weekly trading lesson

An updated AUD/USD chart from last week shows how the AUD broke down through support and sold off dramatically.

The AUD is still the weakest of the currencies with the USD showing continued strength. A quick look at the USD/JPY shows the the JPY is stronger than the USD which means that the AUD/JPY, which we looked at earlier in the week, appears to be even weaker than the AUD/USD. But the time to enter into a trade is not now after a big sell off. We have to keep our emotions in check and wait for the right moment. I like to wait for the market to rally up to a resistance level and then sell. That way my risk is smaller and I put myself in a position to be in on some of these big moves that these markets are known for. This is the main reason we recommend in the DailyFX Power Courses to trade with the daily trend and not against it. Catching one of these trades where you can actually profit by over 1000 pips in a couple of days sure makes up for a few losing trades. The two keys to trading are to always trade with the daily trend and to use good money management on the trade. It's been a good month for trend traders as we see breakouts in many pairs, all in the direction of the trend as seen on the daily chart.

• free demo account
• forex courses
• open an account
• forex stream
• free webinars