Daily Observations: February 04, 2013
- Long EURCHF from 1.2018 (1/2), Stop at 1.2218 (locked-in +200-pips), Target 2 at 1.2750
- Short GBPUSD from 1.5775, Stop at 1.5830, Target 1 at 1.5675, Target 2 at 1.5580
- Long USDJPY from (1/2) 90.35, Stop at 91.10 (lock-in +75-pips), Target 2 at 93.30, Target 3 at 95.00
Time Frame: 1-day to 1-week
Recently Closed Positions:
- Closed Long EURUSD from 1.3560 at 1.3635 for +75-pips.
- Closed Long USDJPY (1/2) from 90.35 at 91.10 for +75-pips.
My bias hasn't changed:
"I remain a long-term bear on both the British Pound and the Japanese Yen, as both currencies' central banks are moving towards more dovish policies, albeit of vary degrees. With the US Dollar not really playing the role of safe haven anymore - no doubt thanks to rising US Treasury yields - there are clear advantages and disadvantages to certain pairings. The Sterling and the Yen are the weakest currencies this year; the Euro and the New Zealand Dollar are among the strongest. Therefore, I prefer (when appropriate):
- Risk off: Short GBPUSD, Short GBPJPY, Short USDJPY
With the S&P 500 nearing critical topside resistance at 1505/1512, I expect there to be significant selling interest in the coming weeks (the Bearish Rising Wedge pattern off of the 2009 lows is only negated if a break to the upside is accompanied by surging volumes; this has not been the case)."
I also host a weekly Live Trading Q&A in DailyFX Plus, on Tuesdays at 07:15 EST / 12:15 GMT, in which I delve deeper into my positions and thought processes behind my analyses.
--- Written by Christopher Vecchio, Currency Analyst
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