With the presidential election tomorrow, I didn’t really expect too much going in USD pairs, until after that. Boy, was I wrong. Dollar made strong gains against EUR, CHF and GBP. I thought this would be nothing day, kind of like the stock market turned out to be. Speaking of election, I believe Dollar will continue to get stronger, no matter who wins. After all, we will have new president and for some time at least there will be this feeling positive changes which should benefit the USD. Three- four months down the road, once everybody realizes it is business as usual after all, confidence will dive again. Call me cynical, but until government shows political will to fight debt(at least not to pile up new one), long term USD outlook remains abysmal, although it might go as high as parity with Euro in near term.
In took couple of trades in GBP-JPY Sunday afternoon my time.
First one made 100 pips and second 60. For the second trade I was targeting 150 pip gain, but didn’t get and settled for less. Not a moment too soon, as it turned out, because from that point price fell like a rock to about 156. I marked a sell arrow on the above chart as “A”. This would have been proper sell point for anybody trying to catch this down move, at 160.90. No, I didn’t take it, since for now I only trade UP here, but marked it as a matter of interest.
Swiss Franc is under some pressure and I think it will continue, an order was placed to buy EUR-CHF.
My intended entry is at 1.4915, objective 120 pips. Few years ago this was very boring pair to trade. You had to use weekly charts to have trades with potential of 120 pips. Not any more. EUR-CHF is very dynamic and extremely liquid cross. By some accounts, the volume here is higher than USD-CHF, but I don’t know for sure.
Election tomorrow, but before that we will have rate decision from Australia. Expectation is for cut to 5.50%. AUD was stronger then European currencies today. This is reward for cutting rates. A year ago raising rates led to stronger currencies, now it is the other way around. Mad world. Don’t forget to vote!
Mike K.
I have an account with CMS. Do you thik they are good broker compared to others?
I used to trade with them a lot, from before it was CMS. I believe it was originaly called ICS. I like the charting software, so if you are into a lot technical analysis and even programing, you will like it. But other functions are lousy. Server is very unstable and crushes, or gets overloaded during busy times. Charting services are often unavailable. On the plus side, they were good when I had a dispute. Out of something of 15-16 complaints I had, they honered all but one. I still have a small account with them, by I don’t really trade it.