At week's beginning, the suggested short entry was long anywhere or 1.2769. Yesterday USD/CAD traded to 1.2894. Good example to the concept overbought trades to deeper overbought. Opposite overbought is trade oversold to more severely oversold.
Yesterday's USD/CAD example was seen in a day trade however overbought to overbought and oversold to oversold applies easily to weekly trades. The worst market conditions applies when deeper oversold and overbought trades to deeper oversold and overbought. Doesn't happen often but on occasion, its happens.
Yesterday's USD/CAD jump was an enormous opportunity for an extra free money trade and add to weekly profits. USD/CAD day trade top yesterday was 1.2866, USD/CAD traded to 1.2894. Already 28 free money pips exist.
Opportunities such as USD/CAD yesterday doesn't trade often but the key is to recognize it when it happens and the market will offer free money trades.
The method is add 1 lot short. Then 2 choices exist. The first is exit at breakeven at 1.2769 with 125 pip profit or hold the 2nd lot to target. Hold to target means 2 lots are running and 125 pips profit is already banked. Holding 2 lots doubles trade profit.
USD/CAD traded so far to 1.2741 lows. Hold the 2nd lot now runs +153 pips. The 1st lot profits so far 28 pips for a total of 181 pips. And the weekly trade barely started.
CHF/JPY traded to 3 month lows at 117.51. The weekly target at 118.92 traded to 118.34 so far and runs +80 ish pips.
As addressed in weekly commentary, CHF/JPY targets 115.66 from 122 highs in June. This means continue to short tops to 115.66. Short tops applies to JPY cross pairs. GBP/JPY for example traded to 155 highs in June and lows achieved 149.15 or 600 ish pips.
Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.