Talking about Greece and what happened during the weekend, which is a major risk event that could put global markets and the euro under significant pressure. I prefer to avoid trading the euro, we will probably see higher margin requirements from brokers and bad execution. I am looking for some other pairs that may provide a good trade-able opportunities with a bit less insane volatility.
One of the pairs that could provide an opportunity is the AUDJPY, which has been always a good meter of risk around the financial markets. Plotting the AUS200 index on the same chart clearly outlines the positive correlation between both. The correlation was distorted slightly with the start of this year, in January, however the gap is starting to diminish again.
I put both indices just to illustrate the correlation between positive sentiment and the AUDJPY, and in our case sentiment is far from positive, and thus we might see a breakdown in both. That may provide a nice AUDJPY Short trading opportunity.
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Comments
trungtd88
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So up or down for it???
Daniel.B
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I like the idea technician! Thanks for posting! =)
dankerry
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I like this idea too. Any idea what price you would like to short at? I'm thinking about putting in a short order but am wary of the price gapping down...
Meru
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What about the fact that PBOC cut the rates? Will that not influence AUD?
test123xyz
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great idea.. Looks good to short, plus we have two pin bars on monthly and a rising wedge coming down the lane..