We all know what happens before a raging storm; peace and quite until all hell breaks loose. Although the “storm” is probably nothing too major, anything’s possible in the world of trading. The market decided to relax and unwind before the action packed week beings. We’ll be hearing from FOMC, BOJ, BOC, and RBNZ with lots of GDP announcement.
I didn’t trade much due to a very thin market. However, I decided to open up a small position on short GBP/USD and short AUD/JPY. The sterling still seems unnecessarily strong while dollar is quietly waiting for the FOMC. I don’t think anyone is anticipating a rate hike this week, however, the tone of Feds will be crucial for dollar’s faith.
Here’s a chart of my AUD/JPY short. It’s on the top channel in a higher time frame while also hitting horiztonal 86.350’s resistance. It’s not a bad R/R to try a short.