DKK - was it a FBO?

Morning Dynamic Traders

I hope your new trading week has kicked off to a good start. The markets are a little up and down at the moment, so discipline is absolutely key. Don't start to second guess what might happen, or could happen. Just let the markets do its thing, wait and watch and then act.

Last week I mentioned DKK as it had broken a consolidation period and was suggesting strength in price. Infact, it looks like price has done a FBO. Price has found resistance at 5.60 and handed out a bearish engulfing candle. That coupled with MACD divergence and we may see price either reverse or consolidate again. Having said that, nothing's really changed for the swing trader. The trend is still up, confirmed by the ST indicator and price is currently still above the significant 5.50 level. If it finds support here this may help push price back up. For a long opportunity I'll be looking out for a bob/mobo entry of the new high.














This potential trade was a great example of the benefit of using ESLT. Applying ESLT on the BOB as suggested, should have protected you from being triggered at all and taking a loss.

Remember, NFP is due out this Friday, so we may see the markets consolidate in the lead up to the news.

Abundant trading!
Sonia Molina

DKK continuation?

Morning Dynamic Traders

Below is the Dranish Krona daily chart. Much like the EUR and CHF it has been in a period of congestion, hanging around the significant RN with the green and reds fighting it out.

As of this morning, price is making a bullish move and contemplating a BOB of the high. We're still very early in the trading day, so anything can happen until markets close. There are various confluences to support a continuation with the current uptrend. Most importantly focus on the price action - trend, VI, chart patterns and then look closer at your favourite indicators. The ST below is giving us a false bar on top.














This pair may not be a favourite for some traders due to the pip value and fast moving/volatile nature. But for those that trade this currency, there is a possible opportunity on the horizon. Despite the recent, slightly extended consolidation, this chart is showing a nice recent uptrend and by end of trading day an ESLT trade could be taken if there is a BOB of the high. Of course price could do a FBO and fall back into consolidation - so patience is needed.

The EUR this morning seems to be gaining momentum in its weakness and my EURAUD and EURCAD trades are gathering further profits. I hope you've all managed to gain profits from the markets too.

Wishing you a great trading day!
Sonia Molina

DKK continues up

Evening Dynamic Traders

Just a quick update from me on DKK. As mentioned on last weeks blog I was waiting for price to retest the recently broken VI and take advantage of the second wave. However price didn't retest the VI quite the way I would have liked.. it simply had a couple of low volume days and has now continued up.

Yes I could have entered and some aggressive traders out there may well have done so, but with the overall trend still being down and the chance of traders remorse I've decided to stay out of the trade until I see a decent breather in price, ideally tagging a fib breather level. Besides my R:R wouldn't have been good enough to enter as the R level looms at 5400 which could have stopped the trade in its tracks. So I've decided to hold off...still on the watchlist though.














Wishing you all a good evening.
Great trading!
Sonia Molina