Forex Trading Strategies – Forex Update: Watching the News and Selling EURUSD
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And also, a real quick peak at the news calendar. There is a lot of news first part of the New York trading session today. We’ve already had the bid rate for the Euro. We’re looking at 8:15AM Eastern US time for ADP non-farm employment change out of the US. At 8:30AM Eastern US time, about 35 minutes from the recording of this video, we have ECB press conference, unemployment claims. We have the Bank of England, Governor Carney speaking at 9AM. So, until that 9AM hour, we could see quite a lot of volatility in the market. It’s important to use appropriate risk strategies in all situations and maybe even prudent for you to stay out of the market until we get past all of this volatility.
All right, let’s jump right into the market. First off, starting here on the USDCHF. That was yesterday’s trade analysis and trade suggestion, but really the market hasn’t done anything since we’ve suggested the trade. We were looking to buy on dips into support, the bottom of the range, and that’s all it’s done. It fell down to the bottom of the range and now has sat here for the past multiple hours, waiting for some more momentum. I guess the ECB could be the momentum we’re looking for today. We could be looking at the Bank of England, Governor Carney having some influence. The unemployment claims out of the US. There’s a lot of news. ADP non-farm, like I said. That could influence this currency pair.
So, definitely watching that news, but really, again, the market hasn’t done much of anything since we got into the trade. You could see the trade going down there. 0.9885 was the entry. We’ve seen it be a little bit negative. Came pretty close to the stop loss. Now we’re back, close to the entry. Let’s go ahead and zoom it into the four-hour timeframe. Again, take a look at what’s happened over the past multiple hours. It just came down to the purple zone and just sat down. Didn’t do much of anything since getting down here inside this purple-shaded area.
So, obviously what we’re looking for today is the buyers to step back in for us to get some more bullish momentum. Send this back up towards the green-shaded area. That’s the first obvious thing that we’re going to look for here for the USDCHF today. And of course the risk, and it has been the risk since yesterday, is that it changes and goes back underneath that purple-shaded area, the 0.9865 or so level. So, as long as it’s within the purple zone, I’m looking for buying opportunities to target the green zone or higher. If it breaks the purple zone, of course we have the stop loss to protect us in case the market goes down instead of up, but currently still holding the buy from yesterday since the market hasn’t done much since yesterday.
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