1. EURJPY (Daily Chart) – Power Pivot Trade Short 10.06.2014 – With the lack of follow through to the upside last week from the European Central Bank statement, the EUR weakness continued this week. This particular foreign exchange trade provided all the clues necessary for a high probability, continuation trade short. A healthy retracement to the 50ema and a significant horizontal level of resistance. There was also clear hidden divergence presence alongside Monday’s significant reversal outside seller bar. Taking an entry on the break of Monday’s low with a stop above the high gave efficiency in the entry and the trade sits up +1.6% with stops at break even.
2. CHFJPY (Daily Chart) – Power Pivot Trade Short – 10.06.2014 – A very similar currency trade to above in regards to correlation of clues all coming together to meet the criteria for a high probability trade. A soft horizontal level providing resistance alongside the 50 moving average, significant stochastic hidden divergence, fib retracement and a key reversal inside seller bar on Monday. The low of Monday was broken on Tuesday triggering in traders with a stop above Monday’s high. This is where this trade provided a better reward to risk as the entry bar was much smaller than the eurjpy trade. The market broke strongly lower, reaching the previous swing low where traders took profit of around +2.4%.
3. EURAUD (5min Chart) – Pivot Trade Short 12.06.2014 – With the AUD heavily stronger than the EUR right now there has only been one direction this pair has been heading, short. On the daily timeframe we were well into P1 and thus finding it difficult to get an efficient entry. Enter the pivot trade. It took some waiting but finally Thursday morning provided the first setup, hitting a +1.06% target in a few short minutes.
4. EURCAD (Daily Chart) – Power Pivot Trade Short – 09.06.2014 – As you can now see there is a theme running through these forex trades – Euro weakness. The ECB statement last week initially didn’t look like it was effective but the market has been selling Euro’s most of the week. Another strong technical setup presented itself last week with a very appealing seller high test reversal bar in conjunction with horizontal resistance, a fib retracement, hidden divergence and a good reward to risk down to the previous low. The market duly obliged on Monday, sending the pair lower, triggering entries below Friday’s low (stop above the high) and this move continued throughout the week, taking out the previous low as well as allowing traders to bank a healthy +1.4% profit.
5. CADCHF (Daily Chart) – Power Pivot Trade Long – 09.06.2014 – The daily chart has been in a nice healthy uptrend since mid-March. Off the back of a new high formed at the end of last month, price had retraced back to a horizontal level of support as well as the 0.382 fib level. The hidden divergence on the stochastic also made good viewing as this gave confidence a strong move higher was likely and as a minimum the previous high would be taken out. Last Friday gave the most powerful clue of them all, after the big selling day on Thursday there was no follow through. Fridays bar held and finished as a strong inside buyer bar, hinting buyers were holding the price up. Monday, buyers dominated, breaking the high of Friday where traders got in (stop under the low) and the market rallied higher taking out the previous high for a +1.9% trade.