Back to the EUR

Good Evening Dynamic Traders,

I thought we would go back and have a look at the EURUSD because it looks like it might be breaking out of its consolidation period. In the day chart below you can see that I have drawn in the support line which price has broken today. This is excellent news because it means that a short position is on the horizon. You will notice from the chart that price has been consolidating for about 2 months. Generally when price consolidates the next move in price is fairly big, so hopefully the next trend will bring us money making opportunities.













Although price seems to be breaking below the support line, it doesn’t necessarily mean that we enter a short position immediately after the BOB. If your aggressive then this might be something that you would like to do. The problem with being aggressive is the potential of a FBO. You can clearly see that price has struggled with this support area, so jumping in with both feet may not be a wise option.

Personally I will be waiting for the 2nd breakout, this way I will have more confident that the range has been broken.

What are your thoughts?

Guys I hope you have an awesome weekend and fingers crossed that the good weather continues for the weekend, which would be great because my friend is celebrating his birthday with a BBQ.

That is if Zaheer hasn’t jinxed it with his update.

Carpe Diem

Richard Monnery

Back from my short break

Good Morning Dynamic Traders,

My apologies for my recent absence, Zaheer and myself attended an Anthony Robbins seminar last week which was amazing. This has really helped me to focus and apply myself and I can’t wait to get back into the driving seat of trading again.

For some time now I have been following the EURUSD. The reason for this was that I felt that price was going to move sooner than it has done. I promise this will now be the last update on EURUSD (for a while anyway).
It is still a chart that should remain on your watch list, because price is still in a downtrend. Looking at the day chart below you will see that price is still in a range. You will see that the RN stopped price from falling anymore, but another RN at 1.3800 stopped price from climbing further. Hence the range that price is currently playing in.
If you look closer you can see a potential double top formation. If this does turn out to be a double top formation coupled with the downtrend, we could expect price to drop further. This is a chart that will definitely stay on my watch list.













I’m going to leave you with a quote from Tony Robbins – “Live with Passion”

Carpe Diem

Richard Monnery

Struggle on the EUR

Good Morning Dynamic Traders,

Hope you all had a great weekend and are looking forward to another week of trading.

I have waiting to see what the EUR does next. As you can see from the day chart below, price has been struggling recently and can’t seem to get back in to its down trend probably. In the chart below you will see that the RN that I pointed out on a previous update is still acting as good support area for price. You will notice that we have MACD convergence, which signals to us a possible reversal, which is also another reason for the slow progress with price.













With these factors in mind the trend however is still down, which means that a short position is still favourable.

I personally will be keeping this chart on my watch list and waiting for an entry signal.

What are your plans?

Happy Trading

Richard Monnery

What's going to happen next?

Good Morning Dynamic traders,

If like me you have managed make some money from the EUR, very well done to you. However the fun may not be over just yet, which means that this chart should still remain on your watch list.

In the day chart below you will see that price has stopped falling and that price has been oscillating. This shouldn’t really come as a complete surprise to us as you would be away of this support area by using your Fib tools and of course the presence of the ever famous RN.













So potentially this could be a breather! What you do think?

In the 4 hour chart below you will see that price is being squeezed, which means that price will be forced to make a decision to either continue to drop or to start climbing.













This chart has proved that being patient does pay off, so it’s probably best not to jump gun and wait for another signal to enter a trade.

Happy Trading

Richard Monnery

Trading the EUR

Good Evening Dynamic Traders,

In my last update I was talking about taking the opportunity for a short trade. I finished my last with a couple of questions for you ponder, which I am now going to answer.

I decided to take a short trade on the EUR because price had broken below the VI and showed further weakness by breaking the last pivot low.

In the chart below you will see that I have marked out where my short entry was.













I made a healthy profit from this trade, and I hope some you have too.

I am keeping this chart on my watch list, because I there could be another opportunity for a short position in case you missed the this one.

Carpe Diem

Richard Monnery

Short Entry

Good Evening Dynamic Traders,

In my last update I was talking about sizing up the EUR for a short entry. In my update I briefly spoke about what approach I was going to take in regards to entering a trade. I decided to adopt a conservative approach rather an aggressive approach to trade entry.
I chose the conservative approach because of where price is in relation to the VI.













Can you spot where my entry will be?

Can you see why I have decided to take a short entry?

I will answer these questions tomorrows update.

Happy Trading

Richard Monnery

Sizing up the EUR

Good Evening Dynamic Traders,

Hope your all having a good week so far.

Just like Bijal, I have also been eyeing up the EUR for some money making fun.
I have been deciding which approach I should I take in regards to entering a trade. I decided to opt for a conservative approach rather an aggressive approach.













My reasoning for this decision is because of how close price is to the VI. As Bijal pointed out and as you can see from the day above, price has been consolidating just above the VI and has now just recently dropped. I want to make sure that this isn’t a fake breakout. So I am waiting till price has made more distance away from the VI

Tomorrow I will run through my 2 decisions in more detail.

Is the EUR on your on watch list?

Carpe Diem

Richard Monnery

Round Up Time

Good Morning Dynamic Traders,

My apologies for not updating this week till now, I’ve had a really hectic week which seems to be calming down, which is just in time for the weekend.

On my last update last week, I left you with a question regarding the Euro Dollar. My question was, “what other factors appear on the day chart which would make us think that the uptrend was over?”
We had already covered the fact that price has hit a key RN. I gave you a clue and suggested that you look at your notes for reversal formations, can you see one? In the day chart below I have marked what seems to be a double top. Along with this formation we have MACD Divergence from both the histogram and from the signal lines.













This isn’t a guarantee that price will reverse and drop, so we need to be ready for a long and short position. We know where the pivot points are and with our ESLT tool, we should have plenty of time to get ready for a trade.

The Yen is still taking its time to decide what it wants to do. It does seem to be dropping, but it is falling at a very slow rate. Through my previous updates on the Yen, we should have our entry points ready. However we will have to be patient, because it might take price some time for price to reach them.

Happy Trading

Richard Monnery

No Change Today

Good Afternoon Dynamic Traders

We’ve broken the back of the week now and the weekend is insight. I hope like me your having a good week trading.
I thought that I would try and be clever and update 2 crosses this week as there seems to be slow progress from the Yen. This kind of back fired a little bit as the EURUSD doesn’t seem to be breaking the pivot point I highlighted on Tuesday’s update.
Instead we were met with a doji and currently price seems to be showing bearish characteristics.

Why is this?

You will notice in the day chart below that price has risen to a key RN, which is obviously proving tricky for price to beat seeing as it has already failed once at this point. There are more factors involved which would also help to explain why price is struggling and potentially might make us think that the uptrend has ended.













Can you see these factors? I will reveal all tomorrow, but to give you a clue, check your notes on reversal formations.

Happy Trading

Richard Monnery

Looking at another Currency

Good Morning Dynamic Traders,

Hope you had good start to what seems to be a very cold week ahead.

I think it’s time to maybe move on from the Yen and to start following another currency. Currently the Yen is working out what it wants to do, and potentially once it has decided which direction to go in healthy profits could be on the horizon. This is why it is important to get prepared for a long and short position so that we are ready for the move. This cross will definitely be on my watch list.

I haven’t completely decided which cross to look at now, so I thought that I would talk a little bit on the EUR. In the day chart below you will see that the EUR has been in a steady uptrend. Recently price has performed a pull back and seems to be eyeing up the opportunity to continue its journey up. You may want to consider putting this cross on your watch list because if price breaks above the pivot point (that I marked in the day chart below), this could be where the uptrend continues and would also be the area for a long entry.













Happy Trading

Richard Monnery

Round Up & New Currency

Good Morning Dynamic Traders

Hope you all had a great bank holiday weekend! I had a brilliant time in Great Yarmouth with my girlfriend, and now I’m looking forward to making money on the markets this week.

I would like to start by apologising for not posting an update last Friday! I was a little late getting to work due to traffic and because of a busy day I struggled to find time to update the EUR. So today I will round up following the EUR and we will begin to follow and learn from another currency.

My last update on Thursday last week, I expressed how I was surprise that the EUR managed to break out of the trend line and I thought that it might stay within trend line a little longer so that we might of had the chance for trading a short position. Since price broke above the trend line price has been using the trend line as support rather than resistance. Price has also been using a S/R line for support which happens to be at a RN, just above the trend line.
It will definitely be interesting to see what happens to price as there is a lot of support below where price is currently. Also see Bijal Shah’s awesome update from yesterday for more EUR fun!!














I have decided to follow the Loonie this week. A currency I haven’t spoken about in while and quite keen to catch up with.
In the day chart below I have marked 2 S/R lines which have helped to keep price from falling. You will also see that price broke through the top support line, and depending on your trading style might possibly trigger you a trade. We are now left wondering what will price do now?
Tomorrow we will break down the Loonie some more!














Happy Trading

Richard Monnery

EUR, You Surprised Me!!

Good Morning Dynamic Traders

I have to be honest in saying that I am fairly surprised that the EUR smashed through the trend line. Let’s have a look and see what happened!

Yesterday I showed you on the 4hr chart price dropped to a Fib breather level. In the hour chart below I have marked out the same Fib breather level, price used this breather to relax before it tackled the trend line. The candle stick that broke through the trend line closed just above the trend line and then price was using the trend as a support line instead of a resistance line.
A big factor that helped price to break the trend line was the RN. After price broke through the trend line it did start to drop, but the support line at this RN helped to catch price from falling back below the trend line.














I was surprised that price beat the trend line and didn’t fall back down and continue the downtrend, because price has tested the trend line 4 times which demonstrates the trend line is fairly strong. We also have MACD Divergence on the hour chart making us away of a reversal, but the reversal happened above the trend line and price only dropped to the RN just above the trend line.

The answer to my question yesterday is now slightly irrelevant, but for future use on other charts I will still give you the answer! The answer really depends on how aggressive you are and depends if you have the free time to manage the trade as you need to be ready to close the position in case price was to drop after hitting the trend line.
I personally wouldn’t take the long position, because I expecting price to reversal at the trend line and if you look previously on the 4hr chart price hasn’t always hit the trend line before reversing.
However a long would have meant serious profits as price did beat the trend line.

I look forward to tomorrow to see what price does today.

Till Tomorrow, Happy Trading

Richard Monnery

Day 2 on the EUR

Good Morning Dynamic Traders,

It’s a glorious start today, fingers crossed the weather keeps it that way!

Yesterday we saw what the EUR has been up to recently, it’s now time focus on where price is now!
In the 4 hour chart below you can see that price is currently heading upwards towards the trend line that I have drawn in. You will also notice that price had a breather during it’s currently climb, this breather was caused to due to price reaching a S/R area, and a fib breather level.

We could assume that price will climb back towards the trend line, tag it, and then drop back down. If price does hit the trend line, we then have an opportunity to take a trade.
I was intending to explain further my findings and thoughts, but instead I have decided to leave you with a question.
If we are expecting price to hit the trend line, should we be take a long position now??

Happy Trading

Richard Monnery