On this day, I begin a series of 30 trades. Trades must be 50 pips or better. I want GBP and NZD as well as the cross pairs in each because GBP and NZD and crosses are running strong together. EUR/USD and AUD/USD as well as crosses are running quite opposite to GBP and NZD.
USD/CAD big line break this morning was located at 1.3329 while the afternoon 1.3329 was raised to 1.3369. The bottom this morning was 1.3085 while current bottom is 1.3124. The target this morning was 1.3219 and USD/CAD dead stopped at 1.3208. Overall, big line breaks are located at 1.2979 and 1.3041.
The strategy. I caught the short at 1.3208 perfectly this morning and I’m holding until 1.3118 or directly in this area. Why not bail at 1.3138 and take the 70 pips profit is because I’m stuck with 2 lots short at 1.3168 ish. Why stuck. I’m using a different system and the shorts weren’t supposed to be actual. but I also realized USD/CAD is overbought and will struggle in the low to mid 1.3200’s. From 1.3197 USD/CAD is overbought, from 1.3227, CAD begins richter scale overbought. So I’m using this trade as my swing trade. The other aspect as to why remain at 1.3168 is I see astoundingly wonderful aspects to the current model never seen before.
More trades will follow. Today is Wednesday September 14 at 8:26 pm EST.
Brian Twomey, Inside the Currency Market, btwomey.com