Equities moved to new highs yesterday, but essentially stayed at that level. They didn’t explode higher or move back down. Today, premarket, equities are down — which means they’re going to open lower, but whether from there they continue down, or begin to rise again, it yet to be known.
At this point, I’m not really sure what to make of any of this because currencies haven’t been reacting to equities in the way I was taught they should. That’s the thing with markets, though. I think I’ll just take all of the baskets at face value, and I might not trade at all as I’m already in a strong trade and it’s Friday
USD [L] – I’m already in a USD trade, but I like what it’s doing, so I wouldn’t mind taking a second position if the opportunity is there. It’s up pretty strong on the day already, but has run into some resistance. I believe this has more room to increase, especially if it can break through resistance
CAD [N] – This appears to be in the midst of making a new swing high, but it’s lower than the previous swing high. It is possible that this heads back up, and by the time the next candle opens, it opens higher and breaks that previous high, but it’s not looking like that right now. That said, it’s also not showing signs of actually moving down much further from where it is now. I still don’t think I want to touch this
Today’s Pairs
AUD/USD – Short
GBP/AUD – Long
AUD/CHF – Short
EUR [N] – I’m cautiously bullish here. This is up again today, and a few days ago showed slight trend-reversing signs, but it’s currently sitting at a level of resistance that’s been pretty strong support in the past. If that was a trend-changing move, then I like this to the upside, but if it wasn’t I’ll look to short next week. I think I should let this one breathe today and see what it looks like next week
GBP [L/N] – Not a ton to say about this today. It’s up again, but still within that range. There could be potential for a breakout — I suppose I’ll see if there’s any opportunity out there — but chances are, it’ll sit roughly where it is for the rest of the day
JPY [N] – Curiously, this is up again today, and it’s up quite a bit. That said, it’s at a level of resistance that’s been both support and resistance in the past, so I’m not sure how much more it can move. I think I’m going to leave this alone for today and see what it does next week
AUD [S] – This dropped big again today, and is about half-way between the previous low it made and the high it made on the pullback. It is at some support, but if it can push through that, this could fall quite a bit today. I’ll see what individual charts look like
NZD [N] – I like this short enough that I’m in a short NZD trade, but I don’t think I like it enough to take a second position. This is showing signs of continued weakness, but it’s also against some support. It’s also not quite as low as the low that was made on Monday, so I’m not going to chase here. I’ll see how it’s behaving later in the day or maybe just on Sunday before I do anything here
CHF [L] – This is up a little today, and while it’s not exactly at a resistance level, there’s some resistance in the past at the level it’s at. I’d need to see something I really like, but I wouldn’t be too upset taking this long