A Build Up and Let Down Precludes New Trades at Weeks End

Things were getting kind of hairy into the end of the week. The moderation in risk appetite trends would lead to a modest retreat in risk aversion - which I was heavily positioned in. A couple of my trades would succumb to this move (USDCHF and USDJPY); but the fact of the matter was that this was little more than congestion. That being the case, I shouldn't really see many changes to my book unless I'm either highly leveraged or the position was based on shorter-term technicals. As such, after the big threat of event-driven volatlity passed today without a meaningful move; I am left with most of my big positions.

The notable changes to my trades to end the week is my reentry in USDJPY as it has crossed back above 85 (on a small size position that will be built up as the reversal is confirmed) and taking profit on my EURAUD short. The euro-cross had a big downswing today within its channel with my first target coming fast at 1.4265 and my decision to take the rest off another hundred points down.

For existing positions, I'm still short both EURUSD and GBPUSD. The former is still well in the money with a first level entry at 1.3185 to offset the second near 1.27. The pound position is in the red by 50 points though; so I'll keep my stop at 1.5640. My only other existing position is the short AUDCAD. A brief jump would lead me to question the position; but it seems this may have been a fasle break. I'll evaluate where the market is in comparison to 0.9450 next week.

As for potential trades, there are some goods ones for next week. I'm still liking a bullish break of the long-term EURNZD descending trendline; but patience is critical here. Another pair that I have been watching closely but not trading is GBPUSD. A consistent range floor shows up at 1.5850; so I will keep that as reference. And, another interesting one that I usually shun: USDCAD. A loose, medium-term descending trend and long-term congestion could lead to a reversal or big breakout. Either, or - I like it.