USDCAD and NZDJPY Trigger Trades in Early Trading This Week
Cory Mitchell, CMT
The USDCAD and NZDJPY are on the trade list for Sunday and Monday. I am publishing this Sunday night as I have a meeting on Monday which will take up much of the morning. This will be occurring a few times this week as I am also participating in Van Tharp's Peak Performance workshop.
USDCAD triggered early this week. This one was mentioned on Friday as we were awaiting a signal.
Over the last few hours of trading on Friday, and the initial couple hours of trading on Sunday, the pair moved sideways near the top of a large daily price structure.
The pair then dropped below the consolidation at 1.0492 on the hourly chart, signaling a trade. The 15-minute chart provided a better entry at 1.4105 on a drop below a smaller consolidation.
Stop loss near 1.4123 above the recent high.
The major price structure target is near 1.3950. I'm using a trail stop loss as the turning points on this pair can be choppy. A trailing stop loss gets moved down as new swing highs or large consolidations form on the hourly chart.
With some choppiness expected there will likely be another opportunity to get in. If it keeps dropping, it could be a great trade with an up to 8:1 reward:risk.
NZDJPY consolidated and then broke above that consolidation, moving higher off the bottom of a price structure.
Long entry near 63.75, stop loss below 63.55, longer-term target near 65.45, and a short-term target at 64.45.
The short-term trade has a 3:1 reward to risk while the longer-term target has a 7.5:1 reward:risk. A trailing stop loss will be used as these turning points can choppy. The trailing stop loss is moved up below new swing lows as they form, or below consolidations on the hourly chart.
All levels are based on the hourly chart. As is quite often the case, a better entry was possible on the 15- or 5- minute chart.
By Cory Mitchell, CMT @corymitc
Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.
Assume I have positions, all the time, in many pairs.
Trades are based on strategies and are not meant to be predictions. The number of trades won varies between 30% and 60% based on the strategy. My objective is to make money based on solid reward:risk ratios, not try to predict every move of the market.