Hi All,
There are loads and loads of indicators out there and so all the new traders are overwhelmed with the amount of information at their disposal and also at the number of indicators. They do not know which ones work and which ones do not and which ones to use and which ones not to use.
Let me tell you something. All the usual, well known indicators work well. In fact, that is why they are well known. But at the same time, dont expect the indicators to tell you what the market is going to do. Indicators are like tools like hammer, scissors etc. It is upto you to learn to use it and find out how best to use it. Like any tool, indicators can be used to make a lot of money and also lose a lot of money. It all depends on the person who uses it. Moreover, as i keep saying, indicators are always reactive and not predictive. They always tell you what has happened and not what is going to happen.
For those who are new, the moving averages are the best and the most easy indicator to understand and use. The MA crosses are one of the most frequently used systems as well. Of course, the MA is always lagging and so it is upto the user to find the best and most optimum use for it. Try to understand what it is and how it works and then find how you can use it to improve your trading. Moving average for n periods is just the average of the price for the past n periods. If the current price is above that, then it means that the current price is above the average and vice versa. The lesser the value of n , the more reactive the average is to the price. The greater the value of n, the more smoothed the MA would be. There are many types of MA like simple, exponential, linear weighted etc. and they are the most used indicators for trading systems. Throw in various types of MA with different periods on the charts and watch for patterns between the MA and the price and you will learn a lot.
Likewise, RSI is a very good indicator as well and if properly used, it can tell you the fibs, pivots and S and R to a very precise extent. It would be amazing, but if u get the right combination of inputs to RSI, it would be amazing to note how it perfectly matches the daily fib levels. You dont need to even see the fibs, just get the correct combination of TF and RSI and you can see the fib levels automatically. I have seen it happen and it is really eerie to see the relation between the RSI and the fibs. They just seem to know each other so well.
Try and play around with various indicators with various settings and time frames and find out the one which works best for you. There is no such thing as the best indicator. It is all upto how you use it and how comfotable you are with it.
Happy Trading!!!
Saturday, July 14, 2007
Friday, July 13, 2007
Market Commentary...
Hi All,
As expected the crosses did not do anything special for today. I thought that GBPUSD would break down and get ready for shorts but that did not happen. But the news that Iran had asked to be paid in yen has strengthened the yen and anyway lead to the downfall in the crosses as had been expected.
Practically speaking, the above news should not impact the crosses much as the import of oil will be only a very small part of the business and should not involve a lot of money. But i guess the market was waiting for something to take some profits and they did that once they got this news.
Next week, i do not see much going wrong for the crosses and should be an upweek overall once the crosses manage to get out of the ranges that they are caught in right now. Of course, it would take quite a bit of effort to come out of the ranges but they need a really big push. We need to see what would come along to give them the decisive push. If the push does not come soon, then we may see some downturn in the crosses.
I do not wish to comment on whether it is good to hold the open positions over the weekend or not. I guess there are both positives and negatives to that but i personally dont prefer having open positions over the weekend and i try and close them if they are in profit. So just look at your trading style and decide the best course of action over the weekend.
Happy Trading!!!
As expected the crosses did not do anything special for today. I thought that GBPUSD would break down and get ready for shorts but that did not happen. But the news that Iran had asked to be paid in yen has strengthened the yen and anyway lead to the downfall in the crosses as had been expected.
Practically speaking, the above news should not impact the crosses much as the import of oil will be only a very small part of the business and should not involve a lot of money. But i guess the market was waiting for something to take some profits and they did that once they got this news.
Next week, i do not see much going wrong for the crosses and should be an upweek overall once the crosses manage to get out of the ranges that they are caught in right now. Of course, it would take quite a bit of effort to come out of the ranges but they need a really big push. We need to see what would come along to give them the decisive push. If the push does not come soon, then we may see some downturn in the crosses.
I do not wish to comment on whether it is good to hold the open positions over the weekend or not. I guess there are both positives and negatives to that but i personally dont prefer having open positions over the weekend and i try and close them if they are in profit. So just look at your trading style and decide the best course of action over the weekend.
Happy Trading!!!
Thursday, July 12, 2007
Supports and Resistances for July 13, 2007
Hi all,
Nice ranging day on all the crosses yesterday. It is not only the trending days, the ranging days can also make you a lot of money. The crosses stayed well within the S and R and it was easy and interesting trading that. I have expanded my range of trading to include all the JPY crosses (AUD,NZD,CAD) rather than just the GJ, EJ and the UJ. This provides with a lot more choice and a lot more trades. As for today, nothing major should affect the crosses and i feel that they will continue to range today. GU looks very weak and this will be a drag on GJ which will in turn be a drag on EJ. Thats what i feel, lets see though..
Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 168.75. If that is broken, next support is at 168.45 and the final major support is at 167.95. On the topside, the resistance is at 168.95 and then at 169.40.
GBPJPY - Important support at 248.45. If that is broken, next support is at 247.55 and the final major support is at 247.08. On the topside, the resistance is at 249.03 and then a major resistance at 249.70.
Happy Trading !!!
Nice ranging day on all the crosses yesterday. It is not only the trending days, the ranging days can also make you a lot of money. The crosses stayed well within the S and R and it was easy and interesting trading that. I have expanded my range of trading to include all the JPY crosses (AUD,NZD,CAD) rather than just the GJ, EJ and the UJ. This provides with a lot more choice and a lot more trades. As for today, nothing major should affect the crosses and i feel that they will continue to range today. GU looks very weak and this will be a drag on GJ which will in turn be a drag on EJ. Thats what i feel, lets see though..
Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 168.75. If that is broken, next support is at 168.45 and the final major support is at 167.95. On the topside, the resistance is at 168.95 and then at 169.40.
GBPJPY - Important support at 248.45. If that is broken, next support is at 247.55 and the final major support is at 247.08. On the topside, the resistance is at 249.03 and then a major resistance at 249.70.
Happy Trading !!!
Some more commentary....
Hi All,
So as predicted in this blog, the crosses have resumed their journey in favor of the longs...GJ alone seems to have been caught in a tight range which should hopefully break out in favor of the longs by tomorrow. All the crosses seem jolly well good enough for a ride in the longs.
The reason for this being that none of the statements out of Japan today spoke of any indication of any rate increase. Though they might have subtly hinted at a rate hike, overall, the tone was not as hawkish as people had expected it to be. So the buyers have come back and as can be seen GJ is back where it was and EJ has even overshot its previous highs..
All in all, a good interesting day. As for tomorrow, some news is due out of NZ and US and that should make things slightly interesting but it should not shake up the JPY crosses a great deal.
CADJPY had been threatening to break out for longs right from morning and finally after the CAD news was out, it too broke out in favor of longs..
Happy Trading!!!
So as predicted in this blog, the crosses have resumed their journey in favor of the longs...GJ alone seems to have been caught in a tight range which should hopefully break out in favor of the longs by tomorrow. All the crosses seem jolly well good enough for a ride in the longs.
The reason for this being that none of the statements out of Japan today spoke of any indication of any rate increase. Though they might have subtly hinted at a rate hike, overall, the tone was not as hawkish as people had expected it to be. So the buyers have come back and as can be seen GJ is back where it was and EJ has even overshot its previous highs..
All in all, a good interesting day. As for tomorrow, some news is due out of NZ and US and that should make things slightly interesting but it should not shake up the JPY crosses a great deal.
CADJPY had been threatening to break out for longs right from morning and finally after the CAD news was out, it too broke out in favor of longs..
Happy Trading!!!
Market Commentary...
Hi All,
So all the news is out and finally we have the situation where as expected, the JPY banks did not raise rates and Fukui did not make any untoward statements about the weakness of the JPY. So, frankly speaking, this should be good for the longs in the crosses but so far that action has not arrived in the crosses.
Usually, under such circumstances, GJ will lead the weay up for the crosses but today GU seems very weak. I think it has risen too much and so it has gone into a consolidation mode and then this would be later on followed by a breakout on either side. So the weakness in the GU is reflecting on the GJ and hence it is not able to make an upmove. Some more news is scheduled for release later on today and we will have to se after that.
I still favor longs in the crosses.
Happy Trading!!
So all the news is out and finally we have the situation where as expected, the JPY banks did not raise rates and Fukui did not make any untoward statements about the weakness of the JPY. So, frankly speaking, this should be good for the longs in the crosses but so far that action has not arrived in the crosses.
Usually, under such circumstances, GJ will lead the weay up for the crosses but today GU seems very weak. I think it has risen too much and so it has gone into a consolidation mode and then this would be later on followed by a breakout on either side. So the weakness in the GU is reflecting on the GJ and hence it is not able to make an upmove. Some more news is scheduled for release later on today and we will have to se after that.
I still favor longs in the crosses.
Happy Trading!!
Wednesday, July 11, 2007
Supports and Resistances for July 12, 2007
Hi all,
As specified in my previous post, the crosses have come back with strength and we just need to wait a few more hours for the rate announcement and statements from Japan which will give us the next sense of direction for the longs. I feel that even after announcements and the statements, the situation would be good for the longs and we would see further rise in the crosses. This is based on pure gut feel for the market rather than anything else. We just have to wait and see. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 167.97. If that is broken, next support is at 167.20 and the final major support is at 166.45. On the topside, the resistance is at 168.45 and then at 168.80.
GBPJPY - Important support at 248.45. If that is broken, next support is at 247.55 and the final major support is at 247.08. On the topside, the resistance is at 249.03 and then a major resistance at 249.70.
Happy Trading !!!
As specified in my previous post, the crosses have come back with strength and we just need to wait a few more hours for the rate announcement and statements from Japan which will give us the next sense of direction for the longs. I feel that even after announcements and the statements, the situation would be good for the longs and we would see further rise in the crosses. This is based on pure gut feel for the market rather than anything else. We just have to wait and see. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.88. If that is broken, next support is at 121.40 which is a very strong support and the final major support is at 121.10. On the topside, the resistance is at 122.66 and then at 123.40.
EURJPY - Important support at 167.97. If that is broken, next support is at 167.20 and the final major support is at 166.45. On the topside, the resistance is at 168.45 and then at 168.80.
GBPJPY - Important support at 248.45. If that is broken, next support is at 247.55 and the final major support is at 247.08. On the topside, the resistance is at 249.03 and then a major resistance at 249.70.
Happy Trading !!!
Some thoughts...
Hi All,
Wild day it was, wasnt it. The crosses seemed to have come roaring back but they seemed to have come back a little too quick for my liking. Those who were in the right direction on the crosses (which is long for now) would have reaped huge profits by now. But with tomorrows rate decisions and statements from Japan, those who have not been part of the ride so far would be advised to wait before they get in.
Considering the speed with which the crosses have risen, caution is advised to those who are planning to get in now. Just watch out for the news tomorrow, confirm the direction and then jump in, there is always lots of pips to be made.
Happy Trading!!
Hi All,
Wild day it was, wasnt it. The crosses seemed to have come roaring back but they seemed to have come back a little too quick for my liking. Those who were in the right direction on the crosses (which is long for now) would have reaped huge profits by now. But with tomorrows rate decisions and statements from Japan, those who have not been part of the ride so far would be advised to wait before they get in.
Considering the speed with which the crosses have risen, caution is advised to those who are planning to get in now. Just watch out for the news tomorrow, confirm the direction and then jump in, there is always lots of pips to be made.
Happy Trading!!
Little insight and other details about my system..
Hi All,
Lately, i have been getting a few inquiries about my system, how to join it and all that. First of all, this blog was not started to advertise my system nor was it started to build up curiosity about my system. This blog was started to share whatever little knowledge that i had gained in forex for the past 5 years. At the same time, frankly, i was quite proud of my system and so i gave out about 20% of the calls from my system on this blog so that it would help a few people in their trades. There was no other intention in starting this blog and i had stated as such in one of my earlier articles on this blog. That is why, lately, i have not shared any calls on this blog cos i was getting a feeling that those calls were acting as an advertisement for my system which was never my intention.
But due to the gaining curiosity about my system, i would like to say that my system is based on regression, fibos and moving averages and it is very simple and easy to follow and the signals simply jump out of the charts for me. It is very easy to code an EA based on my system but i do not want to do it cos i love a hands on approach to the market. This is all that i can reveal about my system at this point of time.
As for people interested in buying trading calls etc, let me reveal something which i have not done so far. I already run a signal service with 12 people in it and we are doing fine so far. The reason why i did not reveal this so far was cos, again, i did not want this blog to be considered as an advertisement for my paid services.
Those interested in purchasing my paid calls, account management etc. , pls mail me at kartram.77@gmail.com for further details.
Others can continue to visit this blog as normal for S and R and the occasional trading calls from my system. I solicit your continued patronage to this blog..
Happy Trading!!!
Hi All,
Lately, i have been getting a few inquiries about my system, how to join it and all that. First of all, this blog was not started to advertise my system nor was it started to build up curiosity about my system. This blog was started to share whatever little knowledge that i had gained in forex for the past 5 years. At the same time, frankly, i was quite proud of my system and so i gave out about 20% of the calls from my system on this blog so that it would help a few people in their trades. There was no other intention in starting this blog and i had stated as such in one of my earlier articles on this blog. That is why, lately, i have not shared any calls on this blog cos i was getting a feeling that those calls were acting as an advertisement for my system which was never my intention.
But due to the gaining curiosity about my system, i would like to say that my system is based on regression, fibos and moving averages and it is very simple and easy to follow and the signals simply jump out of the charts for me. It is very easy to code an EA based on my system but i do not want to do it cos i love a hands on approach to the market. This is all that i can reveal about my system at this point of time.
As for people interested in buying trading calls etc, let me reveal something which i have not done so far. I already run a signal service with 12 people in it and we are doing fine so far. The reason why i did not reveal this so far was cos, again, i did not want this blog to be considered as an advertisement for my paid services.
Those interested in purchasing my paid calls, account management etc. , pls mail me at kartram.77@gmail.com for further details.
Others can continue to visit this blog as normal for S and R and the occasional trading calls from my system. I solicit your continued patronage to this blog..
Happy Trading!!!
Tuesday, July 10, 2007
Perfect Week so far for the System...
Hi All,
Last 2 days have turned out to be perfect days for my system. I have abstained from talking about my system entries over the past week or so lest it be considered as some kind of advertisement. But i could not contain this. My system showed long entry for GU at 2.0135, short entry for GJ at 247.36, short for EJ at 167.4 and short fot GBPCHF at 2.4459. Took all of them and sitting on nice profits right now....:-))))...Closed a few, have a few open. All in all, a great week so far...:-)))...
Happy Trading!!!
Hi All,
Last 2 days have turned out to be perfect days for my system. I have abstained from talking about my system entries over the past week or so lest it be considered as some kind of advertisement. But i could not contain this. My system showed long entry for GU at 2.0135, short entry for GJ at 247.36, short for EJ at 167.4 and short fot GBPCHF at 2.4459. Took all of them and sitting on nice profits right now....:-))))...Closed a few, have a few open. All in all, a great week so far...:-)))...
Happy Trading!!!
Supports and Resistances for July 11, 2007
Hi all,
Well, there seems to have been a fundamental shift in the currency market which seems to have hugely weakened the USD. This caused the USD to weaken against all the currencies (including the JPY) and this effect was felt in the UJ which percolated down to the EJ and GJ as well. All good supports were broken for these crosses and now the market is waiting for the next push. Which direction the push would be in will depend on how the London market opens. We just have to wait and see. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.09. If that is broken, next support is at 120.30 which is a very strong support and the final major support is at 119.50. On the topside, the resistance is at 121.88 and then at 122.66.
EURJPY - Important support at 166.80. If that is broken, next support is at 166.40 and the final major support is at 165.80. On the topside, the resistance is at 167.50 and then at 168.00.
GBPJPY - Important support at 245.80. If that is broken, next support is at 245.30 and the final major support is at 244.70. On the topside, the resistance is at 246.88 and then a major resistance at 248.00.
Happy Trading !!!
Hi all,
Well, there seems to have been a fundamental shift in the currency market which seems to have hugely weakened the USD. This caused the USD to weaken against all the currencies (including the JPY) and this effect was felt in the UJ which percolated down to the EJ and GJ as well. All good supports were broken for these crosses and now the market is waiting for the next push. Which direction the push would be in will depend on how the London market opens. We just have to wait and see. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 121.09. If that is broken, next support is at 120.30 which is a very strong support and the final major support is at 119.50. On the topside, the resistance is at 121.88 and then at 122.66.
EURJPY - Important support at 166.80. If that is broken, next support is at 166.40 and the final major support is at 165.80. On the topside, the resistance is at 167.50 and then at 168.00.
GBPJPY - Important support at 245.80. If that is broken, next support is at 245.30 and the final major support is at 244.70. On the topside, the resistance is at 246.88 and then a major resistance at 248.00.
Happy Trading !!!
Market Commentary
Hi All,
Phew!! The crosses have a great practice of making us fools, dont they!! Here everyone is looking for upward movement and there we all have a nice retracement. The retracement so far has been well supported by the fibos of the last major wave and i expect the fibos to hold well through the rest of the day.
The retracements, as repeatedly address in this blog, present good opportunities to add to our longs. Each one would have a different method of finding the supports and resistances. So find the S and R using your own methods and continue buying dips. Unless there is a fundamental reason for change, thes retracements are purely for profit taking and technical purposes and should be treated as opportunities. So continue buying dips and enjoy the ride!!
Happy Trading!!
Hi All,
Phew!! The crosses have a great practice of making us fools, dont they!! Here everyone is looking for upward movement and there we all have a nice retracement. The retracement so far has been well supported by the fibos of the last major wave and i expect the fibos to hold well through the rest of the day.
The retracements, as repeatedly address in this blog, present good opportunities to add to our longs. Each one would have a different method of finding the supports and resistances. So find the S and R using your own methods and continue buying dips. Unless there is a fundamental reason for change, thes retracements are purely for profit taking and technical purposes and should be treated as opportunities. So continue buying dips and enjoy the ride!!
Happy Trading!!
Monday, July 9, 2007
Supports and Resistances for July 10, 2007
Hi all,
The crosses had a nice up down roundabout run yesterday with the bias being to the longside. Today, as of this writing, the crosses have again had a nice rectracement. I feel that this is consolidation of the previous rise in all the yen crosses and we would again see a rise in the crosses today. The Japanese Governor is slated to make a speech tomorrow and so probably till he speaks, the euphoria over the crosses would be tempered. But the bias is towards the longs. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.05. If that is broken, next support is at 122.70 which is a very strong support and the final major support is at 122.30. On the topside, the resistance is at 123.44 and then at 123.75.
EURJPY - Important support at 167.55. If that is broken, next support is at 167.20 and the final major support is at 166.50. On the topside, the resistance is at 168.20 and then at 168.85.
GBPJPY - Important support at 248.15. If that is broken, next support is at 247.68 and the final major support is at 247.30. On the topside, the resistance is at 248.55 and then a major resistance at 248.85.
Happy Trading !!!
Hi all,
The crosses had a nice up down roundabout run yesterday with the bias being to the longside. Today, as of this writing, the crosses have again had a nice rectracement. I feel that this is consolidation of the previous rise in all the yen crosses and we would again see a rise in the crosses today. The Japanese Governor is slated to make a speech tomorrow and so probably till he speaks, the euphoria over the crosses would be tempered. But the bias is towards the longs. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.05. If that is broken, next support is at 122.70 which is a very strong support and the final major support is at 122.30. On the topside, the resistance is at 123.44 and then at 123.75.
EURJPY - Important support at 167.55. If that is broken, next support is at 167.20 and the final major support is at 166.50. On the topside, the resistance is at 168.20 and then at 168.85.
GBPJPY - Important support at 248.15. If that is broken, next support is at 247.68 and the final major support is at 247.30. On the topside, the resistance is at 248.55 and then a major resistance at 248.85.
Happy Trading !!!
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!!
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!!
Sunday, July 8, 2007
Supports and Resistances for July 9, 2007
Hi all,
As updated yesterday, the crosses are trading up today so far. The week has started out strong for them and i feel that they would continue to be strong this week and they would reach new highs. Of course, some of the news releases over the week could act as speed breakers but they would cause only minor retracements which should be handled well by the crosses. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.45. If that is broken, next support is at 123.05 which is a very strong support and the final major support is at 122.70. On the topside, the resistance is at 123.65 and then at 124.00.
EURJPY - Important support at 168.05. If that is broken, next support is at 167.60 and the final major support is at 167.20. On the topside, the resistance is at 168.40 and then at 168.85.
GBPJPY - Important support at 248.15. If that is broken, next support is at 247.68 and the final major support is at 247.30. On the topside, the resistance is at 248.45 and then a major resistance at 248.85.
Happy Trading !!!
Hi all,
As updated yesterday, the crosses are trading up today so far. The week has started out strong for them and i feel that they would continue to be strong this week and they would reach new highs. Of course, some of the news releases over the week could act as speed breakers but they would cause only minor retracements which should be handled well by the crosses. Below are the supports and resistances for the JPY crosses for today:-
USDJPY - Important support at 123.45. If that is broken, next support is at 123.05 which is a very strong support and the final major support is at 122.70. On the topside, the resistance is at 123.65 and then at 124.00.
EURJPY - Important support at 168.05. If that is broken, next support is at 167.60 and the final major support is at 167.20. On the topside, the resistance is at 168.40 and then at 168.85.
GBPJPY - Important support at 248.15. If that is broken, next support is at 247.68 and the final major support is at 247.30. On the topside, the resistance is at 248.45 and then a major resistance at 248.85.
Happy Trading !!!
Hi All,
So the new week is about to start off, a week after some of the major news has released. We saw some of the currency pairs make record highs and so next week would be very important to see whether these pairs would be able to sustain their gains. The chief among these currencies is the GBP and the pairs associated with it.The GBP rose to record highs against the dollar once the rate increase news released based on the initial euphoria. But it was clear that the rate hike was already priced in and so GBP began to loiter against all the other currencies without knowing what it needs to do.
GBP retraced a bit against the USD and GJ struggled to rise while at the same time EJ had a hugerise. GBPCHF also did not have a great day whereas considering the news, this pair should have been having a great time.All in all, GBP looks quite weak in this opening of the week. We need to see how the week opens and watch for sometime to see where it goes and see its likely direction.As for the crosses, i feel that they would continue to rise this week as well with the GJ being the weakest of the 3 crosses. As you all might understand, all the rate hikes, good fundamental news etc act in the form of a cycle.
Rate hikes would look good initially but as time wears on, the rate hikes would lead to a weakening of the economy and this would get reflected in the fundamental news and hence the increase in the price of the currency pair would be tempered down by the bad news in due course of time. This is the biggest factor that is holding back the GBP from rising very well against the other currencies. The effect of the rate hike on GBP would slowly be felt from August onwards and the economic news getting released from them would show the slowdown. This is what happened with the USD which had a bad time, then followed with a good time where it rose against the other currencies and now again it seems to be struggling against many of the currencies.But the crosses have a very basic fundamental thing called carry trades favoring them and thats why they show so much rise and so much action compared to the other currency pairs.
Happy Trading!!!
So the new week is about to start off, a week after some of the major news has released. We saw some of the currency pairs make record highs and so next week would be very important to see whether these pairs would be able to sustain their gains. The chief among these currencies is the GBP and the pairs associated with it.The GBP rose to record highs against the dollar once the rate increase news released based on the initial euphoria. But it was clear that the rate hike was already priced in and so GBP began to loiter against all the other currencies without knowing what it needs to do.
GBP retraced a bit against the USD and GJ struggled to rise while at the same time EJ had a hugerise. GBPCHF also did not have a great day whereas considering the news, this pair should have been having a great time.All in all, GBP looks quite weak in this opening of the week. We need to see how the week opens and watch for sometime to see where it goes and see its likely direction.As for the crosses, i feel that they would continue to rise this week as well with the GJ being the weakest of the 3 crosses. As you all might understand, all the rate hikes, good fundamental news etc act in the form of a cycle.
Rate hikes would look good initially but as time wears on, the rate hikes would lead to a weakening of the economy and this would get reflected in the fundamental news and hence the increase in the price of the currency pair would be tempered down by the bad news in due course of time. This is the biggest factor that is holding back the GBP from rising very well against the other currencies. The effect of the rate hike on GBP would slowly be felt from August onwards and the economic news getting released from them would show the slowdown. This is what happened with the USD which had a bad time, then followed with a good time where it rose against the other currencies and now again it seems to be struggling against many of the currencies.But the crosses have a very basic fundamental thing called carry trades favoring them and thats why they show so much rise and so much action compared to the other currency pairs.
Happy Trading!!!
Subscribe to:
Posts (Atom)
