Now this "ease" could be because of my "808 state of mind", all the fundamental data lining up with my expectation, being super in tune with the flow of the market, plenty of spicy ahi poke or some random combination of these factors...regardless of what is its I'm doing so well I'm feeling super uncomfortable.
When I am "in the flow" (and I realize it) I try to ignore it as long as possible so that I don't get in my own way and trip myself up. Towards the end of this week however it caused me to feel pretty uneasy about the coming weeks.
Monday dread, something I haven't felt since I worked a 9 to 5! Which means I need to pay attention to it. As a result this weeks update will focus on some themes with a longer time horizon.
During week 3 we closed 5 trades on the small account challenge this week, two of the $EURUSD trades were carry forwards from last week.
I don't really like to carry over the weekend if possible, not really because of the Monday price shock, but more due to the general directionless-ness of Mondays trade.
This means I will be looking for opportunities to buy into any USD weakness over the next month or so. I believe that after the blow out #NFP job numbers and subsequent USD rally we will likely get some pullback into next week, presenting us an opportunity to buy dollar biased pairs for longer swing style trades.
Technically this continuation pattern points to far higher prices. This picture reinforces the fundamental data that is flowing from the central banks.
Put simply if your a struggling trader, making this a core position in your portfolio, on any kind of a pullback with a reasonable trade size, should make for a good longer term buy and hold type of trade.
Longer term this is going to continue to bomb out as the US looks to raise rates and the ECB looks to extend its QE program into next year.
Shorter term there are a number of areas that the pair will most likely retrace to. I that I really sell trades, at the highlighted zones on the chart above, for me the $EURUSD is a sell into strength .
I have taken a very small (5k) position on this for the #smallaccount challenge targeting 0.7200 then 0.7300. this may take a while, in fact it may take longer than I am willing to wait, therefore may be closed at the initial target rather than the secondary.
You can check it out here its worth a read he explores some interesting concepts around risk, his personality quirks and one of those I find the most fascinating is the concept is stepping out of your comfort zone.
A reminder that growth is uncomfortable and often painful, but nothing changes for the better without it!