The situation in China is not getting better and this is affecting stock markets worldwide. With currencies is slightly different since they cannot all fall and some are getting more affected than others. The biggest victim is (for now) the CAD that is now trading at levels going back to 2003 following OIL’s fate. Another currency that is also affected is the GBP and the AUD to a certain degree since Australia is mainly exporting to China.
I am avoiding the falling knives and the rockets and prefer to trade pairs that trade within borders. Good examples are the Eur/Usd, Eur/Jpy and Gbp/Aud. Longs on Usd/Jpy could be considered as low risk trades and for the most adventurous, longs on Aud/Usd and shorts on Eur/Aud.
Just to brag a little bit about my trading, this week I took 3 trades, all profitable and I am close to achieve my monthly goal. Those trades are based on shorter time frames and I just mention them in my blog without sending emails to my subscribers. I took two shorts on Gbp/Aud and Eur/Aud (luckily I closed them before Friday’s frenzy) and a long on Cad/Jpy. I am not analyzing all pairs, I watch the ones that are used in the statistic tool and monitoring Oil and Gold prices.
The WEF (World Economic Forum) taking place in Davos between Jan 20th and Jan 23rd is considered as a medium impact event but prime ministers, finance ministers and central bankers from 90 countries will be together talking and deciding about world’s economic future. Keep an eye on the news about what they are saying.
I am avoiding the falling knives and the rockets and prefer to trade pairs that trade within borders. Good examples are the Eur/Usd, Eur/Jpy and Gbp/Aud. Longs on Usd/Jpy could be considered as low risk trades and for the most adventurous, longs on Aud/Usd and shorts on Eur/Aud.
Just to brag a little bit about my trading, this week I took 3 trades, all profitable and I am close to achieve my monthly goal. Those trades are based on shorter time frames and I just mention them in my blog without sending emails to my subscribers. I took two shorts on Gbp/Aud and Eur/Aud (luckily I closed them before Friday’s frenzy) and a long on Cad/Jpy. I am not analyzing all pairs, I watch the ones that are used in the statistic tool and monitoring Oil and Gold prices.
The WEF (World Economic Forum) taking place in Davos between Jan 20th and Jan 23rd is considered as a medium impact event but prime ministers, finance ministers and central bankers from 90 countries will be together talking and deciding about world’s economic future. Keep an eye on the news about what they are saying.
The post Falling knives and rockets (Jan 16) appeared first on www.forextell.com.