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TRADE ID: 001 | GBPUSD | SELL | ENTRY: 1.4542 | SL: 1.4615

Daily and 4HR charts below show downtrend movement, while 1HR shows our setup. As shown, this is a countertrend-break trade. Red dynamic resistance trendline provides our stop.

The dollar has been weakening for, well, the whole year really.  These trade setups are based on a reversal or at least a retracement on that trend.  The reason I’m looking to take these trades now is based just on the fact that I believe the US stock market to be oversold and I don’t think the DOW is going to be able to stay above 10,000.  Also, pairs such as the USDCAD are showing some dollar bullishness.  Obviously, because these are counter-trend trades, lots of care should be taken when executing these, and I won’t be taking large positions on any of these trades until I see solid dollar movement to the upside.

Charts below show the daily trend and the hourly entries.  Stops would be placed above the recent highs and lows for these pairs.  A close below the green lines are entry points for me.

Update: Unfortunately I was not at my trade station when these pairs broke below their 15min entry points, will have to wait for a retracement and see if the opportunity for short term entry comes up.  However, daily and hourly entry points for these trades are still valid, waiting for a break or bounce.

Update 11/1: While price did break down below the daily and hourly trendlines for these trades, I’m not convinced that this has not been a false break due to volatility with dollar.  At the moment, I’m looking for a trend continuation trade on the dollar pairs.