FX Alert

While equities continue to frustrate overzealous grizzlies who bet on a news induced sell-off Monday morning I got two juicy FX alerts just now:
[amprotect=nonmember] Charts and commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Cable reaches its first buy net-line and dropped lower for now. I’d like to see a retest of he 1.64 mark and then go short with risk managed by a stop only a few pips away. If we see a close above 1.64 then it would be pretty bullish as cable is fighting both upper BB lines on the hourly right now. The 25-hour BB is already pointing up and this would change the current dynamics, so be prepared to take a long trade if we see a close above 1.64 which then would be confirmed by a close above 1.648.

EUR/JPY has a similar setup right now. We just breached the 110.77 NLBL and the 25-day SMA is only a few pips away at 111.24. A breach of that most likely gets us to 122.29, the next NLBL. If the next daily candle closes below 110.77 then we most likely see a reversal here, so manage your trades accordingly. The problem with the downside here is that I don’t see much downside potential – thus I am more interested in taking a long trade.

The hourly BBs are similarly structured as on cable right now. We are now sitting right at both upper BB lines and a breach higher may lead to some short covering. Although both setups look similar the dynamic IMNSHO are different. Cable leaves more room for ambiguity while the EUR/JPY looks more exhausted on the short side. That doesn’t mean a short trade may not bank you coin, I just have a style of trading that in part considers downside potential. This can sometimes be to my disadvantage as big moves down often happen in extremely oversold conditions. However, those are the exceptions, not the norm. I simply prefer the slow continuous grinding approach to trading – just like I enjoy my lap dances.

Cheers,

Mole