Category in Trade Ideas

EUR makes gains across the board as progress made on bank-plan

Reuters reported that the EZ is making significant progress in coming up with a plan to tackle ailing banks; EUR/USD consolidated it’s steady gains of recent days and is still targeting trend highs at 1.3830 (see chart). A clean break above there targets 1.40, always important psychologically and a magnet for options market; EUR/GBP regained

Levels to watch during Asian trade

USD/JPY: Trying to form a double-top at 103.35 and some heavy profit-taking was reported yesterday in many Yen crosses; USD/CHF: Trying to close below previous lows at .8880; AUD/USD: Short-term technical resistance at .9170 and the 21-dma is always relevant, coming in near .9190 today; EUR/USD: Targeting recent trend highs at 1.3830

GBP/JPY intraday: More gains looking likely

GBP/JPY has breached recent daily highs at 169.15 and closed above there; USD/JPY has had an intraday pivot in recent sessions near 103.00 and the close above there makes a test of 103.70 increasingly likely; 1.6410 has been the level I’ve been watching in cable and the close above there makes further impulsive gains increasingly

Silver: Contrarian trade possibility

Despite comments from renowned Fed-watcher Hilsenrath that we may see some tapering sooner rather than later, Silver still managed to rally by 2.5%; I’ve heard some second-hand reports which put Silver shorts at quite severe levels heading into the holiday season; Trailing stops are reportedly large above $20.50. I haven’t been actively trading it recently

AUD: Still soft on the crosses to start the week

AUD/NZD is starting to spend a bit more time below 1.10 suggesting that more losses are possible; EUR/AUD is also consolidating above an important technical level at 1.5030 and more gains are favoured; AUD/JPY is trading sideways still and not following the lead from other JPY pairs; AUD/USD continually runs into solid selling interest during

GBP/JPY: Good risk-reward for the contrarian bears

Looking for extremely over-bought or over-sold conditions can be a very profitable exercise in the FX market. Of course there are plenty of false alarms but if you trade them properly, these signals can be very profitable. Even though I’m a medium term GBP bull, the short-term signals are looking increasingly bearish but as yet