Market analysis and insights on Forex & Commodities!

Forex Trading | EUR/USD – Trend Channel Day

 

This is a 5-min chart of the EUR/USD using the CMC Markets platform, and offers a glimpse of how I trade with 5-min charts. Price action is useful and universally applicable because it can work on most counters and most timeframes, even if the products do not have volume. 

This was quite a decent trading day, with 1 scratch trade and 3 winning trades. I started trading at 3pm, which is the time when European markets turn active, but had to end the day early (closed out everything by 6pm) because of dinner plans. 

Today was pretty much of a ranging day, which was why I employed a trend channel strategy, using price action to pinpoint the precise entry and exit points. The day started off with a bull flag which failed, forming the start of the channel and providing the setup for the next entry. After that, it was pretty much trading within the range.

One thing to note is that although the bull flag failed, its projected target was hit almost to the precise tick later in the day, showing that classical chart patterns can be traded in different ways, as part of a more advanced price action setup.

Program Graduates: Please refer to the Synapse Forum for real-time postings and more in-depth discussion of the setups.

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EUR/USD – downtrend channel | Technical Analysis | Forex & Currencies |

 

As expected, there was a strong selldown within the channel. Prices may rebound or consolidate, now that they are near the channel bottom.

Citbank Forex Challenge 2010

Photo with Lee Lung Nien, COO of Citibank Singapore

This year, it was once again a gruelling tough battle at the Citbank Forex Challenge. There were over 300+ teams, and only 48 made it to the finals. I am proud to announce that 4 of the 8 teams from my round that made it to the finals were from the SMU Investment Club, including the top 3. Nicholas and I topped the qualifiers again this year, unfortunately we did not fare well in the finals. However, it was some consolation that the 1st place was taken by a team comprising of my juniors from the investment club. As the research director and trainer, I am glad that the juniors I have trained under the Advanced TA training sessions have managed to perform so well this year.

Currency updates – USD/JPY & EUR/SGD


On this weekly chart of USD/JPY, we can see that the USD has not touched the 20-EMA in quite a while, and has also bounced off the bottom of the channel. Since there is still much bearish pressure, there is a good chance that it will try to test the old lows of 82.85. USD has been weakening against the Yen, which led to the BoJ intervening to prevent a further strengthening of the Yen, by buying USD and selling Yen. An overly strong Yen makes Japanese exporters less competitive in the global market.
 
On this weekly chart of EUR/SGD, we can see a double bottom trend reversal pattern, after the down trendline was violated. However, given the prior strong downtrend, the bull flag might fail and go into a consolidation instead. This might simply be a 2-leeged pullback before resuming the downtrend. .