Daily Observations: November 17, 2012
- Long AUD/USD from 1.0318, Stop at 1.0280, Target 1 at 1.0395
- Long EUR/CHF from 1.2018, Stop at 1.1990, Target 1 at 1.2500, Target 2 at 1.2750
- Long USD/JPY from 80.65, Stop at 80.45, Target 1 at 81.75, Target 2 at 83.30
Time Frame: 1-day to 1-week
Recently Closed Positions:
- Closed Long EUR/USD (1/2) from 1.2720 at 1.2790 for +70-pips, Stop moved to BE on remaing position
I wasn't liking price action in AUD/USD and USD/CAD yesterday (suggesting to me a countertrend move), so I closed out the AUD/CAD a bit early for a gain of +110-pips. The EUR/USD long hit its Target 1 at 1.2790 (topped at 1.2800/05), triggering half of the position to be closed, and the remaining half to trade with a Stop at the entry of 1.2790. The pullback during European trading today forced me to exit the trade at my entry.
My daily Stop on my AUD/USD long wasn't triggered, saving this trade by a hair. Nevertheless, with late-day developments out of Washington boosting risk-appetite, it appears that compromise is the gameplan for the time being, making a resolution of sorts (either an extension to mid-2013 or a complete resolution) possible. If news over the weekend is positive, it could provide a boost further at the Sunday open. A move lower to start the week will be worrisome and would suggest more active trade management.
--- Written by Christopher Vecchio, Currency Analyst
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