Wednesday, April 27, 2011
Trend for 27th of April 2011
Another nice day for day trend traders! Data from Great Britain caused British pound to appreciate among all currency pairs. A news trader would have made really nice cash in the event. My favorite pound pairs: gbp/usd and gbp/jpy rallied tremendously. You needed some technical knowledge how to place orders today before news hit the market. If we take gbp/usd the most logical place for a buy stop order would have been at 1.6485 level. You could easily exit at 1.6555 level with 70 pips of profit. I will talk about exiting market in my future posts this week.
The same can be said about gbp/jpy. Had you put your buy stop order at 134.70 you would have exited at 136.00 level with one hundred and thirty pips of profit. Even though the news came from Great Britain, a lot of currency pairs were influenced by it, especially Japanese yen pairs. Japanese yen has been in some minor uptrend recently, but it looks that the trend has reversed. Yen was the biggest loser of the day.
Silver move down stalled and the commodity is ranging between 44.58 (low) and 46.25 high. One could attempt tiny longs above the resistance. I know that there is also a possibility to go down, but this is purely day trading and since silver is in a long term uptrend I do not want to do it. I’d better wait for opportunities to buy the commodity. We have yet to see what will be market’s reaction to Federal Open Market Committee Rate Decision, which comes at 16:30 GMT. Reaction can come later in the day or tomorrow, but I believe that market will move after the news is released. So, be aware of this market release and look for opportunities to trade it in the direction of the market.
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Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.