Yesterday, equities closed lower yet again (after gapping down over the weekend). Today, premarket, equities are up, but we’ll see if that equals strength or if it’s simply going to gap up and then head back down. I’m going to lean toward the latter (I suppose it’s largely hope, considering the trades I’m in)
USD [L/N] – This broke above the next level of resistance and is looking strong. This bodes well both for my current trade and my risk-off sentiment. I don’t think I’ll take a second position in USD today, unless something looks great, but I’m happy about the trade I’m in
Today’s Pairs
GBP/USD – Short
GBP/JPY – Short
CAD [N] – This doesn’t look great to me right now. It’s in a bit of a low base, and while it’s on a strong up day right now, it’s up against some resistance. I don’t feel confident about this in either direction, so I’m going to leave it alone for today
EUR [N] – This is up a bit today — it was up a lot more previously, but is currently sitting near the open. I don’t like this enough to take a new position on it in either direction, but my current EUR trade is moving nicely in my favor, so I’m going to continue to monitor that
GBP [S] – This is on a bit of a pullback since breaking out of it’s range last week. It’s currently sitting on some support, though, so if it breaks that level, I could see a case where this moves 50+ pips. I’m not going to chase anything, but we’ll see what this looks like paired against USD or JPY
JPY [L] – This has been strong over the last few days, but is currently sitting at a level of resistance which has also acted as support in the past. If it breaks that level, it could have a ways to run, so fingers crossed, but I’m not sure if I like this enough to take another position — that said, if we truly are in a risk-off day, this shouldn’t have a problem breaking that level… I’ll see what the individual charts look like
AUD [N] – I’m short AUD right now, and while it did have a large down-move yesterday, today it seems to be stalling out a bit. I’m not confident enough in this to trade it again, so I’m just going to monitor my current trade
NZD [N] – I think I’m becoming bearish on this, but not enough to trade it today. It looked like it was simply on a pullback, but it’s broken through a couple levels of support already (though, it’s stalled out at another level currently). I’ll wait a day or so to see if this pushes through those levels, and if so, I’ll look to short this. I don’t want to be too overzealous today, though
CHF [N] – After pushing up again, and breaking out of some resistance, price is down a decent amount today. Since it’s been heading up, I don’t want to short this, but since it looks pretty weak, I don’t want to go long here either. I’ll wait a couple of days before I do anything with CHF