FOREX VIDEO – London Session Review – October 4, 2010

The trend has certainly been down on the US Dollar for quite some time now, nobody can deny that. However, this morning as London opened for the week we found ourselves at the next area of resistance on the long term EUR/USD charts. Just prior to London opening the EUR/USD performed a very nice looking lower high at the 61.8 Fibonacci retracement level from the recent high at 1.3805. While this itself was very tradeable, had you arrived a tad late like I did today that opportunity had already occurred, and now here we were at London open needing a lower low to happen in order to validate the lower high that just had. Once this lower low took place we put together a trade plan to enter into this new short, at least for the duration of the London morning, back to the next dynamic support around the Daily 5ema, 4hr 21ema. We then referred to short term charts as we approached our entry zone but we started showing signs of continuing Prior to our planned entry. Using very 1 and 3 minute charts in this area we were able to obtain enough reasoning using things like ema crosses, stochastic cycles to get into the short at 1.3637 prior to our planned zone of the 50 area, wiggling in basically. 25’ish pip risk for a reward target of about 60 pips, not the worst in the world. End result was a 55-70 pip trade depending how one took profit, and we picked up buyers right off the target as expected, we will see what New York brings. FXBootcamp London Currency Coach- Christian Stephens