Forex Trade Strategies – October 29, 2013

Forex Trade Strategies – October 29,2013

It would appear that the U.S Dollar is making its “swing low” here this morning, suggesting that a bottom is close at hand. This one isn’t likely going to be your “usual” bottom in the dollar as it’s now reached extreme oversold levels as well as an area of sizeable support.

As we’ve discussed here many times – when the elastic band gets stretched “too far” the corresponding “snap back” is usually quite fierce, as many inexperienced traders are caught leaning to heavily in the wrong direction.

Wednesday’s Fed meeting/ announcement “should” likely provide the catalyst, and it will be very interesting to see which way a number of asset classes move with respect to whatever is said.

When looking “long USD” here its fair to say that the currency pairs EUR/USD as well GBP/USD should turn downward, as well USD/CHF to the upside – these are pretty much a given, but the commodity currencies will remain “on hold” until we get more clarity.

Both AUD as well NZD have taken “reasonable” turns to the downside as of late “along with” a continually falling US Dollar so……it remains to be see if these will also “continue lower” as the USD carves out this turn.

I plan to trade this quite aggressively as I expect the USD move to be a whopper. Off the top it usually doesn’t bode well for the gold and the metals when we see the Dollar rise….but if this time we see a “rise on flight to safety” it’s not at all hard to imagine both gold and the USD moving higher together.

I will be watching / posting via twitter for real-time moves , as well looking to celebrate my 1st Year Anniversary here at Forex Kong tomorrow!





16 Responses

  1. Bertrand October 28, 2013 / 8:02 am

    Hey Kong, are you already long usd or waiting until Wednesday before making a move?

    • Forex Kong October 28, 2013 / 8:04 am

      Already long…as I’m very often early – and rarely ever EVER late.

  2. David October 28, 2013 / 8:27 am

    Hey Kong, any specific target on the EUR/USD short? Or pretty much just gonna close it after it looks like the downwards action is out of steam?

    • Forex Kong October 28, 2013 / 8:36 am

      Ya you know David – I don’t really have “targets” on specific currency pairs, as I spread out over so many – and just take the “combined total” as being a success / failure.

      I will have added / taken from a given position several times , then added to another / sold another to find myself 1000 pips in profit across the board – but just as likely with a couple positions – a couple pips.

      I just blow out the lot – take vacation etc…..and relaod regardless of “which ones won / lost”.

  3. David October 28, 2013 / 9:04 am

    I like to “trade in and out” as well and scoop up pips along the way.
    Are you familiar with “Bird Hunting in Lion Country”? It employs a strategy of adding small positions over time (similar to what we’re doing). It’s a great ebook that some of your readers may find beneficial.

    • Forex Kong October 28, 2013 / 9:07 am

      Ya I’m always “scooping” along the way as the short term tech can get me back in on the smaller times frames ( usually at an even better price on retracement ) and no I’ve not heard of the ebook but will have a look around!

  4. David October 28, 2013 / 9:18 am

    Title Correction. It’s “Bird Watching in Lion Country” (not “Hunting”) by Dirk Du Toit. Definitely one of my favorite trading books.

    • Forex Kong October 28, 2013 / 9:45 am


      Thanks David.

  5. John October 28, 2013 / 12:15 pm

    Happy Anniversary…from sunny California, eh

    • Forex Kong October 28, 2013 / 12:41 pm

      Hey guys! Glad to hear you are enjoying some sunshine!

      All going great here with expectations for a great week, and great next couple of months!

      Thanks for all the support, and enjoy your holidays!

    • Forex Kong October 28, 2013 / 5:47 pm

      Right on man!

      Thank’s alot -1 year! woohoo!!

      Hey Andy you ever get out to Gilbraltar?

      I spent some time there and up that coast with a group of Brits / business partners some years ago.

      Boy…..did those boys like to party.!

      • Andy Jackson. October 29, 2013 / 1:52 am

        Gibraltar no. Marbella and Barcelona yes. Superb nights. Food and people amazing mate.
        Ps. Was reading the Oz announcement last night as ur tweet came thro. I hit the trade button with some conviction I can tell ya. All blue this morning. I owe you a San Miguel (or 2). Thanks again. Don’t change.

        • Forex Kong October 29, 2013 / 2:07 am

          He he he……ya we’ve made good here in the last few hours.

          I’ll take you up on the San Miguel.

          Thanks Andrew go go go…

  6. JM October 29, 2013 / 5:22 am

    1 year? I’ve discovered your blog recently, and hope that you’ll continue doing it for a loooong time.

    • Forex Kong October 29, 2013 / 5:46 am

      Thanks JM – yes today marks one year. A long year, and a pretty tough year on a couple levels.

      The blog has been great, and I appreciate your support!

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