EUR/USD - Daily Candle Chart 6th April 2009

EUR/USD - Daily Candle Chart 6th April 2009

I hope you followed my trade on Friday on twitter (something I will be doing more of in the next few months across a variety of pairs and commodities), following the release of the NFP figures and where I used the 5 minute charts for my entries and exits.   Whilst Friday’s daily candle closed marginally higher on the day we did in fact make money on the short side which highlights the opportunities that one has to look for in the shorter time frame charts, whereas when looking at the daily chart as I do here for most of the time we are looking for a longer term trend rather than shorter term, scalping opportunities.   The close of Friday ended the session above all three moving averages and whilst the low of the day penetrated both the 9 and 14 day, the fact that these have now crossed with 14 above the 9 now provides us with a bullish signal for the longer term, which has been confirmed in this morning’s early trading.  Indeed, the eurodollar opened gapped up this morning (which very rarely happens) and is often called a “rising window” by Japanese chartists.

Trading this week could be difficult for several reasons, not least of all because it is a short week and many markets are closed on Friday with the likelihood of traders taking early holidays, making trading volumes relatively thin this week.  In addition there is very little fundamental news on the economic calendar for the euro vs dollar and which is covered in the euro to dollar site in more detail. As a result we could see a week of sideways consolidation, and I would therefore suggest that any trades are viewed as short term opportunities as opposed to the start of any longer term trend and therefore take profits early.  My suggestion for today is to attempt small longs looking for your entry and exit in the hourly charts, placing your stop loss at 1.3187.

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