Sunday 10 June 2012

Trades I am in/watching next week

USDJPY
This time I will limit myself to USDJPY only since JPY crosses do whatever this pair does. But when I execute trades, I will most be focusing on AUDJPY and GBPJPY.
Daily chart with a weekly inset.

4 hourly chart

USDCAD

Suggestion was to long this pair at 1.0218 to target 1.0360 (the broken multi-day uptrendline). Price reversed 6 pips short of target and now I am short.


AUDUSD

Be definition, I am long biased in this pair


The interesting thing is that Dow30, S&P500, Nasdaq100 and FTSE100 are all in similar if not the same situation which implies correlations are running high among major assets. High correlations mean markets in stress. However, in current conditions it is better to get similar signals across as many securities as possible rather singular signals here and there. Currently, all those signals are confirming each other. Equities and FX may turn south next week (high probability with Greek election mid June) against all my bullish expectations but it does not matter at all. When facts change we change our mind too. Therefore, watch for plan Bs as indicated on charts should markets turn sour.

Good luck next week.







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