Just a dull Friday with small EUR/USD scalps. I ended the day early and scalped some short dollar trades. Looks like the dollar rally is fading for now. Pound is in recovery mode and looking to test previous high before it’s dip due to article 50 (Brexit) fears. Next week should be interesting for the dollar.
Dollar is still on it’s grind and continuing to be relentless although pound has had a small rally. Movement was still small and price action was a bit too choppy for me to enter. I had one scalp in a GBP/USD long trade and then couldn’t find another signal to trade off of. This whole week would’ve been a great hold on a long dollar move.
After such a crazy day in the markets yesterday, today was a moment of peace. I did an all-nighter last night for London and NY, so I wasn’t in the best condition. Although I knew the market wasn’t moving much, I still tried to force trades to see if any of them stuck. Looks like the dollar bulls are still in power and heading for another leg up. Don’t fade the dollar now.
Just as my prediction yesterday, the Pound had a HUGEEEEEEE sell off during London and New York. Unfortunately, there was a fake out in London that ruined my confidence on shorting pound with a heavy size. I actually had a huge loss in the beginning of London and pretty much spent the rest of the session along with NY scalping pound shorts. I should’ve been a bit more aggressive with my trades but the fake out scared me away.
See the circle? I had a huge selling position in that channel break, and then got torn apart from that rally. Luckily I made back most of my losses from the rest of the session.
Today was a great sign that the dollar bears are running out of steam. USD/JPY had a strong bounce on the 110 support while the EUR/USD & GBP/USD had a nice fall within NY. The pair I’m interested in this week will be GBP/JPY. Article 50 is due to be triggered in a couple days which will give the pound a hard selling. Can’t wait for a potential break out to the bottom for GBP/JPY and GBP/USD.
Although I made a good amount today by longing dollar, I was still skeptical because of the sell off during London. I’ll still need a couple more days to confirm the dollar rally but I’m truly excited for the potential pound selloff. I’m not married to the idea, but once things start moving, you bet I’ll be selling.
The movement today was not my favorite but looking back now, there were definitely still plenty of opportunities. The volatility in the dollar was just so hyper and jumpy. Dollar had a huge sell off during London but recover it’s losses in NY which a huge rally. Twitchy days like today is rather hard to trade on lower time frame like 1 minute but much easier to see on a broader time frame like 15 minute. Regardless, patience is key.
A big error I made today and yesterday were throwing in some dollar long trades when prices were stuck in range. I threw in some trades here and there to catch the dollar rally, if it did rocket up, but the range was too strong. GBP/JPY shorts, my most profitable trades this week, also ran out of steam and took back some pips as well. The frustrating part of it all was that dollar eventually started to climb back up after NY session was over. Today’s price action was definitely funky and range-y to have a proper trade. Hopefully now that price broke out of range, we’ll see some opportunities tomorrow.
The dollar is undoubtedly crunching up for some type of bounce, however, the bears are not giving up without a fight. A dollar pullback from here would be nice because the R:R is delicious, however, it still hasn’t budged. I kept throwing in a few dollar long trades against EUR/USD and GBP/USD, but it’s been stuck in a range. GBP/JPY short scalps however has been paying off.
Total was a fun NY session with tons of juicy movements. My biggest mistake was bailing out on AUD/USD shorts a bit too early and then chasing around GBP/USD shorts which never really moved. The AUD/USD, which I completely missed out on, eventually dropped over 90+ pips. However, instead of ending with a big fat negative P/L, I was able to recover most of my losses from this sexy GBP/JPY shorts. Check it out, it still has potential to drop tons more, I’ll be keeping an eye out.