Over last few weeks I have been on the lookout for long trades in Pound pairs, with mostly decent results. It has hit either all time or multi year lows against just about everything else there is to trade. It is possible a bottom was reached, but this theory will be tested over next few days. In face of ever deteriorating banking situation in UK (rings a bell for those of us in America), British Treasury is ready to extend another lifeline to ailing banks. Latest report calls for drastic revision of the terms of last October’s bank bailout and says at least £100 billion of new lending will be guaranteed. Move is designed to facilitate credit flow and boost public confidence- mantra we have been hearing over and over since, what, October? What is important for currency traders is the impact it will have on the Pound. It will either confirm GBP’s rebound or push it over the edge. At this time I don’t see any imminent trades in Sterling developing on charts, so I can afford to wait and see what happens after the open, without getting myself into guessing game of how will the market react. I will, positively, look for customary, if tedious buys in GBP-JPY, but outside of that, for today, my interest in anything from the Isles is limited to soccer. As of this writing Spurs are playing Portsmouth, with no score yet. Great game, though.
I’m looking at little longer term set ups. This one is on daily chart.
Kiwi was hammered last week, but chances are this is the extent of it. To put this theory to the test, plan is to short EUR-NZD just under last days low. On this platform it means a sell at 2.3950. Objective is two pronged with first one about 2.3300 and then 2.2500. Since this is a daily chart I don’t expect quick resolution. From few days to couple of weeks is the likely time span.
Another potential trade is in AUD-CHF.
Here I want to buy at 0.7625. Target is 0.7815, or 190 pips. Trade will be taken on 1H charts, to limit downside. Aussie looks good across the board, AUD-JPY could be a buy at 61.70, EUR-AUD a sell at 1.9485. All on hourly charts. Opening gaps are always a possibility after the weekend, something to watch for.
Mike K.
Don’t want to stray from topic of this post, but I was under impression that you would share the story of how you became full time Forex trader, after working on fishing boats. Good one at that. One of these days I’d like to be able to make this jump. Perhaps your story could provide a blueprint?
That’s right, Mike. Instead of making fun of me, tell us how it happened. I’m sure it will make an iteresting reading.
OK, I will post it later in the week. It is quite a long story and will take entire post. But it didn’t happen overnight, took me forever.
I saw fxmadness got a mention on the tradinggoddess stock blog! I would say, someone is watching!
Congrats.
Thanks for pointing it out, Ollie. I looked at it. Seems an unusual site, for a blog, if it is a blog. Outsiders can publish posts. Kind of like forum…
No new trades in Pound, Mike? I’m still trying to buy it. Think it will get stroger.
She has “invited guests” post pieces, mostly, the guests have their own blogs and just contribute on her site.
Andy, you might be right. I’m waiting for now. Besides, it ia impractical to post all mt trades here.
Ollie, interesting. Not a typical set up. But what do I know about blogs?
Looks like a wise decision not buying Pound. For now at least.
Mike, some gaps were present after the open. Did you play them? If so, can you show an example?
Yes, in next post.