Things are getting more interesting daily. In the latest twist, US treasury decided to not purchase troubled loans from depressed institutions. That was the original purpose for the money approved by congress. Now it seems the funds will be used for capitalization of companies. Authorities probably realized that 700 Billion was simply not enough to go around, especially with new needs popping up daily. Personally, I can’t keep up with all what is happening, and I don’t see how anybody can make any sense form this deluge of information. Thankfully, there are charts and they can be used for trading. If I wasn’t a technical trader, I’d probably take a long vacation now.
In the last post I profiled a trade in EUR-NZD. Here is how it turned out.
My entry was on a breakout of 2.2085, with an objective of 2.2400. I must admit, even though I expected rather fast trade, it was a surprise to see it come to completion in less than 2 hours. Very fast 315 pips. Couldn’t it be always like that?
Once again Japanese Yen went on a run against all the other currencies. Most victimized were, once again, GBP and AUD. I decided to get on the long side of another cross, looking for a bounce.
Little over an hour ago long position in CAD-JPY was established at 77.30. I’m not trying to find a bottom here, only some short term correctional move. Objective is 100-150 pips, probably closer to 100 pips.
Speaking of currencies that have been taking a lot of beating lately, Pound and Aussie. I’m looking for a play between them.
Buy order is placed at 2.3800, target at 2.4200, or 400 pips. It is shaping up to busy for the rest of the week.
Over the weekend I will take a closer look at GBP-JPY on daily charts. I’ve been getting a lot of emails about this cross lately. While it is very flattering, I’m just another trader and not some kind “beast” specialist, so my opinions must be viewed through a prism of own analysis, before money is committed to trading.
Mike K.
This was a nice call on EUR-NZD. How often do you trade this pair. Also, can you share what kind of money management you use on these trades.
Seems that you take a lot of trades with British Pound. Is this your favorite currency?
Andy, I don’t focus on this pair. Only take trades if there is a high probability set up(in my eyes). Most of the trades featured here are done with no leverage (1:1) or only 2:1. While it doesn’t seem like much money can be made, I only need 1000 pips for about 10% gain. At any one time I can have 3-7 different trades of the kind I post here, so total returnes can be decent. Most importantly, 1-2 really bad trades don’t put me out of business
BJ, I don’t really have favorite currency. When I first started trading forex, 90% of my trades were in USD-CHF.
GBP is extremely volatile and a lot of traders are drawn to it. There is a lot of “action” in Pound crosses, that is why lately it looks that I choose mostly GBP trades. Besides, this blog shows only a fraction of what i’m doing.