Tuesday, December 3, 2013

Our trades involving NZD, AUD, USD, EUR and gold | Dollar_Yen pair takes off like a rocket

Our AUDNZD trade is turning out to be a classic of its kind. After a retrace following our entry it is now reaching out, once again, for the first profit level. The Silver Trigger has moved the Stop-Loss level so that it is just above the top of that retrace. Our justification for taking the trade remains as laid out in the discussion when it was initiated, and all criteria remain valid.

In the meantime, gold is now approaching a significant support level. Its general trend continues to be down, but breaking though this support could take a little time. No doubt the Non farm payrolls announcement this coming Friday will have a bearing on this. In the meantime we watch and wait, on your behalf.

The USD versus the Japanese Yen pair continues on its meteoric rise. The problem here is finding an entry point. A parabolic rise like this can be hard to deal with unless one is already in the trade and operating a sensible stop loss policy.

We have initiated a trade in NZDUSD on the basis of the lower lows, accompanied by lower highs in the chart above. Right now this is ever so slightly under water, but no more than might be expected of any new trade. The criteria for choosing it remain valid.

…and we have become extremely curious about this head and shoulders formation in the Single Currency. Trades in this instrument are problematic right now, for a number of reasons. It has proved very resilient to what should have been damaging news in the second half of November while, technically, price remains above the 200 day SMA, which is, itself, still rising.

Fundamentally, the exchange rate of the Euro, at least against the US dollar, will be dependant on inflation in the Euro zone. No doubt Senor Draghi will devote some words to this topic when he has his monthly press conference on Thursday. We will be listening in, as usual.

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