1. EURUSD (5Min Chart) – Pivot Trade Short 14.05.2014 – Sentiment on the EURO was extremely weak across the board through Tuesday after comments from Bundesbank aligned with the ECB’s threat’s to intervene if necessary to keep the exchange rate down. After a day like Tuesday, it provides a fantastic opportunity to get into the first retracement before the next leg down. This came on Wednesday with a lethargic pull back to the pivot point on the pivot strategy. Traders were expecting another sinister move lower but it didn’t quite pan out this way, taking over 24 hours to hit target. It was worth the wait as traders were able to bank a healthy +1.67%.
2. GBPUSD (5Min Chart) – Pivot Trade Long 12.05.2014 – GBP had reacted sharply to the big round 1.7000 level on the daily chart and was in reversal mode having posted some choppy but visible divergence. This then allowed foreign exchange traders to take advantage of this turn in trend by looking for some short term intra-day moves. The best setup came on Monday with a pivot trade offering a +1.53% trade which, just like the EUR trade above, took some time to hit target but it was worth waiting for.
3. GBPJPY (5Min Chart) – Pivot Trade Short 14.05.2014 – Pairing a weak currency against a strong one or vice versa can reap big rewards. This week we knew GBP was reversing on the daily chart and was currently very weak as it did so. In contrast, there was still a lingering of potential trouble in the Ukraine and a flight to safety mentality causing the JPY to strengthen. Pair the 2 currencies together and you get weak vs strong and the potential for some nice short opportunities in GBPJPY. The best setup came on Wednesday with the offering of a +1.67% trade and this profit was taken within minutes.
4. EURJPY (5Min Chart) – Pivot Trade Short 15.05.2014 – Traders were clear on the significant EUR weakness this week and were looking to pair the weakness against a strong foreign currency for maximal effect (in the same way as above). With the lingering Ukraine crisis, there has still been a flow of money to safe haven currencies, most notably the JPY causing it to strengthen. So when a pivot trade short setup came on Friday, with a positive reward to risk, traders took advantage to the tune of +1.45%.
5. S&P500 (Daily Chart) – Power Pivot Trade Short 14.05.2014 – The weekly chart caught the eye of traders, with a significant level of resistance being hit alongside clear divergence and the huge psychological number at 1900. Dropping down to the daily chart gave a clearer representation of the potential move with a very significant high test reversal bar formation on Tuesday. Trading the break of this low for entry and a stop just above, allowed an efficient entry into the reversal and price has slipped strongly lower generating a +4% return in just 2 days, still open and stop’s at breakeven.