AUD,NZD/EUR/USD/FXWW News/JPY crosses/Technical Analysis/Trade Ideas

Hard to find any rhythm in this market

It’s definitely starting to feel like ‘holiday’ markets and I know I’m not the only one who is struggling to find any rhythm. I have a feeling that I’ll be running smaller and smaller positions through the end of August when the market will return to full strength again.

I will look more to the ‘technical’ trades during this period, looking for decent swing trade opportunities with good risk reward. Presently I’m long EUR/CHF after a base formed at a 61.8% pull-back near 1.2345 and I’m short EUR/JPY, with a potential H&S on the daily chart. I cut my EUR/USD long for a small 30 pip loss this morning and I’m still long AUD/USD, with a stop at break-even below .9000.

I’m expecting today to be very quiet in Asia although the market will eye the RBA minutes carefully given the ‘jokes’ which Mr Stevens made about deliberation times.

  1. Hi Sean, I guess one has to be bearish EURGBP before getting bullish on GBPCHF. Can you find a reason to sell EURGBP at this time? How about your 0.75 target from a while ago?

  2. Long term I have no doubt that EUR/GBP heads back towards median levels at 75 but what happens the next 250 pips? No idea I’m afraid. And trading this cross is so slow and takes up part of my limited attention span that its just not worth it for me

  3. GM Sean. Just a question on psychology.
    We all know emotions take over from logic as soon as you commit to a trade. But following a trade to its logical conclusion is really the best thing to do (i.e. ride the trend, not exiting too early, etc)

    What tips do you have to keeping yourself Zen like in the middle of a trade?

  4. Keeping myself what Chngster 🙂 Very good point though. I rarely ride a trade to its ultimate conclusion which is honestly the one thing that stops me making huge profits as opposed to decent profits. It’s very difficuly psychologically to watch a trade move 10 big figs and then not book profits, but even load up more for next 10! Very difficult

  5. Yeah I manage my expectations of that by thinking that they are once in a blue moon opportunities. For example like that friggin time the SNB raised the floor, I really shoulda went ballistic even though I entered late…the next 600 pips were a given. And probably again that day a few months ago when we traded the BoJ announcement. Those were key moments.

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