All Entries Tagged With: "currencies trading ideas"
Sterling could recover a bit, but not too much!
Whenever a currency or commodity or stock moves rapidly and too far, it sets itself up for a period of consolidation. As you are aware, Sterling has dropped like a stone from its peak, and after reaching its medium-term target of around 1.4570 (discussed earlier in this blog), the currency has been moving sideways. Today, it looks a bit better bid
Sterling whips around.
The Forex markets have been known to be very liquid. But today the liquidity was at its lows. Spread on GBP/USD was 15 pips wide for a mere 10 million quote even when London was in full swing. I imagine this must have been the case even yesterday in NY time because the currency just tore straight up
Sterling chops my neck
I have been looking for Sterling to find support around 1.5850 because that area marked was respected several times in the past 20 years. But today was a different story. Incredible as it seems, we were at 1.75 just 4 days back, and today’s low was 1.5260. That is a cool 22 BIG FIGURES down
Still think we should buy STG around 1.5850
This is a brief update. I acknowledge it is silly to project the pattern that the market will trace. If I were to do some wishful thinking, then it will be an ending diagonal triangle like what is shown on the chart
Next dip in Sterling is a buy!
The sharp sell-off in GBP/USD this morning was on the back of comments from Bank of England Governor Mr. Mervyn King that the UK was probably entering recession for the first time in 16 years. The high for Sterling yesterday 21 Oct was 1.7198. The low today (so far) is 1.6199. That’s an incredible 10 [...]
AUD in a complex correction
Traders often lose money when trying to squeeze additional profits during a complex correction. Wave theory is quite clear. Corrections tend to alternate between simple and complex patterns. Also, the market tends to correct a prior impulse wave both in time and price
USD/YEN is a sell on next recovery
Anyone who has traded the Yen knows that it is a different animal from the rest of the pack. But there is one undeniable fact about this currency, it is a trending currency. Once it sets off on a trend, it stays with that trend for a long time.
USD/YEN still a sell on rallies
Sooner or later we are going to get a corrective bounce in USD/YEN. But the downtrend is still strong and we should be willing to try shorts at key levels. If we surge higher today, then you can sell above 101.70 with stops at 101.88.
EURO recovery is only temporary
We have had a fairly straight forward decline in the EUR/USD from 1.4565 area. All corrections till recently have been quick and relatively simple in structure. This means the time is ripe for a complex correction. The euro has been doing precisely this, undergoing a complex correction, from the low posted at 1.3440. You see, a [...]
EURO remains vulnerable
Just to let you know that the EURO will remain under pressure till its medium-term objective near 1.25 is met. Until we get there, it will be easier and more profitable to trade from the short side. When we reach a low-risk sell level, I will inform you through these pages. Spend a few minutes [...]
USD/YEN getting ready for another sell-off
Think the USD/YEN is toppy between here 103.65 and 103.90 and should come off to 102.45 later on.