🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

Trade Desk Thoughts: Where To This Week

Published 12/31/2000, 07:00 PM
Updated 10/10/2009, 12:09 PM
GBP/USD
-
USD/JPY
-
USD/EUR
-

TheLFB Newswww.TheLFB-Forex.com The Forex Trader Portal

Trade Desk Thoughts: 

Where To This Week

In recent trade the global forex market moved up, down, and ultimately sideways against the Usd, following the expectancy and concern over three interest rate decisions from major central banks. Add to that earning season getting underway in the equity market, supply and demand ratios questioned in the crude oil market as global growth forecasts once again came under the macroeconomic microscope, gold bugs doing the jive over inflation hedge possibilities, and traders can get to see why the currency markets are divided.

The European pairs finished the week where they had started, as did the yen (USD/JPY), with the two commodity based pairs, cad and aussie finding bids quite easily. Cable (GBP/USD) looks completely oversold, and may get a bout of bids ahead of Tuesday’s Inflation Letter from the Bank of England, as well as CPI reads looking to hit at 1.3%, down from the previous 1.6%.

On Tuesday the market also gets to see the Euro-zone ZEW reads on the economic outlook, with reports that have a history of moving prices. A straddle on the euro (USD/EUR) may be in order on Tuesday. The long side would be favored if global equity markets can hold support on S&P Futures trade around 1050. However the pair is at a huge swing point area right now, and will need a lot of things to align to break 1.4850 and easily hold, as was seen in last week’s trade.

The 4 hour trend and momentum charts are very mixed right now, across all global markets, with the regional strength and weakness story nor allowing fair value on risk to be easily found.

The trade team will be issuing a straddle play on both cable, and on the yen as soon as the market open is seen on Monday. There are Bank Holiday’s in Japan, Canada, and the U.S. on Monday, and as such liquidity may be thin, but that does allow for break to easily happen. Whether they hold is another matter, and there is nothing to intimate that this coming week will be able to break and hold any easier than last week.

Get in, get some banked at 30-40 pips, and get the Stop moved up. That will be the mantra to follow on Monday. There is something in the air, and with the Usd at massive dollar index support it may be that we easily see more divergence between the major pairs, and the major commodity markets. A move that goes long gold while oil speculators sell, or an equity break that does not drag the Usd in the opposite direction may be the norm for a while.

There is a new post-credit crisis rule book getting written, and it has smudge on it from the constant challenge of laying new foundations to work from in regard to the acceptance of risk, exposure to liquidity, and availability of margin and leverage to hold long-term positions ahead of the Mutual Fund year-end on October 31st.

The easiest way to read the market will be with 4 hour chart momentum and trend reads that react to Asian (20:00 EDT), European (02:00 EDT), and Chicago (07:00 EDT) futures market order flows. TheLFB Market Overview page has that covered, as well as providing new Price Action swing points on the major pairs, as well as the global commodity markets.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.