Trader456's trading ideas - page 7
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ECB President Mr. Trichet said that recent economic data pointed toward "a weakening of real GDP growth in mid-2008" following strong growth during Q1. I have been waiting for a good entry level to buy EURGBP. This has pushed EURGBP lower, creating an opportunity to buy EURGBP at lower price. Both stochastic and comm channel had signaled buy for EURGBP. Bought 20,000 EURGBP at 0.7912Stop level at 0.7890Target level at 0.7950 Chart: https://www.mql5.com/go?link=http://binarytrading.blogspot.com/2008/08/bought-20000-eurgbp.html
Position stopped out.
EURGBP has in range trading, between 0.7830 to 0.8020 for the past 2 weeks. I think this trend will continue as both Europe and UK are weak.
Currently EURGBP is trading at the bottom of the range now, at 0.7853.
Bought 10,000 EURGBP at 0.7844
Stop level at 0.7750
Target level at 0.7930
Some Thoughts on the Forex Market
For the past two weeks, US dollar has surprised us with its great rally. I think one of the major reason for the rally is falling oil price. Another is that other countries seem to be in bad economy condition as well. So when the whole world is in trouble, the investment community always favours US.
I do not think this US dollar rally is sustainable. Some of my readers had asked me when this rally will end. I do not want to make guesses as this can be damaging in my trading. I prefer to react only when the charts tell me so.
If US dollar continue to be strong, I will be interested to buy USDJPY.
If US dollar cools down, I will be interested to short USDCHF or USDCAD or Silver.
Besides the US crosses, I will be interested to short EURJPY on rebound. It had been easy money to borrow JPY to buy EUR for the past 7 years, but I think this trade has gone too far. I am making a BOLD prediction that we will not see EURJPY rising above the peak of 170 for the next 3 months.
Currently I had long position in EURGBP, reason being both Europe and UK economies are weak, I see no reason for EURGBP to breakout of its sideway trading.
Market expects the Fed to raise interest in the next 12 months and the worst for the US banks may be over. These are bullish signs for US dollar.
MACD and Parabolic had signaled buy for USDJPY.
Bought 10,000 USDJPY at 109.90
Stop level at 108.80
Target level at 111.00
Chart: https://www.mql5.com/go?link=http://binarytrading.blogspot.com/2008/08/bullish-on-usdjpy.html
Market expects the Fed to raise interest in the next 12 months and the worst for the US banks may be over. These are bullish signs for US dollar. MACD and Parabolic had signaled buy for USDJPY. Bought 10,000 USDJPY at 109.90Stop level at 108.80Target level at 111.00 Chart: https://www.mql5.com/go?link=http://binarytrading.blogspot.com/2008/08/bullish-on-usdjpy.html
The trend has turned in favour of the US dollar. Falling oil and commodities prices have provided relieve to the US economy. Market expects Japan economy to approach recession has weaken the yen.
Currently USDJPY is trading at 110.00, unrealised gain is US$10.29.
Chart: Forex and Binary Trading: Review on USDJPY position
EURGBP has in range trading, between 0.7830 to 0.8020 for the past 2 weeks. I think this trend will continue as both Europe and UK are weak. Currently EURGBP is trading at the bottom of the range now, at 0.7853. Bought 10,000 EURGBP at 0.7844Stop level at 0.7750Target level at 0.7930
Last week I had bought 10,000 EURGBP at 0.7844, stop level at 0.7750, target level at 0.7940.
Today EURGBP has rebounded as there is data to show that housing slump in UK had deepened. Royal Institution of Chartered Surveyors said the number of real-estate agents and surveyors reporting lower prices exceeded those reporting gains by 83.9% last month as the credit squeeze brought the market to a virtual standstill.
Currently EURGBP is trading at 0.7835, unrealised loss is US$34. EURGBP is moving back up into the range, so my loss should turn into profit pretty soon.
Chart: Forex and Binary Trading: Review on EURGBP position
I can be contactable at metal.commodity@gmail.com.
Shorted EURJPY
EURJPY is a carry trade that has been very profitable for the past 7 years, but I think this carry trade is overdone.
Both MACD and Bollingerband are signaling that EURJPY could go down lower.
Shorted 10,000 EURJPY at 163.98
Stop level at 165.60
Target level at 162.40
Chart: https://www.mql5.com/go?link=http://binarytrading.blogspot.com/2008/08/shorted-eurjpy.html
Shorted EURJPY EURJPY is a carry trade that has been very profitable for the past 7 years, but I think this carry trade is overdone. Both MACD and Bollingerband are signaling that EURJPY could go down lower. Shorted 10,000 EURJPY at 163.98Stop level at 165.60Target level at 162.40 Chart: https://www.mql5.com/go?link=http://binarytrading.blogspot.com/2008/08/shorted-eurjpy.html
Yesterday I had shorted 10,000 EURJPY at 163.98, stop level at 165.60, target level at 162.40.
EURJPY continues to move down sharply.
Japan's gross domestic product shrank an annualized 2.4 percent in the three months ended June 30 after expanding a revised 3.2 percent in the first quarter. This may weaken the yen and cause a rebound in EURJPY.
I decide to take profit first. Bought back at 162.78, profit is US$108.82.
Chart: Forex and Binary Trading: EURJPY profit is up 120 pips
EURGBP has in range trading, between 0.7830 to 0.8020 for the past 2 weeks. I think this trend will continue as both Europe and UK are weak. Currently EURGBP is trading at the bottom of the range now, at 0.7853. Bought 10,000 EURGBP at 0.7844Stop level at 0.7750Target level at 0.7930
Last week Thurday 7 August, I had bought 20,000 EURGBP at 0.7844, stop level at 0.7750, target level at 0.7940.
The Bank of England published its quarterly inflation forecasts on Wednesday against a backdrop of sharply rising price pressures and a slowing economy. Governor Mervyn King said "The current period of above-target inflation, although very marked, will be temporary and inflation will return to the 2 percent target."
GBP comes under assault following the release of BOE inflation report pushing EURGBP up.
I took profit on 0.7930, profit is US$322.
System signals buy for EURUSD
As mentioned in my previous posting, US dollar has rallied for the past one month. US dollar has rushed up too fast and too steep. Fundamentally and technically I think this rally is not sustainable. All you need is one bad US economic data to turn this US dollar direction around.
AUDUSD is already up, gold and silver price is already up, crude oil is already up, but EURUSD is still trading in a tight band of 1.4829 - 1.4967. In my view EURUSD is lagging behind. If USD is weaken, then EURUSD should go up higher.
Both Comm Channel and Stochastic had signaled buy for EURUSD
Bought 10,000 EURUSD at 1.4919
Stop level at 1.4818
Chart:Forex and Binary Trading: System signals buy for EURUSD