Weekly Review Of Trades An Strategies: Upper Resistance Price Rejection

So bit of an interesting week with some interesting price action.

Euro moved lower on a rather down beat Draghi press statement and the pound attempted to follow.

However by the end of the week the stronger than expected NFP gave the markets pause for thought...are we risk on or risk off?

Of maybe should I say cliff on or cliff off?

Let's take a quick recap of a few of our trades this week and some of the strategies and set-up techniques I was using (will cover the majors in week ahead but only covering some of the discussed set-ups here).

EUR/USD
I took a small short off of the 4hr hour chart as it coincided with a test of the upper resistance on the daily chart.


This is actually a nice little play to watch for.

My pivots are formed on the weekly bars and translated down to the 4-hour timeframe (quite a nice and powerful feature of NinjaTrader).

Approaching that key resistance level any multiple signals off of this offered really good risk reward. My target in this case was S1 with a stop above the Pivot.

With thanks to Mr Draghi this played out really quickly and I closed the position on Friday. I think we now sit in no mans land on the Euro with a few conflicting signals, check out my week ahead review for my trading thoughts.

GBP/USD
This offered a nice little entry on a small double rejection. The weekly chart suggests we could be on for a move lower here, but daily suggesting a bounce. We are in a Bearish medium-term trend and therefore I prefer playing positions to the downside.

Really two options with this trade, take it off or let it run but keep stops wide as it is likely to get choppy over the December period.

GBP/JPY
Yen weakness vs. pound weakness, this pair struggled this week. Reality is this still offers good risk reward for a push lower, however, support seems to be strong at both the 131.50 mark and the 130.75 mark. Unless these levels break chances are it will continue to chop sideways.

EUR/SEK
Pair popped higher on Friday, still like this for a move lower, however need to give this trade room to breath or prepare to be stopped out in the money on a reversal.

EUR/CAD
We really liked this set-up last week and it played out beautifully.

This was one of those text book set-ups again. Rejection of the upper resistance level, divergence on the stochastics and good risk reward potential with room below.

These trades won't always play out but they offer such good risk reward when that they offer a really profitable strategy.

If this stands a chance of moving lower it needs to break the 50-day moving average and then the immediate support below. If it does this we are on for a much larger move south.

I've now locked in a lot of profit on this pair in case it reverses and taken some of the profit off the table.

USD/CHF
One of the trades we called in the Live Trading Room was a really nice set-up offering great risk reward potential.

Pair had been rejecting a move lower despite the push to try and break support.

Strong level below offered a great place to put stops below. We closed this trade on a counter signal (circled)..