I used to call this segment 'Right on the money', but after I figured in trading you can never really be right on the money unless you have a crystal ball, so I dropped that after a few posts. I used to try to 'predict' the best pairs to trade and help other people make some money in the meantime and I actually did! But I'm going way of course now so let's get to the point.
Wall Street closed today because of MLK day, but I haven't sit still doing my usual research and found a few interesting things. Interesting enough to leave a message here. I'm going to use the classic charts I've been using because I think they'll give more instant overview of what is going on.
I have a few trade setups lined up for tomorrow or when they hit target prices.
First setup is the EUR/USD.
Stocks in Europe were up by 0.72%, which means it is likely that the DOW will finish stronger tomorrow, a classic recession pattern is always that the EUR will gain strenght when this happens because investors are willing to take on more risk abroad. I'm going long this pair if I can find a good entry point, most likely around 1.4395 or if I can get it cheaper since this is going to be a swing trade having targets set @ 1.4450.
Here's an interesting one. I'm not quite familiar with this pair but I know a good entry point when I see one. First of all my SSI (Speculative Sentiment Index) is through the roof. More then 78% of traders are long this pair and I can see why. The USD trading at it's low support level in a long time against the CAD. I'm joining the club and go with a buy position @ 1.0250 if I can get it, along with the herd this time, still cautious having my SL set @ 1.0180.
Then there a real interesting one the EUR/JPY. I often don't do cross currency trading because of volatility issues equals higher risk, but you can make a lot of money doing it. Let's take a look.
Now this trade is based on a technical swing trade if the pair drops below 1.3015, if it rises higher especially above 1.31 the trade would become invalid. This is a buy. with 1.3120 as a target.
So far all my trade prospects have been BUY BUY BUY! (EUR/USD buy, USD/CAD buy and EUR/JPY buy)