*Taking a look at open trade positions, potential trade set ups, this weeks news and more!*
Welcome back to the blog! I hope you had a great weekend and are ready to hit this week hard. In this blog post I am going to show you updated charts for the 3 trade positions I am currently holding and show you a potential new trade set up I am waiting to enter. I will also give you a breakdown of the key fundamentals due to come out this week and share with you the link to a brand new Diary Of A Finance Kid trading group chat where you can talk to me and other traders on a regular basis.
Let’s start with my 3 open trade positions and I will give you a brief description of why I am holding them and future price targets.
USDCAD Long trade.
This was a simple support zone long trade at 1.33500 where I had seen multiple price rejections forming at a previous price support zone. Price then went on to break the bearish 1hr trendline and 50EMA. It is looking nice and bullish now after making a higher low and I am looking to trade this one up to 1.35 or higher.
FTSE100 Short trade.
I shorted the FTSE at the 6300 resistance zone (slightly above it actually) and I am trading this one down to as low as it will go. Last week price broke and closed below the 6000 support zone and I believe we should see a retest and rejection of this zone this week. If a lower high forms next then we could see 5500 next on this stock market index.
Dow Jones Short trade.
As I mentioned in last weeks blog post, this trade started life as a lower timeframe flag pattern momentum trade that I then held a portion of as it continued to show signs of bearish movements. I am still bearish on US stocks for the foreseeable future and that is why I am holding this trade. I would like to see the 25,000 price zone hit again soon.
This weeks financial market fundamentals.
Theres a few key economic data releases scheduled for this week. Firstly, today we have the US Manufacturing data this afternoon which should see some USD movement and quite possibly moves on global equities if it is shocking data. I have no idea what it will be but analysts are forecasting an increase in manufacturing from the previous months data so if it is not then there will be dollar weakness once again. However, as the USD has been selling off recently it could be said this is priced in already.
The images below show the next 7 days of high impact economic data releases taken from the DailyFX calendar.
Tomorrow morning is the RBA (Australian Central Bank) interest rate decision which is set to remain the same at 0.25%. I doubt this will change and it is priced in accordingly but if they were to change the rate (a rate cut is more likely than a rate hike) then expect some shock movements in all markets.
On Thursday this week there is U.K. inflation data and also the Bank of England interest rate decision. Once again, it is predicted the central bank rate will remain the same at 0.1% BUT if they do cut rates again then this will cause huge volatility in the euro markets. It is highly unlikely but one to be aware of if you have positions in these markets like I do (FTSE, GBP, Euro etc.).
Non Farm Payrolls is this Friday so expect some volatility there but I doubt it will do much outside of the current ordinarily high levels of intraday volatility. I will be trading VIX futures as usual and if you are interested in learning more about how and why I trade these products then read the previous blog posts on trading market volatility by clicking on the links below.
Now let’s look at some potential trade set ups I have my eye on for this week.
The Euro Dollar FX currency pair has seen some strong gains over the past 3 months and I am finally seeing signs of momentum slowing. A nice big bearish daily candle closure on Friday last week and the intraday 1hr timeframe chart is showing price below the 1hr 50EMA and daily pivot level aswell as breaking a bullish trendline.
A 1hr lower low forming will be a good indication that at least the intraday trend has now reversed and shorting lower highs over the next few days and weeks could work very well. This trade could be assisted if the U.S produces better than expected manufacturing data which is due to be released later today so keep and eye out for that.
Important News – I have created a Diary Of A Finance Kid group chat!
That’s right, I am now on the Telegram app and have a chat room dedicated to readers of this blog. I want it to be filled with my blog readers and fellow traders who share trade ideas, share advice and tips and anything they find interesting that is finance/trading related. Click on the link below to join the chat.
If you are interested in learning my personal trading strategies, please consider my Mastering The Markets – Retail Trading Course. Head over to my Trading Education page to check out all of my education packages and the deals available.
All my technical analysis is done using the TradingView platform. You can get access via the link below.
My preferred broker of choice is IC Markets. Low spreads and trading costs really help long term profitability. A link to their site is below.
FTMO Trader Funding Programme.
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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.