SB Trade Desk Highs and Lows: 12/4/2017

Highlights include NZDUSD, GBPJPY, and EURJPY.

Each weekend, we’ll share a few examples of our work from the prior week.  Many in this business scream to the high heavens when they make a good call and conveniently ignore when they are wrong… they are charlatans.  Our goal with ‘Highs and Lows’ is to review what we got right and more importantly, what we got wrong.  The following examples are from the Swing Updates, published Sunday to Thursday (here is a Swing Update tutorial).

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Highs and Lows for the Week Ended 12/1/2017 

HIGHS

NZDUSD Daily

11/27 – The NZDUSD rally from the low has stretched into 5 waves so a corrective pullback is favored from nearby.  Focus for resistance is still the .6930s. I’d watch for support however near the top side of the magenta parallel and .6844 (square root level) specifically.

Aftermath – We went short NZDUSD at .6920 and exited 2 days later at .6850.

GBPJPY Daily

11/28 – GBPJPY swept under all of the lows since 10/9 (but not the 10/9 low) before reversing higher and carving a J-Spike.  The low is on the 5/10-7/11 line, which was also support in early October.  This cross is bullish as long as price is above today’s low.  In fact, today’s low could be the secondary low within consolidation that begin at the 9/21 high.  

Aftermath – GBPJPY soared in the days after turning up on 11/28.  We did not trade GBPJPY.

LOW

EURJPY 4 Hour

11/26 – Is EURJPY price action since the September high a topping process or consolidation on the way to new highs?  I’m bullish both EUR and JPY so there might not be a great trade here at the moment but be aware of 133.50 in the cross.  The level is defined by the short term trendline and 10/12 high.  If price trades into and reverses from 133.50, then I’d consider the possibility of something more bearish.

Aftermath – EURJPY actually topped at 133.21 on 11/27 and dropped to 131.72 on 11/28.  However, the 11/27 high failed to hold as the cross ripped to test the September and October highs on Friday.  We did not trade EURJPY.