I hope everyone realises that I am not in the business of giving trading advice or trading tips and that I am generally just chatting about what I’m doing in the market, as are all our readers. The NFA is changing the rules when it comes to what one’s allowed to write on sponsored websites, but as I’m not giving advice then I’ve got nothing to worry about, right?
Like many others, I have been short the AUD/USD for some considerable time now and I have started booking profits as we near my initial target of .8570. I expect to see some broad consolidation between .8550/.8800 for the next few days. We also have to remember that it’s NFP tonight and I don’t like having too many positions into that lottery.
I was lucky on my timing with NZD/JPY yesterday and I’m not going to look that particular gift horse in the mouth. It was a big move from yesterday morning yielding a very nice and extremely fortunate return.
The one fly in the ointment is my long EUR/USD position from the mid 1.39’s. Luckily it is a small position and I will try and trade my way out of that.
The really big levels to watch today in my opinion are 139.50 in GBP/JPY (massive technical support) and $1050 in Gold, where India and China have been rumoured for months to be sitting patiently. If both these levels go then I think we see a further big clean out of the highly-leveraged risk trades
