During the today's rate announcement we will be looking for any skewed risk reward opportunities in pound. Yesterday's price action in FX and oil came as lightning bolt and dollar was totally whacked. To sustain the momentum certain level needs to be hold and we would like to play against those levels to have risk reward ratio in our favour. Yesterday, break of...
Crude oil is the center of trading universe right now. Equities are dancing along the tune of oil. In every up or down moves, they are currently joined by the hips ! Our last crude oil trade was right on the target. Today we are looking to trade it from long side leaning against 32 and 31.50 as support. Even thought yesterday's inventory data came in as bearish...
Equities ( especially S&P 500 ) have witnessed some havoc during recent Friday sessions. ECB hinted yesterday about easing further and earlier ( probably during March meeting ) and memo well received by equities. Along with equities, AUD/USD and USD/JPY got much needed respite from constant selling. These two pairs are trading the equities very well for last few...
For WTI crude oil, 30 is very critical level. Can't tell whether there will be trip to 34 - 36 from 30 or will submerge further. But since equities and other commodity currencies are trading in lock step with oil right now, it is a key to our trading strategy today. Initially we believe 30 will hold the first attempt at least. So here on spike lower, buy equity...
Equities ( especially S&P 500 ) have witnessed some havoc during recent Friday sessions. ECB hinted yesterday about easing further and earlier ( probably during March meeting ) and memo well received by equities. Along with equities, AUD/USD and USD/JPY got much needed respite from constant selling. These two pairs are trading the equities very well for last few...
Equities ( especially S&P 500 ) have witnessed some havoc during recent Friday sessions. ECB hinted yesterday about easing further and earlier ( probably during March meeting ) and memo well received by equities. Along with equities, AUD/USD and USD/JPY got much needed respite from constant selling. These two pairs are trading the equities very well for last few...
This is similar setup to AUDUSD we just closed with 30+ pips. Let's be patient and get long on pullbacks because it looks likeAUDJPY will go to 84 first than going to 82. Good luck :)
Today's 50 pips might come from Australian dollar longs. We are not particularly keen on getting long Australian dollar for long term right now but improving risk appetite after continuous market rout may brighten the AUD/USD long scenario. Trade plan is to get long AUD/USD on pull back near 0.7005 and take it from there. This might dovetail well with a minor...
Everything which glitters doesn't always goes up ! Gold may take advantage of thin holiday trading environment and may be successful in breaking few upside resistance zones. But for patient traders it just will be another opportunity to sell it again. Finally 2016 might be the year when we will see gold being traded sub $1000 level after many years. Whether...
Every day we look at the Forex market and try to draw a plan which could give us few pips during today's London and New York sessions. EUR/USD - Market is still confused and looking for the next break out. Until that happens, we are trading 1.1050 - 1.0800 range. Last week that gave us handful of pips. So looking to sell 1.1050 / 1.1100 and buy from 1.0800 / 1.0775.
We were able to fetch more than 120 pips on our USD/CAD long trade from yesterday's trade ideas. Our GBP/USD short had conservative entry around 1.4650 and it didn't get filled since it dropped just from 1.4600 back to 1.4500. Today also we are going to play the same game. Again best short entry is near 1.4640, but depending upon the circumstances, we are also...
British Pound is looking soggy and if it can't throw 1.5200 out then the test of 1.5000 is coming sooner. There are two ways to implement the trade. One way is to short it near 1.5200 with tight stop above and another is to put on a position between 1.5200 and 1.5250. Right now we are considering the former option unless pound jumps directly near 1.5250.
Fundamental view argues for lower price in crude but now it's time to be cautious shorting crude because it is near 40 and risk reward doesn't favor the short trade around this levels. Our strategy is to buy any sharp selloffs for a rebound. Understanding of a price action is the key here. There are two scenarios. 1) Crude Oil stabilizes around 40. 2) It goes...
Bounce due to Fed not hiking because of weak data point? Sell it! Bounce due to geopolitical tensions? Sell it! Bounce due to equity meltdown? Sell it! Why??!! Because the price action Sir, is telling us that. Gold is unable to sustain any upside in any sort of meaningful way. We think next big fall is coming and Fed might deliver the coup de grace and end the...
RBA is on hold and New Zealand Dollar can falter because of weak dairy price. These two things can provide good enough upside to Australian dollar in our opinion. To keep it simple, we are long from 0.7208 and would like to add if it goes near 0.7150.
For last couple of months, Gold has been providing opportunities for both bulls and bears. As we pointed out in our previous posts, Gold has been mustering courage and getting help from Fed to re-test the resistance levels near 1200. Now since it has failed 50 WMA (Weekly Moving Average) and coming down, what's the trade? We would like to trade Gold according to...
After mid-week wobble during last week, British Pound has been able to regain its composure. Move from 1.52 to 1.55 was fast and furious. So far pound has been able to digest those gains and if it can consolidate above 1.54 then another trip to 1.5800 is likely. Well that's the opinion but as you know, things can change with just one data point, so jumping in...
Yesterday's price action in EUR is reminder of fickle nature of Forex world. At one point we were 80 pips in the money and then EUR fell like a rock. That's the reason we like to book profit at interim levels and we always lock in profit as soon as the position is +20 pips and then manage the position actively. Anyway, EURUSD didn't turn out to be a Christmas...