LONGER-TERM - Though the short-term trading from last week was a little rocky, the longer-term trades are shaping up and starting to look good. Interestingly enough, both longer-term plays are off recently established record lows. I am long AUDNZD 1.0514 and long EURCHF 0.9860. I really like both of these trades and will continue to look to hold over the coming months. Other trades open at the moment are shorter-term and have yet to show any decent follow through just yet. The SPX500 short is chopping around and continues to show signs of topping, while the latest attempt at a USDCAD short is showing promise but has yet to deliver.
LONNIE REBOUND - There is so much going against the Canadian Dollar at the moment, with ongoing oil declines and a more accommodative Bank of Canada policy fueling the USDCAD push to fresh multi-year highs. But for me it's hard to avoid trading these setups, even with all the pitfalls, as markets always have a way of turning around when you least suspect. I don't believe we will see any major rebound in the Canadian Dollar that alters the current trend, but at the same time, given the severely overbought USDCAD readings, the counter-trend short play is too attractive and well worth the shot. I would probably grow concerned with this latest short position if USDCAD were to establish a daily close above 1.2600. The 10-Day SMA comes in around 1.2150 and I think this is a very realistic downside target for the short position.
This analysis is for informational and educational purposes only. This is not a recommendation to buy or sell anything. MarketPunks is not a financial advisor and this does not constitute investment advice. All of the information contained herein should be independently verified and confirmed. Please be aware of the risks involved with trading in currencies, stocks, commodities, cryptocurrencies and sports. Do not trade with money you cannot afford to lose. It is recommended that you consult a qualified financial advisor before making any investment decisions.
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