I am the first to admit that I do not have much of a ‘touch’ at the moment. When I’m trading well I tend to pick ranges and turns pretty cleanly but at the moment, nothing seems too clear. When these periods occur, I tend to look to others for inspiration.
One of the major international banks with a very strong strategic team, have been making some good calls recently. They have been trying to pick a bottom in the EUR/USD and they believe that this pair is about to turn higher and head back into the 1.40’s. I know there has been a lot of scaremongering about the future of the EUR (I wonder was Soros short when he made his statements last week?), but I do not buy into this. I’d rather hold EUR than USD, assuming that the exchange rate is attractive of course.
I have a rather subjective view of the AUD but I think that anything around .6000 against the USD is a steal and that we will see the AUD/USD testing parity again before too long. The AUD is well backed by vast resources of commodities and Australia is sitting in the region with the best growth possibilities, Asia. This view is held by at least one major bank who have been accumulating a long AUD/USD position for the last three weeks.
But long term views are of no use to the day trader. I will temper my views on the day by again saying that my touch has been lacking recently.
Buy AUD/USD at .6435. Buy EUR/USD at 1.2910. Sell USD/JPY at 90.00 with a tight stop. Good luck today.
