Hello traders. A rare no trade day for the Pipsters. We are carrying our USDCAD trails from last week, and were busy managing those.
We headed into London with interest in EURGBP. Here’s the commentary heading into London’s open.
Reasons for Consideration:
The world pretty much thinks the wheels have fallen off this Euro, but what we’ve learned time and time again… when it looks like it’s dead, it’s often the best time to consider entries.
Both Cable and the Euro are up against it against the US Dollar, and for that reason we are addressing the EURGBP.
A look at a 4h chart shows us that we’re nearing a region that has been responsive initially as a resistance, and then turned to support. Stop hunters will look to test 8835.
Reasons for Concern:
It’s a Monday, and Mondays and Fridays we tend to dislike relative to midweek. This is purely a statistical matter when we address our overall log. That said, keep in mind that money flows are often thin on Mondays. This can lead to heavy spikes.
As can be seen, the market didn’t bother testing lower before running higher. We looked for opportunities to sell the pair into those ‘projected’ short stops, but the market was not responsive at levels. Plus, with US Dollar strength in USDCAD, we were more than comfortable to manage that trade.
There is a reason we monitor several pairs. We don’t have time to go through 10 pairs in Premium previous to an open. I hope our followers understand that. The charts ought to work as an educational tool to see exactly how we approach the markets. We design plans for multiple pairs. If price does as we expect, we initiate entries. We don’t get creative and make up on the fly responses to price.
Remember our mantra: When trading with weight, as we do… first do no harm!