Usually I resume my Forex trading in early January. This year things have gone a little different. The first week of the year Jan 5 to Jan 9 was very dull. The second week of the year Jan 12 to Jan 16 was too chaotic.
So, what did I do?
I waited until this week to start trading again.
A lot of new traders feel like they need to trade at all times. How can you call yourself a trader if you aren’t trading?
Well, I feel that good traders wait for the market to present them with good opportunities. Personally, I did not see very many good opportunities in the first two weeks of the year. Last week we did see one or two trades before the SNB announcement. However, after the announcement opening a trade was too risky for my tastes.
Good traders are patient enough to wait for the market to give them good trades. Good traders do not trade just because they want to. Good traders do not take risky traders out of boredom.
So, let’s kick off this first trading week of the year with some Forex price action analysis.
GBP/AUD Analysis
We just had an awesome trade today from the 1.8540 level. In the image below you can see that it was almost a perfect reversal set-up. The entry was around about 1.8515 with a stop at 1.8568 a first target at 1.8450 and a second target down at 1.8400.
GBP/AUD has been great pair over the last few months. It has given me a lot of good trades. For the rest of this week I will be looking for a long reversal from 1.8390 or the 1.8240. These two support levels are very strong and should give us a nice reversal trade if indecision forms on them.
On the long side I will be looking to take another short if indecision forms on the 1.8540 level or the 1.8680 level.
EUR/GBP Analysis
EUR/GBP is another great pair to trade. We have already seen two solid trades from it this week. I missed both the trades but some of the advanced course members caught them.
I will be looking to take short trades if indecision forms on the 0.7680 or the 0.7750 levels. I will be looking for long trades from the 0.7630 level.
Analysis on Monday
Last year the bulk of my trades formed on Thursday – Friday so I stated doing my analysis on Wednesday. As of next week I will be switching the analysis back to Monday. There have already been a bunch of trades this week that I could have shared had I put this analysis up earlier.
Questions
If you have any questions please ask below, I try to answer every question.