Last week I pointed out a sell trade on the GBP/JPY opportunity and the trade is about to reach our profit target. This short sell was a wild ride on Friday but managed to bring in over 400 pips in two business days! You just have to love the volatility of this pair!

I hope you were able to hitch a ride on this one!

Ryan

Quick update on the channel sell I posted earlier this morning. If you got short this morning, I would consider moving your stops to break even now or taking some profit ahead of the Consumer Confidence report due out in 50 minutes.

If USD/CHF breaks below $1.0975 I full expect this pair to run to the bottom of the channel but best to protect some profit now.

Best of luck,
::Ryan

The dragon lady has been on a freefall over the last three weeks! Support appears to have been found around $207 on the weekly chart but the pair is trending in a descending channel on the hourly which sets up this potential short trade. I think as long as the carry trade continues to implode and risk packs up its things and runs from the stock market GBP/JPY will continue to sell off and probe $207 again sometime next week.

Good luck and remember GBP/JPY is a volatile pair and usually requires larger stops for room to maneuver so if you don’t have the risk capital, stay away.

::Ryan

I like this descending channel sell trade setup USD/CHF is presenting this morning. I’d prefer to sell this pair with the channel following a clear candlestick pattern near the top of the channel. What kind of candlestick pattern? I’m so glad you asked! Bearish Engulfing, Doji, or Tombstones would be great!

The other possibility I might consider would be buying a retracement to the top of the channel if the pair breaks out and closes above the channel.

Good luck!

::Ryan

Good morning everyone! On the back of this morning’s terrible U.S. Retail Sales report I’m getting short USD/CAD at $1.0159. I like this trade setup because of three things:

1. Dollar is bouncing off of a recent double top high around $1.0220.
2. Dollar’s Retail Sales were terrible! Consumers aren’t spending, oh no!
3. We have a nice channel on the hourly chart to target the bottom of, which if it breaks out of this trade could run a long time.
4. Oil may give us a boost if it climbs, although admittedly I haven’t checked spot oil prices yet.

I like this trade better than the USD/CHF trade I posted yesterday although it is still valid if you want to trade it.

Best of luck!

Ryan

I’m interested in this double bottom support area on USD/CHF’s daily chart. If you drop down to the hourly chart you’ll see the key support area is at $1.0884 with the double bottom testing $1.0886 and 1.0884. There are a couple of ways I’m looking to trade this double bottom.

1. If U.S. fundamental data surprises to the upside this week I will buy any reversal candles as close to $1.0880 as possible.
2. If we see a break below the $1.0880 level, I’ll sell.

Best of luck.

Ryan