Forex trading profits for the week: 43.8 pips
This week only two trades were placed and both were winners yielding a total return of 43.8 pips. All trades were updated live on my twitter account.
Thursday’s trade was a short position in USDCAD and yielded 20 pips of forex trading profits.
USDCAD was trending nicely downwards on the 4 hourly chart and offered a good opportunity to short as the market opened just below it’s key pivot level. A profit target was placed just higher than the second support.
Fortunately the target was hit before USDCAD reversed and went sharply higher. The move was caused as US retail sales came out better than expected, hinting that the Federal Reserve may be forced to withdraw monetary easing sooner than expected. This caused traders to move back into the US dollar since a withdrawal of stimulus is deflationary and therefore bearish for the nation’s currency.
EURGBP was showing a nice smooth trend on the 4 hour chart and the market had pulled back enough to allow a nice opportunity to join the upward trend. The market also showed an upward trend on the longer term charts.
A long position was initiated close to the pivot shortly after the market opened and was held for a duration of around 10 hours until the target was hit.
The target was placed at 0.8438, just higher than the first resistance and returned 23.8 pips. This was another good example of forex markets playing nicely to the technical levels, particularly pivot points.
Little news flow on the calendar meant that EURGBP had a relatively smooth trading day.