Equity markets closed lower yesterday, actually, which plays into the basing prediction. If today continues in that direction (which, I wouldn’t be surprised if it did) it suggests we’re in a risk-off environment, and people are going to be playing it safe. I’ll keep that in mind when looking at the baskets
USD [N/S] – There’s another level of support here that price seems to be stalled out at. Yesterday, price close almost right at the open, and today, while there’s been movement, price is currently at the open. I’ve been bearish overall on this, but I’m neutral, because the chart is showing a lot of indecision. I’ll probably leave this alone today
Today’s Pairs
GBP/AUD – Long
GBP/CAD – Long
CAD [S/N] – Price made a little rally yesterday and today, price is sitting right at the open. It’s been making lower lows and lower highs for the last couple of weeks, so I’m bearish, but it’s also stalled out/rallied (yesterday) so I’m not sure if I want to trade it today — Maybe I’ll glance at a couple CAD long charts to see if there’s any short-term opportunity there (if nothing else looks better)
EUR [N] – A couple of weeks ago, I would’ve been comfortable going long here, based on where price is within the range it’s been in. Today, though, it’s pushed through support and has made some lower lows and lower swing highs, so I’m not as strong on the ranging environment. Because of these reasons, I’m overall bearish, but the last couple of candles have been bullish, so I’m neutral today. We’ll see how this behaves the rest of the week *Hopefully*
GBP [L] – Price has been moving steadily up, and has pushed through a couple levels of resistance. There’s another level of resistance that it’s currently sitting at, but if it can push through that, there’s a lot of room for this to run. Hopefully I see something that looks as good on the short side to pair this with
JPY [S] – This is in a weird low base pattern — one that it’s been in for 2 months. It’s down a little already today, and is having trouble pushing through some resistance. I like this to the downside if it can push through that level, but until then, I think I want to leave it alone
AUD [S] – I’m already in an AUD short position, and it looks like that’ll continue to be a good trade. Price is down today and is pushing through some support. If it fully breaks that level, there’s a lot of room for this to run, so I’m going to just hold and follow my rules. If (and that’s a big if) GBP/AUD looks really really good, I might pull the trigger there because these basket charts look really good
NZD [L/N] – I’m bullish here because I’m already long NZD, that said, yesterday it closed lower and today it’s sitting at the open. The level it’s sitting at is both support and resistance, but if it can move up with some conviction and follow through, I’m still strong bullish here. It’s been steadily moving higher for about 2 months now, and is showing no signs of slowing down, so I’m comfortable with this. I’m just going to continue to follow my rules for the trade I’m currently in
CHF [N] – I’m bearish here overall, but the last 2 days have been up. It still hasn’t reached the level of the previous swing high, though, but it’s close. The case that potentially could be made for a counter-trend trade isn’t there in my opinion, as there’s not much room there, and it’s up today, so there’s not really a case to be made to trade this to the down-side either. I’m going to just go ahead and leave this alone