Daily Observations: May 29, 2013
- Short GBPUSD (1/2) from 1.5110 at 1.5015 for +95-pips.
- Short GBPUSD (1/2) from 1.5110 at 1.5110 for 0-pips.
Typical Time Frame: 1-day to 1-week
The short GBPUSD trade I was looking at on Monday only worked out half as well as I planned, hitting my first target at 1.5015 overnight and then reversing sharply off the lows, to knock me out on the other half of my trade at breakeven. I suppose the title of the trade idea was appropriate - "Short-term Selling Opportunity in GBPUSD to Start Last Week of May" - indeed the selling opportunity was only applicable through the first full trading day of the week.
For now, I am flat, although my attention is drawn to two pairs. First, the EURUSD is not only working on a major Head & Shoulders topping pattern, but also a more near-term Symmetrical Triangle that has bullish and bearish implications alike. I'm bearish as long as price holds below 1.3030, and ideally will be able to sell rallies into 1.2975/3000.
The other pair is the USDJPY, which is riding the ascending trendline off of the April 2 and May 2 lows, in conjunction with the 21-EMA, now at 101.00/15 (previously, I've said that the April 30 low should be the second reference point, but I've adjusted to take into account more recent price action). A break here eyes a deeper pullback towards 100.00 and even 97.50, while a hold and rally through 102.55/60 would suggest new highs.
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--- Written by Christopher Vecchio, Currency Analyst
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