Welcome to another live trading session. In today’s session, we went over the cause of the gaps in the Forex market and how that will affect our trading moving forward. We have been accustomed to trading in less than ideal conditions, but each situation presents its own challenges.
The Coronavirus has stunned many across the globe as the number of infected continues to rise. Scientists are just starting to understand the severity of the virus. As previously discussed, safe-havens such as the Japanese Yen, Swiss franc and Gold garner strength during times of uncertainty.
Read: What Are the Safe-Haven Currencies?
As expected, USDJPY, EURJPY, and EURUSD have all gaped down significantly. Last week we entered short on all three of the aforementioned trades, which led to a total profit of +300 pips. This week will look to enter short once again, but only after our entry criteria is met.
The gaps created by the speculation of the Coronavirus has created an early road bump for this trading week. Not to worry, as today’s daily candle closure will provide clarity for most Forex pairs. We will know what sort of trade setups we can enter this week after observing the daily closure for our pending setups. As always, be safe and trade responsibly!
Check Out Friday’s Blog Post: January 24th, 2020
