FXWW News/Trade Ideas

Aug 8th: USD bulls getting squeezed as liquidity diminishes

  • USD/JPY has continued with it’s slide south as trailing stops seem to get triggered every 50 pips in a market caught long. There is little in the way of technical support until 95.00 so selling short-term rallies is still favoured until we get there. I’m still short and in no hurry to cover.
  • AUD/USD has held up reasonably well despite the heavy AUD/JPY selling and though the bears are still in control here, a break back above .9050 will change the outlook. I’m long again and will add on a bullish break, with stops now below .8910.
  • Cable had a wild old ride last night falling to 1.5210 before screaming 300 pips higher! I’ve booked profits on my long position here at 1.5500 and will look for dip-buying opportunities.
  • EUR/USD is challenging the barrier at 1.3350 and these things eventually break. But, resistance should be super-firm near 1.3400/25 so I’m thinking there are better pairs to play the USD-bear card.
  1. Hi Izzy, I’m pretty biased with a bearish USD view so I’m perhaps wrong person to ask. I think we go much higher and its a matter of where to buy. It’s certainly quite likely that we see a dip back towards 15350 but based on last night’s price-action, all dips are for buying

  2. Yeah, buying sterling definitely. The bullish engulfing pattern we saw yesterday on GBPUSD is strong and rare.

    I didn’t close our losing long GBPUSD positions until yesterday. It is against MM principles but I could manage them :p

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