Regarding the currency market, and after a couple of very indecisive weeks, price seems to be starting to pick up the overall trending moves from the previous months. US Dollar is starting to show signals of renewed strength – as we can see against EUR and GBP.
On the Indices side, CAC is back to the now usual – since the end of 2014 – overall uptrend hitting new all time highs yet again. The DAX on the other hand is still stuck very close to the all time high but not finding the strength to break it. On the FTSE, and after the massive pullback last week, price seems to be picking up after an all week climb back to the 7000 level.
In the United States, all the indices are still stuck within the past 2 weeks range. On the Asian side, the Nikkei proved once again to be on a clear uptrend with yet new highs being broken on a daily basis whilst the Hang Seng, after the signals last week, jumped up and broke the previous all time high by 2600 points in 2 days reaching a maximum of 27977.
Gold and Silver still showing some mixed signals – although the overall trend is still showing lower highs and lower lows, the break of some of these cycles, along with the presence of very significant horizontal levels of resistance/support, are proving to be the reason behind this apparent indecision.
Crude now at a proven range between 54 and 44 and showing no signals of getting away from it anytime soon.
Best Trades this week
- Hang Seng (Daily Chart) – Breakout With Trend – 02.04.2015 – After the close of a convincing buyer bar on the daily chart above the previous all time high at 25140, this aggressive trade proved to be right and reached as high as a 6 to 1 reward to risk ratio. After a heavy pullback on the 2nd day, price is now at a very pleasant +4,5% profit. It is strongly advised to lock in some or even all the profits and protect your gains and your capital.
- EURCAD (Daily Chart) – Continuation Trade Short – 06.04.2015 – The engulfing seller bar on the 6th was the price action we were waiting for. The bounce on the moving averages and the recent yet strong level at 1.3750 added some extra confidence into the decision. Now at +1% profit and promising to reach new lows… As usual protect your capital first of all.
- EURNZD (Daily Chart) – Continuation Trade Short – 07.04.2015 – A very similar trade to the EURCAD one. Once again an engulfing seller bar on the 7th along with the bounce on the moving averages and the overall cyclicity made us place the order. Currently over +1% profit and still moving…
EFFECT OF THE NEWS LOOKING FORWARD
The end of this week should be the confirmation (or the denial) of the trend continuation based on the Dollar strength. As Trend Followers, we are eagerly waiting for price to let us know how and when to act.
On Wednesday the 15th there will be (yet another) European Central Bank press conference and we will definitely be protecting our positions if any trade comes up by that time.
By the end of the week, the comments out of the G20 meetings on Thursday and Friday should also be the big focus of the trader’s attention. As usual, we will be concentrating on whatever the price leads us although we are always concerned about the news and any announcement that might jeopardize our positions and therefore bring any extra risk to our trading.
If the fundamentals agree with the technicals even better, if they don’t we will still focus mainly on the charts. Either way, we will definitely protect each and every trade so our capital is always within one of the main principles of trading consistently – risk management.