Daily Observations: February 26, 2013
- Long EURCHF from 1.2018 (1/2), Stop at 1.2218 (locked-in +200-pips), Target 2 at 1.2750
Time Frame: 1-day to 1-week
Recently Closed Positions:
- Closed Long USDJPY (1/4) from 90.35 at 91.85 for +150-pips.
Last week I said: "Heading flat into the weekend outside of the Long EURCHF and Long USDJPY positions, given Italian elections - not worth keeping any irons in the fire at this point in time. New positions in EURUSD, GBPUSD, and AUDUSD will be taken next week - looking to sell rallies across the board as the US budget sequester comes into the picture."
Now, with market sentiment broken thanks to, well, democracy in Italy, I am a US Dollar bull, and I am looking to get short AUDUSD, EURUSD, and GBPUSD on rallies.
Worth noting: breakout strategies are favored to range trading strategies. Moving averages have started to widen out as volatility increases, and with my momentum breakout systems aligned for further selling, I will be quite aggressive henceforth.
As always: waiting for the 8-EMA to cross below the 21-EMA on the hourly chart in AUDUSD, EURUSD, and GBPUSD again, as all three of these pairs (as well as the corresponding AUDJPY, EURJPY, and GBPJPY pairs) now have bearish 8-/21-EMA crossovers on the 4H and daily charts.
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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