*A quick update to show you what FX positions I am holding and why!*
Happy Friday everyone! Its been a very volatile week across almost all markets with spot gold swinging over 520 pips across 2 days and the Dow dropping over 900 points in a single day. That being said, there have been some nice trades for those of us looking to avoid the lower timeframe chop and hold positions.
Below is list of my current FX positions including entry price and predicted next target for each. I have also included charts showing the current situation of each position along with a short explanation of why I took each trade.
FX Portfolio – 16th August 2019
GBPAUD – Long – Entry Price 1.77500 – Next Target 1.83800
USDJPY (1) – Long – Entry Price 105.180 – Next Target 108.500
USDJPY (2) – Long – Entry Price 105.800 – Next Target 108.500
GBPJPY (1) – Long – Entry Price 126.900 – Next Target 130.500
GBPJPY (2) – Long – Entry Price 127.800 – Next Target 130.500
GBPJPY (3) – Long – Entry Price 128.047 – Next Target 130.500
Spot Gold (XAU/USD) (1) – Short – Entry Price $1531.50 – Next Target $1452.00
Spot Gold (XAU/USD) (2) – Short – Entry Price $1524 – Next Target $1452.00
A strong bearish trendline was broken last week and a new higher high was madden the daily/4hr timeframe. My entry is on the lower high and the intraday support level that formed at 1.77500.
I am targeting 1.83800 at the -0.27 fibonacci extension on the daily trend which would be a new higher high and should be possible now the bearish trend has been broken.
I took this trade based on the 4hr support zone that formed just above the 105.00 key psychological level. This was a high risk trade but it came with a great reward:risk ratio and I was more than happy to take it.
My second long position (the scale in) was taken on the next higher low that formed at 105.800. This was at the 0.618 fibonacci retracement level.
I am planning to hold these long positions for as long as they are profitable. This is a strong carry trade with positive swap fees being paid to me daily for holding these long positions. I will monitor the trends each day and adjust my outlook and exposure as it goes.
My initial long entry on GBPJPY was similar to USDJPY. Price had bounced from the 126.500 support zone which was bang on the weekly (higher timeframe) -0.27 fib extension level. I entered on the next higher low and bounce off the 1hr 0.618 fibonacci retracement level. Remember this because I have a big blog post on fibonacci clusters coming next week! 🙂
My second long position (scale in) was entered on the net higher low and bounce off of the 0.618 fib retracement level on this new bullish 1hr trend.
My third and final long position (scale in) was on the break and retest of the bearish counter trendline (CTL) that is shown on the chart. There was also the benefit of the 128.00 key psychological price support zone being there.
I will manage these positions on the daily timeframe chart and keep them as long as they remain profitable. These positions actually pay a small positive swap fee so there is no harm in holding them during sideways market movements.
My initial gold short entry at $1531.500 was a high risk, over exhaustion short position. I have been long gold for quite some time and finally decided to take profit at the $1500 level last week. Gold was definitely showing signs of being over bought and I was looking for the next aggressive spike upwards to fade and short back down to reasonable levels. A tight stop loss is essential for these types of trades because a high reward:risk ratio is imperative to the long term success of aggressive trading like this.
My second scale in entry was on the break and retest of the bullish trendline and the lower high tat formed at the 4hr 0.786 fibonacci retracement level. This is a standard trend reversal entry that I have explained in previous blog posts.
I am targeting $1452 because this is where the daily 0.618 fibonacci retracement level resides. This is where I will look to take some profit and monitor for a break or bounce at this level.
Thanks for reading and I hope this post explains a little bit more about how I enter trades and manage open positions. Most of these trade entries were posted on TradingView platform for you all to see and follow.
Click on the link below to go and check it out 🙂
Have a good weekend and don’t forget to LIKE, SHARE and FOLLOW this blog to stay up to date with the latest blog posts and technical analysis!
DISCLAIMER: None of the information posted on this site is to be considered investment/financial advice. Trading is high risk and you should only trade with money you can afford to lose.