Opportunity Awaits

Good Day Dynamic Traders,

Hope you are all having a fabulous week. I have posted three charts below: Gold; CADCHF; and EURNZD.

Gold
Gold has seen an up trending chart until the end of last year when price started to decline. Since then we have seen price produce lower lows and lower highs which suggests a change in trend. Price has not broken the trend line support yet although it has been tagged. Price has now arrived at a previous resistance and if it fails then we could see a double top. If price breaks up then there are some further Fib based resistances not too far away. Indications suggest price heading back down - conservative traders will wait for break of the previous low, aggressive traders may decide to short sooner based on other confluences.














CADCHF
I decided to post this chart because price has broken out of a triangle/previous resistance at a major RN. Price is now approaching the VI and if it breaks through this then a great long opportunity may await for the taking.














EURNZD
Price on the EURNZD chart has arrived at previous support close to a RN. Those that are already in the position may be looking to compound upon breakdown of price. For those not in the trade, an opportunity may present itself for entry based on ESLT or your own rules. One to keep an eye on!














Good Trading!
Bijal Shah

Gold price drops

Morning Dynamic Traders

NFP is due out today and yesterday saw some irratic behaviour on the markets. Gold being one of them.

The Gold trade I was triggered in a few days ago has now been stopped out, as price plummeted. Since the US markets opened yesterday, price took a drastic decline (check 60 min chart). Fundamentals may have played its part, plus speculators are suggesting that the continued strength in the US Dollar has put pressue on Gold.














Now looking at technicals, what we have is price possibly trying to test the VI. This will be an interesting point for price - will it breakdown and continue to weaken, or will it use the VI as a trampoline to bounce up? Whatever the case, patience is key right now.

This trade was a good example of the markets just doing whatever it likes - fundamentals can always play it's part despite technical confluences being strong enough. At the time of placing my trade I was confident and conflict-free and knew exactly what my loss would be if the trade turned against me. So my learning on this trade is simply a reminder that trading is all about probabilities and losses are simply the cost of trading.

Now I will simply wait and watch to see what price will do next. I been triggered in the CHF and will update on this next week.

Have a great weekend.
Sonia Molina

Gold & GBPCHF triggered

Morning Dynamic Traders

Gold made a 24 point move up yesterday, producing a bullish bar at a support/fib reversal area. Stacking this up with the confluences mentioned in yesterdays blog, as well as ST now curling up, gave me more than enough confluences to enter aggressively on this trade. I have now been triggered using a pullback strategy and already in profits.

















Another trade I have been triggered into is GBPCHF. You can see we have a triple top possibility. VI is acting as R and the recent extreme candle is a doji which was also a head fake - since then price has been weakening. The recent market 'pre-shake' may have stopped out some traders if they had tight stops. Again I'm using an aggressive stance on this trade, as there are many confluences to support a continuation down. Of course the downside to this chart is that price is currently in a range, so I have to be prepared to be in this trade for some time if price decides to go sideways. My rationale is, so long as this trade can make a potential 1:1 RR.

















Of course with all trades there's the possibility it could go against you, as the market could do anything. This is why you must always have a pre-determined stop loss and an amount of capital you are prepared to lose.

Always carry out your own analysis and trade according to your own rules and trading personality.

Great trading!
Sonia Molina

GOLD - double bottom?

Good Afternoon Dynamic Traders

A new trading month, a new trading week and a new day of trading opportunities. For me January was a quiet month on the markets and I was stopped out of a few trades, so I'm starting February with a nice, clean trading slate.

Below is the Daily Gold chart. I was in this trade from early January for a continuation with the uptrend, but was stopped out in the recent pullback. Price is now at a support level (which was previous resistance) and we could have a double bottom formation. Of course it's too early to say, but we do have support clustered with a fib level, MACD convergence and not far below VI and TL acting as another layer of support. Higher TF's also suggest the trend continuing. On this daily chart, price is at an interesting point and the market inevitably needs to decide its path.

















I'm still favouring a trend continuation, so should the double bottom play out there could be a long opportunity to be taken. A suitable pullback strategy could be a good tool here. But should price continue weakening we could see Gold start to reverse. One to watch...

Here's to great trading!
Sonia Molina

Gold direction

G'day Dynamic Traders,

I have been stopped out of my long Gold position as it struggled to break up past the Fib breather level.

We now have a lower high and price is looking to retest previous support. If it manages to break it the next possible area is the value index which also coincides with Fib levels. An opportunity may become available if price breaks the next support level and creates a lower low.















Good Trading!
Bijal Shah

Gold creates a new all time high

Good evening dynamic traders,

Hope you are all having a good week.

There has been a barrage of high impact news out today and it has no doubt had an impact on the markets today. The price of Gold has made an all time high confidently piercing through previous resistance. Price changed direction in April and has been going up since. Will it continue to hold is the question?














The next chart for discussion is the USDJPY. This chart has been in a downtrend since April this year although it wasn't so easy to determine the trend until recently. The head and shoulders spotted in May has completed and price has been making lower lows and lower highs. Price is now arriving at a previous support level and is currently at a Fib reversal level. If you are already in the trade, good trade management is now required. If not in the trade, one to keep an eye on, a good entry may be available soon.














Good Trading!
Bijal Shah

Breakout on Gold

Dear Dynamic Traders,

What a momentous day, the price of Gold has broken through a 1000 and is looking like it will hold for at least today! It has not yet made a new high but is not far from the price of 1034 which is the high that was created in March 2008. Usually the strengthening of Gold is synonymous with a weakening dollar and this can be witnessed perfectly well with the Euro chart. The Pound however is still consolidating and not showing typical signs yet.

The appropriate filters should be applied for entry into this position. The conservative traders may wait for the previous high to be broken before entering. Well done to those that are already in the trade and have scooped up some profits.














The second chart for this evening is the AUDCAD. This has recently being rallying nicely and has produced some nice profits. We saw a bearish engulfing candle yesterday and price had recently got close to the previous high and close to the RN. To trade with the trend we want to wait for the resistance to be broken and the signs are not quite obvious yet. In addition there are many news items being released this week which will likely affect the price action. A good one to put on the watchlist should a breakout occur.













Good Trading!
Bijal Shah

Gold fails to break 1000

Good Evening Dynamic Traders,

Hope you are all having a fabulous week so far. The Swissy and EURGBP have been producing some nice profits.

I mentioned the Gold chart around this time last week. Price has come up to test the 1000 mark went through it but the sellers outweighed the buyers in the market and pushed the price back down. Some tell tale signs were apparent to help us along the way such as the major RN, and reversal candlestick formations in addition to the previous resistance of course.

As always there is still a chance that the buyers may gain dominance and try again to get through this huge psychological barrier as the dollar weakens. For the smart money, the position will be to keep a keen eye to see what the price action reveals and act accordingly.














Good Trading!
Bijal Shah

All that glitters....

Good evening Dynamic Traders,

The EURGBP mentioned on Monday is starting to look like it is moving to the downside. Some of you may already be in the trade.

Below are the daily charts for Gold and USDJPY.

Gold has seen a big push up today, price has broken through trendlines and produced a break out. Given that price has found resistance not too far away, it may be worth waiting for the previous resistance levels to be broken before a long entry is taken. Definitely worth putting on the watchlist.














The next chart is the USDJPY. Price has broken through a trendline and is looking bearish. This may be a good opportunity upon the break of the support line on a shorter timframe to keep on the watchlist.














Good Trading!
Bijal Shah

Gold update & NZDUSD BOB

Hello Dynamic Traders,

Hope you all had a good start to the week! The excitement continues thanks to Javid and Anne's contribution and ever expanding network. A very warm welcome to Zaheer on the fxcps.eu site, I am sure your contribution will go a long way to assisting the readers and your own personal trading.

I have chosen to do a brief update on Gold today as a follow up from last week and also discuss the set up on the NZDUSD.

Below is the Daily Gold chart. Having reached the big psychological 1000 number price retraced and headed south. When I analysed the chart last week, my thought was that price would reach the Fib breather level which also coincides with strong support and perhaps resume the trend up providing an opportunity to enter. It has gone south, however, a good entry point to go long is not yet apparent because possible signs of further weakness are visible and the fact that price is looking to close below the breather level. My conclusion for the moment is to wait and watch this space until the market advises what its going to do next.














The next chart is the NZDUSD. Similar to many other charts this pair has been coming into a squeeze. Today's bar as shown below has closed below the support line and provided us with a potential opportunity to enter in line with the trend. To ensure this is not a FBO please ensure use of the appropriate filters.














Good Trading!
Bijal Shah

www.fxcps.co.uk/blog
http://www.fxcps.eu/
http://www.dynamictraderblog.com/

Gold & Yen

Good Evening/Day Dynamic Traders,


Having mentioned that the Yen currency pairs have been quiet recently, they all happened to make massive movements today. Well done to those of you that captured some of the movement. I have taken the opportunity to revisit the previous blogs for USDJPY and Gold from last week.


The USDJPY daily mentioned on last Thursday's blog is posted below. It has broken through previous resistance and gone through the Fib breather level on the weekly chart. MACD is showing continued strength to the upside. That said, price is approaching several confluences including the figure, Fib cluster and the value index. If the trend has indeed changed then all of these will merely delay price going upwards and good management of the trade will enable profit taking. If price is retracing to the next breather level, before it continues with the trend, then a good aggressive opportunity may be available for entry.















Gold (mentioned last Wednesday) did infact tag the 1000 mark again, and provided a nice reversal candle before retreating down. It will soon be faced with a strong support level combined with a Fib breather level. If the trend continues to the upside this area will provide good opportunity for entry on trading with the trend. One for the watchlist!














Good Trading
Bijal Shah

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http://www.dynamictraderblog.com/
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Golden Opportunity!

Dear Dynamic Traders,


Hope you are having a good week so far.

Not a usual forex analysis though one of interest nonetheless. The major trend for Gold has been up. It has now reached close to a momentous price target of 1000, not only is this a massive figure, it's also a strong previous resistance level, and it has only managed to breakthrough this level once for a short distance before retreating.















Though the MACD on the weekly chart shows continued strength, it is worth noting that the Daily shows much longer term MACD divergence. So what is likely to happen? No one knows, nor do we need to know! Price may break through resistance in which case we will await a BOB and apply ESLT for entry. Alternatively, price may decide to take a breather and consolidate or retrace given it has been going uphill for a while. In either case we will be prepared to utilise the opportunity when it presents itself with the confluence of events.














Good Trading!
Bijal Shah

Follow Javid on Twitter
Follow Anne on twitter

http://www.fxcps.co.uk/blog
http://www.dynamictraderblog.com/
http://www.fxcps.eu/

Fed's Decision

Good morning forex traders.

To try and combat the recession the Fed cuts it's rates as was widely expected. This in turn was Dollar negative but the stock market as you would have expected rallied at what was considered good news.

Those of you I have mentored have heard me use the term "the markets are moving at a measured pace". For the forseeable future get used to "quantitative easing".

From the rate cut being released the Euro headed upwards like a rocket. However, the Euro has met up with the value index so we could see a pull back in the near future.

Gold responded well to the Dollar weakness and the Loonie has continued it's decline since the triple top mentioned on both this site and the sister site.

Good dynamic trading...


Javid Shaik
Forex Analyst