SOMETHING TO LOOK FORWARD TO - Ok so Monday was a lesson in market psychology and discipline. Today must be the day where we get a trade set-up right? Well, I'm not so sure. We have had a very nice run since September, with volatility picking up in a big way. Now it seems the market is pausing to catch its breath before moving again. I still think there is plenty more action to come, and we are just going through a few quiet sessions before it all picks up again. It is critically important during this time to sit back on those hands and wait. Do not force anything because you are anxious to get involved. But let me at least wet your appetites a bit, so you have something to look forward to.
ONE - Two trades I am looking at right now are USDJPY and EURCHF. I have spent a lot of time talking about EURCHF and perhaps Monday's bearish price action could be setting the stage for that key break below the 2014 low from September at 1.2045. I believe a move below 1.2045 will put the SNB in a position where it is forced to act and this could open that major surge in EURCHF that everyone has been waiting for. So look for an opportunity to buy into an oversold EURCHF market on Tuesday (that is trading below 1.2045). If that happens, buy aggressively and then just sit back and hold that trade. You need to consider the possibility of a stop hunt below 1.2000, and so, make sure your stop-loss for this trade is somewhere below 1.1900.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
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