Economic calendar is really full for this week, but in all honesty, not much of it looks like real market movers. Possible exceptions are Japanese GDP numbers on Monday and Michigan Sentiment on Friday. Frankly, currency have calm down dramatically over last couple of weeks, so scheduled news releases might not produce massive moves, barring any huge surprises. This is good news for people who read charts, since we rely on rather orderly price flow. Of course there is always a chance for developing story to wreck havok with the markets, but this is something we have to learn to live with at any time.
The much beleaguered Pound showed some signs of life late on Friday. Short term indication of reversal is evident in EUR-GBP. This pair has just made an all time high and I think is going to take a break. Historically this has not been the best cross to trade, but over last few months daily ranges have increased substantially, and with large pip value, about 14.65 per pip on standard lot, it is attractive.

I have a sell order at 0.8603 with an objective of 0.8530. Decent target using 1H charts. Daily chart looks very promising as well. This reversal might be much bigger, as low as 0.8200. I’ll leave it for another post.
For all the talk(writing) I did yesterday about AUD-JPY, relatively short term trade I’m looking for at the moment looks a little better on NZD-JPY chart.

Kiwi seems a little bit stronger than Aussie and the set up is more to my liking. I’m looking for a breakout at 50.15, but if the price moves lower before I will be buying it at 48.80. This trade has an objective of of 49.80, while the first one is looking for 51.10. Should that happen, consideration will be given to 52.15, possible extension on 4h charts.
Virtually identical situation is present on GBP-JPY graph. Also two trade strategy, buy 134.80, to 137.00 and buy 137.60 to 139.50. I’m not sure if I’ll trade that, however, it all depends on how many other trades I’m in at the time. If I do, it will be on another platform, since here I trade only short term beast breakouts. Besides, as always on Sunday,. I’m looking for promising gaps on the open and that might keep me rather busy.
I’ve added “The Lonely Trader” to my blogroll. Those pages are far more multidimensional than my simple trading diary. Absolutely worth checking.

Mike K.