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Today was a good forex trading day. GBPUSD is doing great, playing in the area of around 900 points. CADJPY is on the red but I still have a lot of hopes with this pair. I will explain below. Added two trades today, EURAUD SELL and GBPJPY BUY.
The Forex Setups
GBP is continuing to do well. Price went past the Kumo cloud (Ichimoku component) and is continuing well. The only hurdle seen is Chikou being resisted by price 26 days before. I believe the pair’s momentum will go past this hurdle. Will set an alert when the price gets to the nearest sell zone (pink zone). Happy with this trade, fair to say I can have an extra cookie.
CADJPY is the problem child. Price was well past the Kumo but it has ranged from yesterday’s highs and the top of the Kumo. Why my child!. It was also a nail-biting moment as I left the trade open even when GDP data was coming out at 1630 GMT+3. The data was CAD positive reinforcing my decision to stay put and wait. I believe I would have considered closing the trade if the data was CAD negative. It would have been painful as the trade was positive 200 points at some point in the morning. It hit a sell zone in the 4H zone which was clearly ignored. Waiting on a bigger move on the daily chart.
4Hr chart paints a clearer picture. This time frame shows the asset is beginning to set up a bear move. The only major indicator for this is the price has been below the Kumo cloud since 20th Jan 2022. There is also an untested supply zone (purple) that wants to ruin plans. Anyway, I have more faith in the confluence of Daily charts but will immediately review if things become bad of course.
Today’s forex trades
EURAUD. Earlier analysis indicated AUD to be 3rd strongest while EUR was 3rd weakest (8 major currencies – USD, EUR, GBP, JPY, CHF, AUD, NZD, and CAD). The trade is doing well. Flirting with 500 points as I write this post.
Took GBPJPY Buy only because the price action was good in my system. GBP was 3rd weakest and JPY was second weakest. But there wasn’t any major news on these. I figured it would be my less stress trade, considering what CADJPY had done to me. As expected the forex trade has been slow and steadily rising. Now at 300 point since I traded it in the morning.
At this point all the open trades are hovering at gains of 1% give or take a few points. Not bad for day 2 of this prop trading thing. Considering I’m forex trading with lot sizes of 0.01. (Learnt the hard way on position sizing)
That’s it, folks. Remember to comment below or on the forums. Nice Time.