Welcome back to another recap. Have you been trading this week? How did you get on? We would love to know so get in touch!
There have been some great trading opportunities this week, a lot of them around the US Dollar. Did you see last weeks recap and what we saw on the Dollar Index chart?
In last weeks recap we posted the above chart with the Dollar Index at a remarkably interesting point at the top of an ascending channel. After NFP (Non-Farm Payroll) last Friday we saw USD sell off and it continued to sell off all week back into the bottom of the channel where it is currently finding buyers again.
As the EUR/USD is very much the inverse of the Dollar Index chart you could have looked at this as your chart of choice to trade.
As the Dollar Index started to drop, EUR/USD started to push up and we had a small correction back into the moving averages as the market opened on Sunday and into Monday morning.
With USD weakness we noticed towards the end of the week that Cable (GBP/USD) was overextended from the moving averages on the daily time frame and we were looking for a change of sentiment. Thursday’s daily candle was a great seller candle to trade back into the averages.
Price is moving as planned as we write this.
When you look at the above image, you see that 4% a month/1% a week produces a massive 60% on your trading account with compound interest. So literally trading EUR/USD long would have been more than enough to produce that 1% weekly target and more. Add in GBP/USD and potentially that could be another 1% so maybe 3% for the week.
Be selective with your trades, keep the risk low (1% max of your account balance) and you should see a huge difference in your results. If you are still struggling with your trading, then come and speak to us. Do not suffer on your own because we are here to help!
Have a great weekend everybody and we will see you next week.