Jonathan O. Velez

A Look Ahead to Next Week: EUR/CAD

jovdaytrade — Sat, 11 Feb 2012 04:53:51 +0000

EUR/CAD Daily & Weekly

One pair I will be keeping my eye on going into next week will be EUR/CAD. If you take a look at the weekly chart, EUR/CAD setting up a nice cone trade and should give us the move up towards the weekly 20-period moving average. I like the action going on on the daily as well as EUR/CAD has put in a higher low. Now that this pair is back above the moving averages on the daily, a pullback to the moving averages and a buy setup will warrant a long entry. First target would be the weekly resistance from a prior pivot. Target two would be the weekly 20-period moving average. From where EUR/CAD is trading now, this move could reward us with approximately 180 – 350 PIPS.

A Look Ahead to Next Week: XAU/USD (GOLD)

jovdaytrade — Fri, 03 Feb 2012 21:01:41 +0000

GOLD has caught my eye. On the weekly GOLD has formed yet another lower high. On the daily, although a few more minutes until the close, GOLD should finish below the 8-period moving average and could give us a move down to the 20-period moving average with the completion of the “cone trade”. (Side Note: the cone trade has become a staple in my trading plan and one of my favorite techniques to implement).

I will be looking for an entry to short GOLD on a pullback on the 4Hour chart. It has broken the moving averages and should give us a retest and some sort of rejection before continuing down to the location of the daily 20-period moving average which coincides with the same area of the weekly moving averages.

UPDATE: AUD/CAD 01.06.12

jovdaytrade — Fri, 06 Jan 2012 21:40:51 +0000

AUD/CAD Daily

AUD/CAD is just beginning its trend on the daily chart. Finally clearing some consolidation to the left. After the recent advance, AUD/CAD pulled back slightly, holding the prior resistance area and forming a nice buy setup off the 8 period moving average. This buy setup allowed for an add opportunity @ 1.04650. Currently up 151 PIPS from original entry

GBP-USD 11-16-11

jovdaytrade — Thu, 17 Nov 2011 00:42:14 +0000

GBP/USD Daily

9.30.11 – EUR/GBP

jovdaytrade — Fri, 30 Sep 2011 15:45:37 +0000

EUR/GBP Hourly

“Patience is a virtue”. Here is a cutout of the EUR/GBP trade I entered with two sells on sunday evening. The red shaded area outlines the sell zone. My first entry came at 0.86896 on a 30 min sell setup; my second entry came on a 4hour sell setup at 0.86750. I looked for targets of 0.86170 and 0.85375 which are the 161.8 & 261.8 Fib levels of the bear elephant bar on the 4hour chart. From my two entry points, day one the EUR/GBP consolidated; day two EUR/GBP consolidated; day 3 EUR/GBP consolidated, day 4 EUR/GBP consolidated … And on the 5th day … She fell !

9/21/11 – Update: USD/CAD (Target 2)

jovdaytrade — Wed, 21 Sep 2011 19:40:17 +0000

: USD/CAD Hourly

TARGET #2 hit. Out almost all of my position. Leaving a small runner on.

: USD/CAD 4Hour

USD/CAD should see a pull back here as the pair is getting far away from its 20-period moving average on the 4Hour chart. Typically whenever a pair gets far away from its moving averages, it tends to pull back in. The moving averages serve sort of like a magnet to price action. We also have the declining 20-period moving average on the MONTHLY chart approaching at 1.00500 which I have outlined. Very light position on and just trailing remainder. Great position to be in.

9/21/11 – Update: USD/CAD (Target 1)

jovdaytrade — Wed, 21 Sep 2011 15:23:10 +0000

: USD/CAD Hourly

USD/CAD has broken above its area of consolidation. It is now into a target area. At the first target area I am out 2/3 of my position and currently trailing my remaining 1/3. Looking for a pullback and another add opportunity. It has had some resistance at the FIG (1.0000) testing that number twice and both times getting hit down pretty sharply. However, still stalking price and looking for add opportunity. Now in THE best position you can be in on any trade (profitable with a break even stop on remainder). Stay tuned …

9/20/11 – Update: USD/CAD

jovdaytrade — Tue, 20 Sep 2011 20:12:36 +0000

USD/CAD Hourly

Entered USD/CAD long at 0.98300 & 0.99200. Looking for USD/CAD to hold its strength and make run up to 1.00250 with a first target of 0.99824

8/5 – Australian Dollar/US Dollar (AUD/USD)

jovdaytrade — Sun, 07 Aug 2011 23:43:20 +0000

: AUD/USD 4Hour

After breaking through to get under the moving averages, I looked for an opportunity to short AUD/USD. That opportunity came on a sell setup at 1.09550. My target from my entry point was the 200-period moving average on the 4Hour chart. From my entry point, AUD/USD rode the 8-period moving average to the downside, reaching my target without much trouble.

Once my target was hit, I looked for an opportunity to get long. At this point, AUD/USD looked a little extended on and was at an area of support. I switched biases and attempted to go long at 1.07600. However, AUD/USD never got going and instead consolidated along the 200-period moving average before making another move to the downside.

7/22 – Euro / US Dollar (EUR/USD)

jovdaytrade — Tue, 26 Jul 2011 14:16:20 +0000

EUR/USD Daily

Last week, the trade of the week was EUR/USD and the huge bottoming tail off the daily 200-period moving average which went to show great follow through strength to the upside. Entering this week, with the elephant bar on the chart, although still below the moving averages, I looked for an opportunity to enter in to a long after a pullback. I treated this as a “gift play”. As you can see, the pullback occurred and there is one doji bar that formed. That bar was once fully red and got erased. This showed strength in the favor of the bulls. I bought over the high of that bar and looked for a target of 1.42800 which was the location of the 20-period moving average. It looks as though this target was a bit conservative as EUR/USD had so much strength and momentum to the upside that it bust through the 20MA with no hesitation and ran another 100 PIPS or so. All in all a great trade that netted me over 150 PIPS.