Equities rallied yesterday, taking back a lot of the losses it suffered at the end of last week, and today (premarket) it’s up fairly significantly already. This is looking like a risk-on type of day, so that could bode well for AUD and JPY (and CAD). We’ll see what the charts look like
USD [S/N] – This is down again today, and seems like it’s rolling over and reversing trend. That isn’t confirmed, though, and it’s sitting at some support, so I’m cautiously short — I won’t chase anything unless the setup is nice
CAD [S/N] – I’m overall bearish CAD, and while it’s down big today, it’s pattern is giving me pause. The two candles prior to today’s are very strange, and unlike anything I’ve seen before. They don’t seem to confirm movement in either direction. Since it is down today, though, and I’m bearish here anyway, I’ll look for an opportunity to short this (esp. if it can push through support)
Today’s Pairs
AUD/USD – Long
AUD/CAD – Long
EUR [N] – After 9 up-days in a row, this is on a pullback. At this point there’s no telling whether this is a pullback and the trend will continue, a trend reversing move, or a base for this to gather more momentum, but regardless, I don’t want to touch it today
GBP [N] – After trading down 4 trading days in a row, I thought this was finally showing momentum in one direction. I was stopped out of my short trade, though, and today, price is up a bit. Since price is up, I don’t want to short this, but it has pulled back from the day’s highs fairly significantly, so it might reverse back to the downside — if it does that, I’d short this again. I’ll keep my eye on this throughout the day, but I’m not going to pull the trigger this morning
JPY [N] – This is up a bit today, but not reaching highs nearly as high as yesterday’s and the day before. This looks more like it’s beginning to form more of a high base, but I’m not seeing confirmation of this in either direction. I thought it’d drop on the strength of equities, but that doesn’t seem to be happening. I’ll leave this alone for today
AUD [L] – This is on it’s second up-day in a row, and while overall it’s looked weak, this could be strong on the back of equity’s strength. I’ll look to take this long in the short-term
NZD [N] – Similar to AUD, this is on it’s second up-day, but today’s candle isn’t as convincing. It’s pushed higher and lower today, and is currently sitting near the open and showing a lot of indecision, so I’m going to leave this alone for today
CHF [N] – This has shown signs of strength over the course of February, but today’s candle has a fairly long upper and lower shadow and is sitting near the open (down slightly, technically). This could continue to push higher, but it’s not really showing signs of doing that. I’ll glance at this later, but I think I’m going to leave it alone for the most part