Dear Friends, I think this is going to be a good trade. Here are the reasons that why I like this trade..
1) EURO Weighted average daily- Euro is bearish but look at this Long term blue wedge. I think it should visit the upper band of the wedge and then continuation.
2) EXY broke the topside of the wedge formation too
3) EURO Futures is self-explanatory
4) Fresh low on DXY, Daily RSI. (see red dotted line)
RSI trend diverges the price trend
5) YEN Weighed average visited the resistance and see how many times it tried to break the topside and could not. See the bearish engulfing candle.
6) Enough room for Yen futures to visit the rising trend line and trap shorts
7) Beautiful false breakout of the Japanese Bonds
8) Finally I like this 4 hours candle as it spiked the falling trend line and EMA 14
Thanks for your time friends, With kind regards,
KHAN
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YEN Weighted average
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Trade closed: target reached
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Thanks for following me. KHAN
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We are out of this trade but YEN got to where we wanted it to be.
Been a silent follower for a couple of months now. You are an inspiration to me the way you trade. Great breakdown of how you conclude you reasons for taking on a trade. Its given myself a lot more awareness of how the fx pairs are influenced.
Great trade this was. Thanks
khansalarehsan
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@danielmulkerrins, Many thanks for your great words. Thanks again and it is my pleasure to have you on board. Let me know if you have any question.
erikarter
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Great job, when I saw your idea I had my doubts. But you are the master :)
khansalarehsan
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@erikarter, I appreciate mate. I like you ideas too. Many thanks again.
erikarter
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@khansalarehsan, Thanks, i'm just a newbie and still learning with you specially.
khansalarehsan
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@erikarter, Let me know if you have any question my friend.
keyzar
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Does JP10 represent bond price? If so, I am very confused with the japanese bond alaysis. Just curious, not critiquing. Thanks
khansalarehsan
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@keyzar, Great question. Bonds and Currencies are negatively correlated. The higher the bonds go the lower FX goes. This is the case for all major currencies except Yen. JP10 and FX (YEN) are positively correlated. See below. Bond is heading lower hence YEN is becoming cheaper too.
keyzar
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@khansalarehsan, is there a reason behind the correlation? Many thanks though.
khansalarehsan
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@keyzar, The higher the government debts (Bonds) are the weaker the currency will be. This is working for EUR GBP CAD CHF NZD AUD USD but not for YEN!
Great trade this was. Thanks