Last week has been an exciting week with NFP data release and causes US dollar strength to weakening with some group of players shout: SHORT! As fed interest rate decision is going to announce on next week, 16 June. A lot of shortist (market players that short USD pair) are currently covering their position to realize some of their profits.
During last Friday NFP data release did I short? My answer is No. In fact, I long…you might thinking deep inside of your heart that I must be mad…but that’s my play style for my home-ground forex pair, USDSGD and USDJPY. This whole year I only focusing on long position and I play a lot of counter-trend for this two pairs.
The thing you have to ask yourself when you are trading in Forex is, who do you get supply from? Who is on the other side of your trades? 9 out of 10 people don’t really care or don’t bother to ask or think about this question and that’s why only 1 out of 10 people consistently make profit out of these 9 people. That’s to say too, how I come out with my strategy and how I collect my position since April and profit largely on May.
Below are the USDSGD and USDJPY chart where the price has come into demand zone and prepare to rally with not many shortist dare to short at current moment and most of them want to realize their profit since last Friday or past few days. Having say that, it doesn’t mean that USD will rally strongly, if ideal case it will go back to the peak before NFP data release last week but chances are slim as most of the market players think that Fed interest is not going to hike this month, most probably and nearest to date will be on July. But no one can time market exactly so let’s time do the talking.
Below are the chart for USDSGD:
*The red area symbolize demand zone.
*The red area symbolize demand zone
Also, I am looking at Crude Oil which I believe there is interesting key level to watch ahead where it is undergo pull back after rally above 50 for the first time. There is possibility to test demand zone area for the first time after it is able to close above 50 and see whether it can hold or not. If it is able to, high probability it will be a fierce rally after that.
I am going to hold a Forex 101 webinar soon, for those who are interested to know about basic Forex are invited to join this webinar, I will be sharing the thought process behind why I long USDSGD, USDJPY and also why i prefer to short crude oil for the past 1 year and when I am going to long it. I will be sharing my trading journey with myfxbook statistic during the webinar and what you can learn from my trading mistake and my turning point that make me consistent to have a positive return after that.
I will be announcing the date and time at the email, the upcoming webinar will only cost you 49USD/66.50SGD