Forex Trade Ideas – October 11 – 14, 2013
The US Dollar has now made a “swing high” here, at a very important and critical junction.
As usual ( these days ) the implications are considerable, depending on which camp you’re in.
Off the top of my head, further ( and continued ) downside here would see USD trading “lower” in tandem with “risk” (also trading lower) – which in itself is troubling, as we would “usually” consider “risk off” activity to be good for USD.
In a situation where both USD as well U.S Equities where to fall in tandem ( as we have seen on several occasions over the past year ) it is also very plausible that we see both NZD as well AUD fall “even more”.
There would be absolutely no question that JPY ( The Japanese Yen ) would rise.
Trade ideas “would include” some pretty bizarre set ups – in that I would consider things like:
- short: NZD/USD as well AUD/USD ( where USD falls…..but gulp – commods fall even more).
- long: GBP/USD as well EUR/USD ( where USD falls, and these two take in flows straight up).
- short: USD/CHF ( where USD falls and the Swisse France takes safety trade ).
- long: JPY vs nearly anything under the sun, but especially AUD and NZD.
It’s far to early to tell, and the outline above is highly speculative but…..should further evidence of this unfolding be seen – I WILL IMPLEMENT TRADES IN NO LESS THAN 12 PAIRS IN A HEARTBEAT.
You’ve got to “at least” have a trade idea / plan in mind, then allow it to either play out or fail, as opposed to just turning on your television. Getting this one right could generate some serious, serious profits but again……………you’ve got to have an idea, a plan – before heading out on the field.