As an example, I have spent an hour or so analyzing the markets so far this week. On Sunday I usually do this, before the market opens on Monday. I do my homework by checking my charts, catching up with any financial news over the weekend and I make my trade plan for the week ahead.  Once I have my plan in place, I then set orders for any currency pairs that I wish to trade at the market open. We need to wait for the market to open before orders can be set, since orders cannot be placed on the platform over the weekend while the market is closed. Once my order is set, with a predetermined stop loss and take profit (target), I can then walk away from my trading platform and let the market take it’s course.

These are the current orders that I placed at the market open this week and why:

GBPUSD
Long
Daily Chart
Entry:  1.6540
Stop Loss:  1.6502
Target:  1.6822
Risk / Reward Ratio:  1:7

We are still in a channel with price looking like it will once again bounce off the lower trendline. I have my order set to buy at 1.6540 as this is also the area of 61.8% fib and 55 ema. My stop loss is set for below the 78.6% fib and the trendline. My target is set at the previous high. As you can see, this has an excellent risk to reward ratio of 1:7. So a “must set” order in my view.

You may also be able to see my trade I placed from last week. I bought after the previous touch of the trendline and have now closed half the trade with an 80 pip profit, leaving the balance to run to my ultimate target, with potentially an overall 317 pip profit. Stop is now moved to entry, meaning this is now a risk free trade

USDCHF

Short
Weekly Chart
Entry:  0.8980
Stop Loss:  0.9085
Target:  0.8700
Risk / Reward Ratio:  1:2

As you can see from this weekly chart, there is a trendline in place since the middle of last year. This trendline is also intersecting with a support / resistance line (which also happens to be a whole number) at 0.9000. Another reason to take this trade around the 0.9000 price is that it is also 61.8% fib retracement. Therefore, multiple reasons to set an order for this trade. Set and then forget.

USDJPY

Long
Weekly & Daily Chart
Entry:  102.80
Stop Loss:  101.85
Target:  105.23
Risk / Reward Ratio:  1:2.5

With a confirmed triangle break on the daily chart, I am hoping to catch the move on the pullback. In anticipation of this pullback, I have placed an order to buy at 102.80, which is just above the 200 monthly ema, & 55 daily ema. I have placed my stop loss just below the bottom line of the triangle with my target at the recent highs.

EURGBP

Short
Weekly Chart
Entry:  0.8337
Stop Loss:  0.8410
Target:  0.8090
Risk / Reward Ratio:  1:3

The EURGBP on the weekly is also in a channel. I have my order set to sell this pair at the area where the trendline, 200 ema & 55 ema intersect – ie. multiple reasons. My stop loss is placed above the trendline & above the most recent highs. My target is set for the lower trendline of the channel, which also happens to be a previous area of support & resistance.

Let’s see what price has in-store for us on these currency pairs over the next week. If any of these areas fail, I will be able to initiate my back-up plan, however, the charts shown here are my 1^st choice trade options.

Happy trading during your 4-Hour work week!

Jackie

The post Forex Trade Plan – Week Beginning 7 April 2014 appeared first on View from the Forex Office.....

Which pairs do I have on my “gift list” leading up to Christmas? Check them out below…

EURJPY
Monthly Chart
At significant level 138.15
Buy above this level & sell below

Price is currently at highs not seen since 2009. This is hugely significant and I am certainly expecting a reaction at this level. I will wait for a close above this level to buy, or if price fails at this level I will check smaller time frames for reasons to take a counter trend short.

USDJPY
Monthly Chart
Approaching monthly 200 ema at 103.00
At significant level 101.65 which goes back to April 2009

Similarly the USDJPY is approaching huge levels like the EURJPY. I will conservatively wait for a clear close above the 200 ema (the green line located at 103.00) to take a trade long. Alternatively, if price fails at this level, or earlier at the 101.65 significant level, I will look on smaller time frames for reasons to short.

EURGBP
Monthly Chart
Short below 0.8300

This pair is in a clear downtrend, so I will look to short if price closes below 0.8300, which is previous support and is the 55 ema. Once price closes below this level there are no road blocks in the way, so I expect price to retest the 0.7755 area, potentially some 545 pips profit. Alternatively if price fails to close below 0.8300, look on smaller time frames for an entry to go long and catch a bounce back up.

USDCAD
Monthly Chart
Long above 1.0650

Price is approaching a level not seen since October last year. If it breaks this level at 1.0650 and closes above, I will be looking for entries on smaller time frames to enter long. There is nothing but air above this level, so price has the potential to get all the way to 1.1650 ie. 1,000 pips!! How would that be for a welcome New Year’s gift?

Enjoy the lead up to Christmas and here’s hoping we can all get a share of the pips for some welcome holiday spending money

Jackie

The post Santa Claus Rally appeared first on View from the Forex Office.....