Here is a nugget of information I stumbled upon recently. Reserve Bank of Zimbabwe commended both FED and UK financial authority for following the lead which they, Bank of Zimbabwe, established couple of years ago. What follows is a part of the news release:

“Here in Zimbabwe we had our near-bank failures a few years ago and we responded by providing the affected Banks with the Troubled Bank Fund (TBF) for which we were heavily criticized even by some multi-lateral institutions who today are silent when the Central Banks of UK and USA are going the same way and doing the same thing under very similar circumstances thereby continuing the unfortunate hypocrisy that what’s good for goose is not good for the gander….
As Monetary Authorities, we commend those of our peers, the world over, who have now seen the light on the need for the adoption of flexible and practical interventions and support to key sectors of the economy when faced with unusual circumstances.”

Well, Bernanke&Co can sleep easy now, scoring this high praise. Perhaps we should pay more attention to what Reserve Bank of Zimbabwe is doing in the future? It is not my intention to belittle Zimbabwe, but find this report a little humorous.
Euro got much weaker on Friday and it’s possible this trend will continue. I’m going to try trades on a short side in EUR-CAD.

This set up includes 2 sell orders. If the price moves up I plan to sell it at 1.5850, with an objective of 1.5680. Should the price keep falling, there is a sell order at 1.5645. This trade would seek about 100 pips gain.
I’ve been covering GBP-JPY a lot here and today is no exception. First a look at 4H, where we had an interesting development. For the first time in a long stretch, price on this time frame moved above previous high – points A and B on the chart.
 
This in itself doesn’t guarantee reversal here, but it would be the first step in establishing price turn around. Currently there is a sideways movement. For somebody with bullish outlook break above 148.70 might be good entry point for this magnitude of a move, as the chart indicates potential rise to as high as 158. I’m not going to take this trade, because price can easily slip back to the black circled area, and remain there for days or even weeks. I think that 1H chart presents better opportunity.

Entry here is still the same at 148.70, but objective would be much smaller at 152.00. More importantly, here I can have decent stop for the trade. Currently price is still some ways from the entry and so precise S/L point can not be chose yet. For that I must wait for farther price development. However, with 300 pips objective, I’m confident good spot for stop can found in 100-150 pip are below entry.
As always on Sundays, I’ll we be looking for opening gaps. If I find attractive situation in GBP-JPY I might forgo this trade and play with the gap. Another thing, should I take this trade it will be on another trading platform. Here I trade only very short beast swing and don’t want to confuse myself placing trades using multiple time frames in the same account. Just trying to keep it simple.

Mike K.