Financial ministers from the so called G-7 countries are meeting in Washington to discuss ways of solving current crisis. Calling it G-7 is a little misleading, because there are representatives from scores of other countries present. It is very unclear if a viable solution emerges. At the same time EU is having concurrent assembly of member’s heads of states, with the same agenda. So the trading week will start with a lot of bombastic headlines, a lot of which will be very confusing. I expect volatility to remain high, but smaller than over last few days.
My own trading will likely stay active. For now I still focus on EUR-JPY short term upside breakouts.

This 15M chart suggests entry at 136.50. Depending on how things open I might zoom in to 5M charts and try to get in earlier. This worked good for me last week. By the time Europe opens, though, I might substitute it with GBP-JPY. Why? My opinion is that GBP sell off was overdone and it will likely become stronger than Euro. But I need some evidence of that first. In the meantime I plan to go long GBP-USD at the open.

Target here is 1.7750. Position size is going to be smaller, because of increased risk. This is a daily chart, so more room must be given for fluctuation. At the same time I’m keeping a close eye on Australian Dollar pairs, especially EUR-AUD. Euro suffered the smallest losses of of the major currencies so it is possible it will be “catching up”. At the same time AUD suffered disproportionate losses and I don’t think it will be the weakest link again. This is a line of thinking for the week ahead and not necessarily first few hours after the open. It should be a busy week.

Mike K.