Hi, we can wait weeks sometimes for traders to line up & then (of course, everything then arrives at once!).
There are loads of potential trades arriving now from both weekly & intraday analysis. In fact there are probably TOO MANY! The $USA has had a steady drip, drip of positive news in recent weeks. That combined with the continuing saga of the Euros woes has seen some big $USA gains across all pairs. So how do we play this?
Cautiously is the answer. Everything looks so obvious now that there is a temptation to dive in and take lots of trades & there is the possibility that most could work, HOWEVER as we are cool, dispassionate, cold hearted forex professionals we are not going to be enticed by this forex temptress!
There is always the chance after such big moves that the $ could simply reverse back down again.
The best way to play this is only be in one trade for or against the $US at any one time OR if you take a number of trades in the same direction make sure that the trades combined do not exceed you usual risk limits.
For example I never risk more than 3% in total for my open trades. Therefore if I decided to short the Gbp/$, Euro/$ & $/Aud then I would only be able to risk 1% per trade.
Of course, once a trade has moved the stop to entry or locked in profit we CAN then open another trade even on a correlated pair.
Please watch the video below for my analysis for the week ahead.
Analysis by http://e-forextraining.net/free
