And now………..Iiiiiiiiiiiiiiiiiiiit’s Time!
Clear the deck traders. Do the unthinkable! I’m taking a shot here this morning.
Yes as much as it pains me to do so ( he he….not really ) there are certain dynamics of the currency market that simply cannot be overlooked / overshadowed by one’s own “feelings” or “preferences”.
We’ve been wondering for some time now “if indeed” the U.S Dollar would take its usual “safe haven flows” ( although these days I wouldn’t really call it that but… ) when risk aversion takes hold, and sure enough it looks like we’re there.
I am initiating several trades long both USD as well long JPY, as money comes out of equities in both the U.S as well Japan ( Nikkei indeed rejected at the double top as suggested ), and in turn is repatriated to “cash” in each of these given currencies.
Makes pretty good sense doesn’t it?
I’ve listed the trades I am entering ( at various levels ) based on the fundamental shift from “risk on” ( where safe havens are sold ) to “risk off” ( where safe haven currencies are repatriated / bought ).
Short EUR/USD as well GBP/USD
Short AUD/USD as well NZD/USD.
Short EUR/JPY as well GBP/JPY, AUD/JPY and NZD/JPY.
I sincerely hope this will be enough to keep you busy for the next couple days ( and perhaps even weeks ). With so many trades taking shape, there will be alot of management / jumping around to do, so we’ll do our best to stay on top of things day to day.