Expect Thin Market This Week

Today is Japan holiday, so Tokyo closed for today. 

Expect thin markets till Europe comes in. And since new year round the corner, most of traders might be holidaying.

Tomorrow, (1st Jan), is holiday in almost all the countries. Tokyo will remain closed on Wednesday & Thursday as well.

EURAUD Short Trade Setup

EURAUD Hourly

A short trade setup is coming on EURAUD. This setup is more identifying reversal point. 

On hourly charts, price is moving above and bouncing from 50EMA. Momentum looks to be up till price is above 50EMA. But a break below 50EMA signals fading momentum. 

EURAUD Daily

GBPJPY At Big Weekly Resistance

GBPJPY Weekly

Pair GBPJPY is knocking at a major resistance level on weekly charts. This levels comes through 139.20 to 140 area. 

This area is support-turned-resistance. 200EMA is also coincides with this resistance level.

If this resistance gives up, then it will be free ride till 145 level. No resistance comes till then.

Yen Weakens to 28-Month Low

The yen weakened to the lowest since August 2010 amid speculation the Bank of Japan will inject more cash. Asian stocks and most commodities advanced as U.S. lawmakers arranged meetings before a budget deadline.

Japan’s currency dropped 0.4 percent to 86.40 per dollar as of 11:17 a.m. in Tokyo. The MSCI Asia Pacific Index (MXAP) gained 0.4 percent as the Nikkei 225 Stock Average climbed 0.8 percent, on track to close the year today with the biggest annual gain since 2005. Standard & Poor’s 500 Index futures were little changed. Oil added 0.5 percent in New York while London-traded copper rose 0.4 percent. 

NZDUSD Channel Trade Setup

On daily charts, price is moving up in ascending channel. This channel is in place since last week of July-12.

The move lower in kiwi has brought focus on lower trendline of this channel. On previous down moves, the channel has support price. 

EURGBP Channel Short Trade Plan

EURGBP Daily

I am watching this channel short trade setup from past few sessions. GBPUSD sales are fueling EURGBP higher. 


This channel is in place since Sep beginning. 200EMA comes towards middle of the channel.

EURJPY At Big Weekly Resistance Level

EURJPY Weekly

A big weekly resistance is coming up in EURJPY. This resistance area spans from current level to 114.30/40. 

This area has provided good resistance previously and has been a good support when broken. 

EURGBP Channel Trade

EURGBP Hourly

Last week, I posted a daily channel trade setup, post [here], which is yet to materialize. In the mean time, on hourly chart another channel trade setup is coming up.

Price is moving inside a descending channel. Price action looks rangy.

Good Morning Christmas Week

Good Morning Christmas Week.


Forex price action during this week remains notoriously dull and volatility high due to thin markets. Even a small size trader can cause big price fluctuations.


I won't be trading normal size  this week. I will trade only quarter of the normal size. 


But nonetheless, I will post trade setup. 

Wish you a happy Christmas and New Year.

- Dinesh Yadav.
  (Full Time Independent Forex Trader)

AUDUSD Channel Long Trade Setup

AUDUSD H4

A long trade is coming up on touch of channel's lower trendline. 

This channel is in place since Oct-12 and is holding up price action very well. I am watching this setup from past few sessions. Previous post [here].

EURGBP Channel Trade

EURGBP Daily

On daily charts, price is moving in ascending channel. 

This channel is in place since Sep and it offer a good trade opportunity to play the ranges. 

GBPUSD Triangle Short Trade

GBPUSD H4

I was waiting for this setup to materialize and it finally did.

Although the price is bouncing from trendline, but it not breaking previous highs. This can be a indication and bull momentum is fading out.

AUDUSD Channel Long Trade

AUDUSD H4

A long trade setup is coming up in AUDUSD H4 charts. 

The channel is in place since Oct-12.I was watching this setup from past sessions and planned to go short. But pair backed off before touching upper trendline. Previous post [here].

GOLD Long at 1676

GOLD H4

I went long GOLD at 1676 on touch of support area. 

This support is in place since Aug and it was on my watching radar. 

I was waiting for this setup from past few session. Previous post [here].

GBPUSD Triangle Short Trade

GBPUSD Daily

A triangle trade is coming up in GBPUSD. Failure to make previous highs may drag this pair down. 

I am watching this setup from past few sessions. Previous post [here].

NZDUSD Short Trade

On NZDUSD daily charts, the around the highs of Feb end is holding up.

EURJPY Short Trade

EURJPY Daily

Price is backing off after touching previous highs. 

The area around 111.30 has holded on previous 2 occasions and can be a game change if it holds again. 

GOLD Long Trade Setup

GOLD H4

This setup and technical moves are unfolding from past few sessions. Previous post [here].

A support once broken, becomes resistance. A resistance once broken, becomes support. 

USDCHF Head-and-Shoulder Trade

USDCHF Daily

Finally this setup materialized on Friday. I went short right on break of neckline at 0.9215 and currently my stop is just above neckline at 0.9240.

I am watching setup from past week, since the formation of right shoulder. Initially, I went short while right shoulder was still forming. Previous post and trade details [here].

Happy Trading Week Fella

Have a pip full and happy week trading fellas.

GBPUSD Trendline Trade

GBPUSD Daily

The daily trendline is providing good support on dips. But failure to make new highs might drag the pair. 

The trendline should be make-or-break here. 

GBPAUD Triangle Trade

GBPAUD H4

On H4 charts, price is constrained within a triangle. 

Lower trendline is in place since 20-Nov and upper trendline is in place 5-Dec. 

Lower trendline looks like a strong support and has been holding on many dips. 

USDCHF Head-and-Shoulder Short Trade

USDCHF Daily

I posted this setup as developing few days back. Post [here].

Initially I went short on touch of 200EMA at 0.9370 and booked my trade at 0.9310 for +60 pips. 

European Equity Mix Close

For 13-Dec

• French CAC -0.3%
• Spain IBEX +0.3%
• UK FTSE -0.4%
• German DAX -0.6%
• Italy MIB +0.6%

Option Expiry for 13-Dec

Today's option Expiry for 15GMT (from Bloomberg)

• EUR/USD: 1.2950, 1.3125, 1.3150, 1.3175
• GBP/USD: 1.6075, 1.6100, 1.6200
• USD/JPY: 82.40, 82.50, 82.75, 82.80
• AUD/USD: 1.0465, 1.0500, 1.0520, 1.0550

AUDUSD Daily Channel Trade Plan

AUDUSD Daily

On Daily charts price is moving up in ascending channel. This channel is in place since Oct.

A daily resistance level is coming up at 1.0620/30. This area is highs of  14-Sep and 9-Aug. Currently price is near to this area and any spike towards it should be considered as short trade opportunities. 

GOLD: Its All Technical Moves

GOLD H4

Its all technical moves in GOLD. One resistance breaks but another holds. Here is the setup I posted yesterday and levels still holds.

Currently price has broken below a major support area. This area been on-off as support & resistance. 

EURUSD Short at 1.3045 & 1.3070

EURUSD Daily

Tracking this setup from past few session and it materialized finally. Setup I posted yesterday [here].

Initially I went short EURUSD at 1.3045 and later on added to my short at 1.3075 on touch of the channel's trendline. 

USDJPY Channel Short

USDJPY H4

This setup is in place from past few sessions. Previous post [here].


Price is moving in a descending channel from past few sessions. Price movement looks rangy.

GBPJPY Channel Short Trade

GBPJPY Daily

I am watching this setup from past few sessions and have trade it well previously. Initially I went short at 132.48 and booked at 132. Previous post [here].

Price is moving along the channel's upper trendline. 

EURUSD Short Trade

EURUSD Daily

This setup is in place form past few sessions and I have traded this setup previously. Previous post [here]. and [here].

Now another channel short trade is coming up. 

GOLD Support Holding

GOLD H4

I am watching this area from past few sessions. Previous post [here].

This area has been constantly on-off as support/resistance. After a break up on thin Monday markets, area is providing support on every dip. But 100EMA is also coming just above the support and is restraining price. 

AUDUSD Channel Short

AUDUSD H1

One more channel trade in AUD pair. AUDJPY channel trade [here].

Price is moving in a ascending channel and looking its holding it very well. 200EMA is good support on dips. 

AUDJPY Channel Short Trade

AUDJPY H1

Pair is consolidating in ascending channel on hourly charts. This channel is in place since 21-Nov and has restrained price action since then. 

200EMA is good support on dips and price is bouncing from it. 

USDJPY Channel Trade

USDJPY H4

I am watching this setup from past few sessions. Previous post [here].

On Friday, price did went up to the channel's upper boundary but then backed off with same speed with which it went up. But I didn't took that trade being high risk even, NFP. 

USDCHF Head-and-Shoulder in Making

USDCHF Daily

I am watching this setup from past week. Previous post [here]. 

Setup is making out very well. Left shoulder and head are complete and right shoulder is in making. 

Price is going up towards upper horizontal resistance area and I expect that area to hold. Currently price is at 200EMA and backing off. Break above brings focus to upper resistance area.

EURUSD Trade Plan

EURUSD H4

I am watching this setup from past few sessions. Previous post [here]. Initially pair bounced from 200EMA on Friday, but since then has come back below 200EMA. Details [here].

After break of 200EMA, focus comes on horizontal support area. This area has been on-off as support & resistance. 

GBPCAD Short Trade

GBPCAD H4

Pair broke the channel on H4 chart to downside. Setup looks bearish.

This channel is in place since 7-Nov and has constrained price since then. After the break to downside on Friday, pair has tested the lower trendline once but has pulled back since then.

GOLD Trade Plan

GOLD H4

I am watching this setup from past few sessions. Details [here].

Currently price is hitting upper resistance area on H4 charts. This area is support-turned-resistance. A break above this area should bring focus on the upper trendline.

Tokyo & London Open Trading Strategy

I have seen many people trading this strategy successfully and claiming that this strategy gives 80% win ratio. This strategy offers a 1:1 Risk-Reward ratio. I am not sure how good is this strategy in long run, but a check of past few sessions of EURJPY pairs does proves profitable. 

Trading Pairs: Best suited for most traded JPY pair i.e. EURJPY, GBPJPY & AUDJPY.
Trading Time: Tokyo Open & London Open.

Trading Strategy:
At Tokyo open, set two pending orders as follows:
    1. One BUY order at  20pip above Tokyo opening price 
    2. And a SELL order at 20pip below the opening price.
Set 40pip take-profit on both the orders and 80pip stop-loss. If trades placed at Tokyo open didn't get triggered till London open, then cancel the previous 2 pending orders and place another 2 pending orders (as above) for London open price.

"Bunga-Bunga" man want to run for prime minister-ship again

"Bunga-Bunga" man want to run for prime minister-ship again....

Berlusconi, a former three time prime minster has declared his intentions to run for prime minister-ship again. 

In late October, he was convicted for tax fraud and had said on several occasion that he wont run for candidacy again.

“I’m running to win,” he said, saying he took his decision “out of a sense of responsibility” for Italy and because his centre-right People of Liberty party had been unable to find an alternative “recognised” leader since his resignation as prime minister in November last year.

Hard Landing Avoided In China

Looks like hard landing in China has been avoided, atleast as of now.

• Year-on-Year Industrial Production for November comes at 10.1% Vs 9.8% expected. Previous reading was 9.6%.

• YoY November Retail Sales comes at 14.9% Vs 14.6% expected. Previous reading was 14.5%.

• YoY Fixed Assets Investment for November comes at 20.7% Vs 20.9% expected. Previous reading was 20.7%.

Overall expected or above expectation figures.

COT Report Close of Tuesday(08-Dec-12)

Latest CFTC report as of 13-Nov-12, Tuesday, shows net increase in JPY short but a decrease in EUR shorts.

• JPY net short 90K vs 79K prior
• EUR net short 33K vs 67K prior
• AUD net long 92K vs 77K prior
• GBP net long 27K vs 10K prior
• CAD net long 57K vs 62K prior
• NZD net long 21K vs 19K prior

EURUSD Bounce form 200EMA

EURUSD Daily

Good amount of buyers were lined up at 200EMA which took the pair from 1.2977 to 1.2945. 


On daily charts, 200EMA is right at 1.2975. Previously also pair has found difficult to maintain below 200EMA. 

EURUSD Back In Channel

EURUSD Daily

EURUSD is back within the channel after a false breakout. It backed off right from previous highs of 16-Oct of 1.3139. 

I shorted at that point and booked my 2 short for +140 & 80pips, a total of +240 pips. Previous setup [here].

CHFJPY Channel Trade

CHFJPY H1

Here pattern is almost similar as in USDJPY. See setup [here]. 


A flag pattern on daily and channel on hourly charts. As long price remains in this channel, flag pattern is valid and price may see more upside. 

USDCHF Head-and-Shoulder in Making

USDCHF Daily

On daily charts, looks like base in formation around area 0.9235.

Previously this area was a strong resistance on any spikes and now its a strong support. Price has bounced 3 times from that area. Looks like pair is making base there. 

Also on daily charts, looks like a potential head-and-shoulder in making. Left shoulder & head are complete and price is bouncing to make right shoulder.

I will be watching this pattern closely next week.

EURGBP Channel Short Trade

EURGBP H1

Price has broken then channel downside and lower trendline is now support-turned-resistance.  

Price as tested it once and got rejected.

GBPJPY Channel Short

GBPJPY Daily

Initially I went short this pair at 132,48 on test of channel's upper trendline. Previous post [here].

Since then pair is moving along with trendline. 


Now another resistance area is coming up which is high of March-12. This area might provide some pullback to a over brought pair. 

USDJPY Channel And Flag

USDJPY H4

Price is consolidating in a parallel channel on H4 chart. It looks like a flag formation as well. 

The move from 79.21 is consolidating after hitting 82.83, recent highs of 22-Nov. Since then price is consolidating in channel. 

EURUSD Short Trade Update

Initially I went short this pair at 1.3041 on touch of channel's upper trendline with a stop above the previous highs of 7-Oct. Details [here].

I added another short at 1.3105 with same combined stop. My avg position size now is 1.3072.

European Equity Closed Marginally Up

European equity market closed marginally up for 5-Dec.

• French CAC +0.1%
• UK FTST +0.2%
• Italy MIB -0.6%
• German DAX +0.1%
• Spain IBEX +0.1%

GOLD Short Trade

GOLD H4

I am watching this setup from past session since it broke and closed below the support area. Details [here]. 

Now looks like, price is bouncing up to the upper resistance area. I expect that area to become support-turned-resistance. That looks like a good short opportunity if price pulls back from that area. 

EURCAD Short Trade (Update)

EURCAD Daily

I am watching this pair from past sessions and I went short at 1.2990. Details [here].

On daily charts, pair looks little bit over-brought and might be in for a retracement. Previously on many occasions, pair has failed to break the resistance area.

On hourly charts, price is consolidating in mid of the channel. I plan to add to my short positions on touch of resistance area again. 

GBPJPY Channel Short

GBPJPY Daily

On Daily charts, GBPJPY is hitting a ascending channel's upper boundary. 

This channel has restrained price action since June-12. From past few session pair is trading near to upper boundary but is not able to break above it. Looks like in consolidation phase. 

AUDJPY Short Trade

AUDJPY H4

I am watching this setup from past few sessions. Details [here].

Price is constantly bouncing from trendline but it is failing to make new highs. This could be a sign of some retracement.

GOLD Broke the Horizontal Support

GOLD H4

Gold has broken a long held horizontal support level of area around 1705. 

This area has provided support on pullback on several occasions. Now after broken, it should be a case of support-turned-resistance.