Another fast day. Many good moves, although some of them are very non directional, most of JPY crosses, for example, which seem to be building very wide sideways ranges. Those ranges are so wise, under normal conditions it would take a week to see this magnitude of swings. But there were some directional moves. For one, seems like judgment day for Canadian Dollar, which really got hammered. My attention was on Australian Dollar, which, indeed recovered some losses as anticipated. My order to sell was triggered.

I rode it form 1.9960 until it looked that the move was done for now. Exit was at 1.9320, only about 130 pips from the bottom. Very good trade for 640 pips. I think there is more downside potential and it is very likely that this could go as low as 1.8000. Timing is more tricky, probably not tomorrow, but perhaps over a week’s time. With markets as crazy as we’ve seen lately, who knows? In case move down starts soon, I left a sell order at 1.9180.
Once again I was also busy trading EUR-JPY to the upside. Simple breakouts using 5M charts.

Two good trades earlier in my day produced 95 pips and 50 pips respectively. That was out of about 400 pips upswing. This was followed by one more trade, but I got too greedy, blew it and settled for 20 pips loss.

Still a lot of news coming out, three more central financial authorities cut rates- Hong Kong, Taiwan and South Korea. Maybe the strangest development of this whole mess comes from UK, where government threatened a legal action against Iceland over the defunct Icelandic banks. All 3 of that country’s banks failed, which led to about 200,000 Brits loosing money they had on deposit in British branches of those banks. Situation in Iceland is bizarre even by standards of current events. In fact, I’ll put some info together over the weekend and post it here.
With one day left in a week I’m going to do more of the same- buying EUR-JPY breakouts on 5M charts. I now it is a little boring, but If I want excitement, I’ll go to Vegas.

Mike K.