Market Review / 25, February 2019 - 01, March 2019
Trade Summary: 25, February 2019 - 01, March 2019
British Pound / Japanese Yen:
The British Pound uncertainty automatically leads me to be cautious in executing opportunities. However, the positive confluence factors across multiple timeframes instilled confidence that amidst the uncertainty, there was a clear trading opportunity.
Amongst the positive confluence there was one lingering negative that couldn’t go unnoticed, that was the risk comparative to reward.
Whenever there’s uncertainty, it’s paramount the reward considerably outweighs all risk.
On this particular occasion it was difficult to obtain more than a 1:1 prior to testing structure, this automatically forced me to neglect the overall trading opportunity.
Euro / Japanese Yen:
A short position was executed on the Thursday, 14 February 2019 based on the multiple timeframe confluence at 125.50
I timed the entry on the 4-hour chart once a close below all structure support levels was confirmed.
This short positions closed at a loss of 0.5% on Monday, 25 February 2019.
One thing is for certain, the volatility is just getting started as we move ever closer to the Brexit deadline.
U.S. Dollar Index:
Here we are, three months into the year and the Dollar Index is beginning to present clean turning points across multiple trading timeframes.
Although the weekly ascending trendline and 50EMA continues to act as structure support, the acceleration after the 04, February 2019 failed to continue, indicating a large decline in Q2 is highly probable.
Additional development intraday is required prior to confirming a potential trade opportunity.
Australian Dollar / Japanese Yen:
The Daily wedge formation caused significant choppiness throughout late February, making this currency difficult to trade.
I awaited development on the intraday timeframes as I was concerned the 4 hour timeframe consolidation period was simply price forming a higher low.
Awaiting an intraday trend change would have presented a trade opportunity, unfortunately this failed to occur as we now approach market close.
British Pound / Japanese Yen:
The British Pound uncertainty automatically leads me to be cautious in executing opportunities. However, the positive confluence factors across multiple timeframes instilled confidence that amidst the uncertainty, there was a clear trading opportunity.
Amongst the positive confluence there was one lingering negative that couldn’t go unnoticed, that was the risk comparative to reward.
Whenever there’s uncertainty, it’s paramount the reward considerably outweighs all risk.
On this particular occasion it was difficult to obtain more than a 1:1 prior to testing structure, this automatically forced me to neglect the overall trading opportunity.
Euro / Japanese Yen:
A short position was executed on the Thursday, 14 February 2019 based on the multiple timeframe confluence at 125.50
I timed the entry on the 4-hour chart once a close below all structure support levels was confirmed.
This short positions closed at a loss of 0.5% on Monday, 25 February 2019.
One thing is for certain, the volatility is just getting started as we move ever closer to the Brexit deadline.
U.S. Dollar Index:
Here we are, three months into the year and the Dollar Index is beginning to present clean turning points across multiple trading timeframes.
Although the weekly ascending trendline and 50EMA continues to act as structure support, the acceleration after the 04, February 2019 failed to continue, indicating a large decline in Q2 is highly probable.
Additional development intraday is required prior to confirming a potential trade opportunity.
Australian Dollar / Japanese Yen:
The Daily wedge formation caused significant choppiness throughout late February, making this currency difficult to trade.
I awaited development on the intraday timeframes as I was concerned the 4 hour timeframe consolidation period was simply price forming a higher low.
Awaiting an intraday trend change would have presented a trade opportunity, unfortunately this failed to occur as we now approach market close.
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