Welcome to another live trading session. In today’s session, we went over some of the trade setups that we took this week and then setups that we can take next week.
Due to multiple bank press conferences that were held this week, we had a slower week than usual. That did not stop us from having a home run trade. Our EURAUD short trade was analyzed live in our Forex Trading Room this week and the pair ended up dropping +130 pips. We also suffered a loss of -42 pips in NZDCAD as the New Zealand Bank decided to keep their bank rate the same. Thankfully, we took a long on XAUUSD (Gold) and a short on NZDUSD which lead to +60 pips.
In the later part of the session, we decided to look for setups that we can take next week. We are expected to reenter our NZDUSD and USDCAD short trades as more downside is expected. Since both trades were taken from the daily timeframe, it is reasonable to assume that it may take a few days for our final targets to be reached. We then did a complete top-down analysis of EURUSD. From our analysis, we were able to identify a swing short to 1.05350.
Much of the movement of the markets this week was attested to fundamental events, in particular, the Coronavirus and monetary policy. The unfortunate realization is that the Coronavirus won’t be going away any time soon. This will lead to rocky and unexpected conditions every time new cases or numbers are released. We saw this occurs this week with the New Zealand Dollar as China released it’s adjusted numbers. To counter this as best we can, we will try to avoid trading currencies that are affected the most. With that being said, we hope you all have a great weekend! We look forward to seeing you this upcoming Monday for another FREE live trading session.
Check Out Yesterday’s Blog Post: February 13th, 2020