Good afternoon ladies and gentlemen
I hope you are all refreshed and ready for another assault on the markets after a great weekend break. With the first NFP friday of the year out of the way, we have the rest of the month ahead to take as much SM profit as we can.
So sticking with the EURAUD from last week, price action fell quite steeply in the opening week of trading. I am currently in excess of 300pips in profit. However, with NFP out on Friday price may be in it's first period of retracement. As we know Price never drops in a straight line. When trending, there is a move and then a retracement and then a further move in the given direction. In our case, that is Short! We accept this as normal market conditions and do not deviate from our Trading Plan. This would allow emotions to be getting the better of our trading. Being SM and mechanical and technical traders we know better by now!!
Below I have the daily chart on which I have scrolled back to the beginning of 2005. Currently Price is sitting at a Strong S Level, which was last broken in 2000! Price back then did not break through convincingly and infact reversed. Today's bar is so far a spinning top. Price tested the S Line and has since reversed. So what can we expect this time? Well the market does what it does and we can not influence that. However, we can stack the odds in our favour. The VI is still heading down, MACD is below the midline and Stochastics is giving a fake signal. And most importantly we have the trend!
I will leave you to do your own analysis.
I read this quote earlier today which has been stuck in my head."Let the dreams of today determine the opportunities of tomorrow!"
Total Abundance is our Birth Right