D. Floyd
Scandinavian Capital Markets
Good Day Traders.
While there is certainly ample price movement, it is not terribly easy or clear to forecast at present. And that's OK; recognizing that is part of being a successful trader. We should be participating when we feel we have an edge.
- Right now, USD pairs are unclear with the exception of AUD/USD.
- Where I see an edge is latching on to trades that will take a 'risk-on' bias tied to the S&P 500. My go-to FX cross for this is CAD/JPY.
- Additionally, we might want to look at the extreme moves seen in GBP of late and consider fading it. In this case, longs in EUR/GBP
AUD/USD has completed a 3-wave correction off the lows (I suggested closing longs on Friday at the forecast target of .6800'ish - prices are now 45 pips lower). Additionally, copper prices look vulnerable to lower levels as well, thus I am expecting AUD/USD to take out the recent lows at .6710
S&P's poised for another push higher after this corrective move lower is complete. I expect CAD/JPY to follow along.
Mean reversion is what I see in EUR/GBP. You could also make the case, as I did on Friday, that GBP/USD is due for a move lower based on the same exact rationale.
Dave
Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.
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