Giuseppe Basile, CSTA/IFTA
FibStalker Trading
Don't let news, commentary and brisk moves to "talk you out" of a good, well-timed trade
In the Forex Tokyo Open Session at FXStreet today the FibStalker has showed how not to be "talked" away from a good and well-timed trade. The opportunity and example is offered by the swing trade of the week EUR/AUD short from the 1.57 area.
The move higher we saw in all the EUR related pairs was only temporary, driven by news and emotions and not rooted in any valid participation level from Algos and smart money.
For this reason I was never worried by the move higher we saw.
Without surprise the move is now reverting back to it's anticipated course with target at 1.5230 area and EUR/AUD is quickly "undoing" the damage from the emotional FOMC move higher. Once at target I will remove the trade.
In the room I have also touched on the S&P500 and proposed a scenario if bear break the 1,797 level. If that happen we are likely to "kiss good bye" the US stock market and after a move lower we could see the last rally of this cycle.
The activity in the room continued answering attendees questions, and the USD/CAD and NZD/USD were also reviewed. The USD/CAD chart is very similar to EUR/CAD and this market will find strong weekly algos participation only at 1.3770 where the current shorts will probably end.
The NZD/USD has recently traded a large weekly long, but on the H4 the move is not certain and daily levels have not been respected. Overall, still risky and no clear setup.
Tomorrow will review our 8 markets and continue the analysis of other markets, including GBP/JPY.
Tune in at 8.00PM EST tomorrow!
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