Reversal in the crosses. Is it Possible??

This question would not make sense for experts in the fields of the crosses and the carry trades. The reason why the crosses are so very well supported is due to the fact that the interest have so much difference between the countries involved in the crosses and JPY. The Japanese banks simply refuse to raise their interest rates and they seem very happy with the way the carry trades are going on.

As long as there is such a huge difference in the interest rates, the crosses would continue to gain. Of course, there would be the periodic retracements and corrections, some deep and some not so deep, but every retracement and every correction provides an opportunity to buy and add to the longs rather than anything else. So as long as you have enough money in your account, it is always good to buy th dips in the crosses. Of course, where you buy and which price to buy it at does matter a lot. Watch out for the fibos, S and R and buy the dips.

How long can you keep buying the crosses? Well, till the JPY banks raise their interest rates or the other banks cut their interest rates, this will keep going on. The various speeches and various statements might cause retracements and corrections as the markets might fear that the speeches and statements might lead to concrete action. If such a correction occurs, unless these are supported by actual action in raising rates by the Japanese banks, the crosses would always bounce back. Till then, you can enjoy placing longs at the correct prices.

Happy Trading!!