Monday Recap 10-10

An article by Gus

Hello everyone

So it is a holiday in the U.S. and Canada so liquidity is a bit low on the dollar side, meaning we will see some interesting things on the euro.

First of all I wanted to point out two quick trades relating to the 4H breakout strategy:

GBP/JPY for 45 pips

USD/JPY for 14 pips

So while they are not big trades by any means, not a bad thing to wake up too, 59 pips on a major bank holiday.I closed both of them out on the first take profit level, since I don’t think the volume is there to guarantee a push to take profit level 2.

Besides the 4H breakout on the Yen pairs, lets take a look at what the EUR/USD did over night and during the morning hours.

We can see a nice channel formed from last week to this week, and it was very close to the 1.35437 level I had set there. My trade triggered at the green S/R line and I had it run for 80 pips and now it is set at breakeven. I decided to just breakeven since the dollar has no banks on its side and all the power came from Europe this morning with the news of Merkel and Sarkozy setting deadlines to fix the Greece debt issue and the other countless problems surrounding the euro zone.

Rather not get greedy on a bank holiday. Also I have another S/R line set at 1.36776 so I want to wait and see how it reacts at that level.

Hope everyone had a good trading day and I will see you all in the London open.

Gus