London Open Notes - Tuesday 31st March
Good morning all
Trust you all had a good weekend.
I get the feeling that all FX traders are lost at the moment. Last week everyone was telling me EURUSD was going to 1.5000 and now the reality of EUR weakness has hit home.
Some very experienced banks and traders are changing their views by the day, so best thing for us is to keep our risk limited and play off the major support and resistance levels from the longer term charts. It’s a choppy market so we will have to have wider stops as per the video from Friday.
CABLE
- Yes the Daily Golden Cross has happened and the market will be looking for support.
- Trend support suggests around the 1.4100/50 level.
- Lets wait for a double bottom around here for a potential move higher.
- Personally I see very weak currencies all round and I don’t want to buy anything. The question is which one is the weakest.
- Look for this level to hold for support.
EURUSD
- The EUR is very confused at present and views change daily.
- Will the print money like the rest of us in GBP and USD or wont they? If they do EUR must fall dramatically.
- Major support around the 1.2950/1.3000 level.
- Looking for double bottom around this level for confirmation of support and potential retest higher.
EURGBP
- 0.9520 is still major resistance.
- Looking for EUR weakness here but I need to see if CABLE and EURUSD hold their respective support levels.
Verdict
What an Asian session…
Critical level in CABLE ahead… If it holds then I can have a view on where the rest of the currencies will move.
If you enter any trade make sure you have the 60min 20ma close to you position…
London Open - Snapshots & Notes Tuesday 31st March
Good morning all
Well, well, well!!! We are at major support levels in CABLE.
You are all setup now for the day and your levels should be in the system with your stops behind the relevant support and resistance levels.
CABLE will be the driver here. As mentioned over the weekend I need USDJPY to hold up for any chance of GBPJPY and EURJPY to hold up. I am looking for CABLE to hold and double bottom and many of you are looking to build above the support line at 1.4100.
There were some great trades from 1.4330 in CABLE (this am) with a stop above the 50, for only a 20 pip risk. Infact as you know there are scalping opportunities every second of the day. The main thing is you don’t lose perspective of the slightly bigger picture and bigger levels. I am zoning in on the 60min charts as we are at critical levels…
Helena and a few others were short GBPJPY from resistance at 141.00 with stop above. Some excellent pips taken there!!!
So lets concentrate on these support and resistance levels and play off them. Zone in on your chosen 2, 3, 4, 5 or 6 charts and focus and nail the little trades inside the channels. Baz traded CABLE like a pro today for 80 pips with one trade. All he did was short from resistance line with 20 pip risk.
Ok so looking for GBP to hold these levels, if it doesn’t then all long bets are off in my chosen GBP currencies!!! At the moment I am looking to build and add to my long positions or until the supports are broken.
Cheers
Dan
See Snapshots below CABLE, EURUSD, GBPJPY & USDJPY