very light economic news session with a mild USD weakness tone so far this week - hence the gold talk. The UK traders moved the CHF up and the US traders bring it right back down. We were hoping for a larger move either direction, but with little news so far this week, it didn't happen.As the US traders start to bring the CHF down, an entry is taken when normally there would be lots of US economic news. The stop loss is......

A very light news session to end the week and an overall subdued trading session - with tighter ranges being put in by most of the majors. The GBP set up requiring a stop loss of 19 pips for a potential 70 pips of reward. The setup is a familiar one, but the reward didn't pan out. The UK traders pushed price above the Asian session highs twice..each time pulling it back. After the second pullback we enter long hoping to get......

Modest gains in CHF before Mr. Bernanke's speech today. The key here was to find a comfortable trade setup, keep the stops tight and get out (to be conservative) before Mr. Bernanke's speech - which can cause enormous volatility. The CHF began to move up with its inverse...the EUR moving down at exactly the same time...confirming the trade. The long on the CHF required a 15 pip stop loss and in retrospect the EUR was the better......

A session of USD weakness followed the economic news releases. The CHF and GBP (not shown) set up for very nice trades. After the European news, it was clear that the CHF could not close above the Asian session highs (hint). Price dropped to near the Asian session low which set up our trade. We had further confluence with a tool we use and with a stop just above the session high, we had a greater than 3:1 Reward to Risk ratio......

GBP produces some fairly quick pips with USD showing strength. Very light news session in advance of the US session commencing. The GBP has had an increasingly large trading range recently. This trade setup had the makings of a much larger move than what manifested.After making a series of lower highs, the pair began to move up and down as the UK traders took charge. After breakout shorts had been tested twice, an engulfing......

AUD moves down once the US traders begin their session. Very little economic news in advance of Mr. Bernanke speaking and the FOMC minutes due out shortly. This will have the potential for extreme volatility.The AUD put in 2 lower highs early in the first half of the session and proceeded downward. A modest ranging session until the US traders joined in.A trade short with a greater than 3:1 Reward to Risk ratio to our Target 2 is......

EURGBP produces a greater than 4:1 Reward to Risk ratio setup following the UK economic news. The pair explodes upward after the UK economic news is released. When this type of reaction occurs it frequently (not always) will provide an opportunity for a reversal move. In this case, there were a confluence (not shown) of signs that the pair was topping out. My students should be able to recognize at least 4. Trading is an extremely......

A favourite pattern set up during the UK session. As the AUD continued to set lower highs, a short entry is taken. This trade is greater than 4:1 Reward to Risk to our Target 2. With a stop just above the reversal high, we first attempt to make it through the Asian session low. Price eventually closes below it, then reverses with a wicky candle. When price begins to move up and closes bullishly above our Target 1, we......

UK traders move the EUR up and the US traders move the EUR down! A fairly light economic news session ends the first half of the trading year.The EUR reversed off its session high with a big wicky candle. After the close of the next candle a short trade sets up. An initial stop loss half way up the wick, creates a better than 3:1 Reward to Risk to our Target 2. Price penetrates through the Asian session high, before testing......

For the second day in a row the AUD sells off in the US session at the same time, which today corresponded with the second round of US economic news. As the Pending Home Sales number is released the AUD began to rise and is quickly reversed by sellers - in a zone which had been evident all session.A short trade is taken as price retreats below the previous candle's low. Two tools that we use made this trade setup very attractive. As......

The CHF had the makings of a good trade, but the momentum faded quickly. Well into the US session, a long setup is found with a better than 3:1 Reward to Risk to our Target 2. We enter the trade with ninety minutes left in the UK trading session. The trade moves up and after the European traders finished their day, the momentum appeared to leave the market. We are closed when price hits our "profit stop" for 20 pips.Good luck with your......

NZD set up for a short trade after the UK economic news releases, and in advance of ECB President Draghi speaking. After the UK news, the EUR, AUD & NZD turned down and the CHF turned up. After a vertical move up when the UK traders began their day, the NZD came down vertically making for a quick trade. Although it would have been nice to have reached the Asian session lows before President Draghi spoke...it wasn't to......

The AUD produced one of my favourite setups. When the AUD couldn't take out the Asian session high after an active Asian session, we enter and attempt to get to the low of the Asian session. As price moves lower we take the risk out of the trade and begin to lock in profits. Ideally we want the AUD to drop to our Target 2 level, but it must make it through the Asian session low, yesterday's low, and Target 1 before that can happen. Price......

The FOMC statement yesterday created lots of anticipated volatility. This was followed by more subdued markets today - despite lots of economic news releases.The CHF set up nicely for us, but it had a lot of difficulty penetrating yesterday's high and the Asian session high. Once it did... buyers entered the market pushing it back up as evidenced by the candles with the long lower wicks. If price can't go down, and long wicks form,......

Lots of volatility following lots of economic news and overall the news has been positive. Following the US economic news, buyers entered the EUR creating an opportunity for a long trade. Price quickly moved up stalling near yesterday's high. The profit stop is moved just under the Asian session high, which is not subsequently tested. Wicky candles appear at the session high, and the take profit level is adjusted upward. Price......

The EURGBP tends to move slowly and it doesn't have the range of the majors most days, but it can be a very tradeable pair. It tends to be less volatile than the majors too and at times trends very nicely.This trade set up producing a familiar entry. The pair moves a few pips against us for the first hour, then begins its descent - stair stepping down. We close the trade just above the Asian session low as the UK traders end their......

The EUR moved up nicely once the US session got underway. This trade set up with a better than 4:1 Reward to Risk ratio to our Target 2. At this time of day, we will take a 2:1 R/R... so this trade setup was very appealing. After the first candle, it didn't look nearly as good. Fortunately by the third candle after entry, it was up and away, closing bullishly into the Asian session. After price tested and retested the......

The GBP chopped sideways most of the session until the US traders began their day and like the EUR it began to climb with USD weakness. After 2 very bullish candles an entry is found with a stop below the Asian session lows. This stop is progressively moved up and the trade is closed at Target 2. As price began to climb, it hit the Asian session high before backing off and closing at yesterday's high. We removed the risk from......

The charts of the majors have been somewhat erratic for trading this week...possibly due to the US NFP pending release tomorrow. It's always best to look for high probability setups and keep stop losses small. I always like to find a setup on a chart that makes sense to me and allows for a modest stop loss. The EURGBP looked like the best option during the UK session and resulted in a modest gain.Tomorrow is NFP Friday and......

The CHF was fairly subdued before the US ADP Non-Farm Employment number was released. As it did not take out the Asian session high and made a series of lower highs, an entry short is found. Unfortunately, the market went sideways for a couple of hours and all we could do was remove the risk from the trade by placing the stop loss at plus 1 pip.The news release created a sudden drop through both yesterday's low and the Asian session low,......

Very large moves yesterday followed by more subdued moves today. The NZD set up after the US session got underway. The NZD just made our 2:1 Reward to Risk ratio minimum to our Target 2. We like a 3:1 R/R during the UK session, but with a maximum of 4 hours of trading time left in our trading day, once the US session is underway - we will take 2:1 R/R minimum.Once the US Trade Balance economic news was released, the NZD began to......

Forex Tips and Tricks

Dollar Remains Lower as Government Impasse Continues and Other Top Forex News

Top Trade Idea For October 4th, 2013 – EUR/AUD

A large move down for the AUD during the Asian session after the RBA rate statement.

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