Opportunities in the FX market
FX markets have finally broken out of
their months’-long malaise, in a major way. One thing we can always count on
from currency markets: big profit potential when directional moves ensue.
Any active, seasoned FX trader should have made
big, big money inside the past couple of weeks. It may have been tough sledding
for awhile as the tapes consolidated for this move, but directional swings have
been straight and significant. Just taking pull backs in harmony with overall
trends have offered countless potential swings of +100 pips or more.
The FX market overall is not easy to trade, but
when they stage big trend moves in directional fashion like this, riding the
waves is automatic without any further thought.
GBP/USD (+$10 per pip)
British Pound-USD pair have rallied +/- 1,700
pips from recent lows to highs in the past couple of weeks. That is a $17,000
per single FX contract ascent. All along the way, buy signals have been prolific
as one would naturally expect. Two of the most recent were Thursday morning just
below the 8700 level that soon peaked near 8850. Last night while recording our
member’s review video, I noted how 8835 was giving a clear buy signal at the
time. Taking that signal long offered another +100 pip gainer by this morning.
The GBP has been and will continue to be a
fantastic trading vehicle for weeks and months to come… count on that!
EUR/USD (+$10 per pip)
Euro-USD pair usually trades inside the GBP
swing ranges, it’s a more muted symbol. Nevertheless, there were similar long
trade setups here that also went for very respectable gains.
USD/CHF (+$8 per pip)
USD-Swiss Franc has given three crystal-clear sell signals inside the past 24
hours, from 2240 down to 1960 current lows. How many pips can a trader pluck
from a 280-pip swing? There will be more downside to follow, for sure.
USD/JPY (+$9 per pip)
USD-Yen pair hasn’t moved to the degree that
above pairs have, but Yen crosses are staging trend moves too. Sell side is the
right side as the USD pummeling sees no quarter in sight over the long haul
charts.
Summation
Currency markets are on the move. USD is breaking down hard and in my
opinion that has only just begun. We should expect to enjoy weeks if not months
of directional trend action in the major FX pairs, with no reason or need to
fool around with secondary = obscure FX pairs. If you have the right methods and
tools, major FX pairs have offered monstrous profit potential in the past couple
of weeks.
The currency trend party of a weaker USD has a
lot more potential ahead. When currency markets break long-term consolidation
and stage long-term trend moves, they are 1,000 car freight trains that
obliterate everything in their paths. Trying to pick turns or fade those trends
is deadly. Nothing wrong with counter-trend swings when price action gets
extended away from key tools, but the easy money is made thru patience and going
with the trend. After watching FX markets coiling sideways for many months in
our recent past, it is highly probable we’ll see them trend bigger against the
USD than most can imagine, for an equal span of months = years to come.
Trade To Win
Austin P
(Online video clip tutorials… open access)
Austin Passamonte is a full-time professional trader who specializes in E-mini stock index futures, equity
options and commodity markets. Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.