My last two forex trading posts were a technical analysis on the Usd/Chf
I mentioned on both pairs that the daily charts were showing a
possibility to change directions based on the candlestick patterns at
the time. The daily charts are useful in determining the trends and then
trading within the direction of the trend. One strategy in forex
trading is to determine the trend on the daily chart and then attempt to
get more precise entry points based on the hourly charts.
My point to this update is to review the last entry and to see how the trade may progress from here.
Lets start with the Usd/Chf
You can see the shooting star candle stick pattern that I mentioned last time and how the price has started a descent from that point. My initial stop was above that candle around 1.1711, I would now place a
stop above today’s high around 1.1663. The trade is in progress and
could continue to 1.250, the area circled on the chart. The reason I
have that area as the target is because of the 20 period simple moving
average on the daily chart act as a support level.
Next Aud/Usd daily Chart
The Aud/Usd has made a strong bounce off of the lows that were posted earlier in the week. The current target I have set for this trade is at .8700 — .8750 area, once again because of the 20 period simple moving
average on the daily chart. For this pair since we have moved up so
strong in the last trading session I would wait for a pull back before