The dollar bulls has been keeping up a good fight but still far away from a confirmed reversal. It’s too early to long the dollar now but things are definitely at an interesting level. But the big news today was from the UK election which hit the pound pretty hard at the end of NY session. There are several outcomes that can come through from the election which will result in a lot of uncertainty for the future. Longing the pound here is would be a risky move.
I had some profits on scalping the GBP/USD before the whole fiasco but further selling does catch my eye. I’ll be looking at different pound pairs and see if they offer any shorting opportunities. As for the dollar, I’m still unsure about the bounce.
Today was an usually chaotic day with prices snapping like rubber bands. The dollar went on a huge spike up then a spike down from late London crossing over to New York session. The dollar bears are still healthy while the bulls are attempting to keep pressure. The balances between the bulls and the bears. are definitely intense
I was hoping the dollar sell-off would continue but it was a rather quiet day. Threw in some EUR/USD and GBP/USD long trades and fooled around with USD/JPY shorts. All in all, was a boring and quiet day. Will wait for another snap in the market.
The market has been volatile in the anticipation of the employment data tomorrow. Things have been very tricky to trade while I was at fault trying to force trades. Dollar seems to be in limbo with it reacting it differently among the variety pairs. Tomorrow will be interesting for the dollar.
The pullback finally happened after an extensive push by the dollar bears. This can be a momentary breather from the bears before the next leg down or it can be a start to the reversal fade. Will be keeping an eye out for possible big moves.
Markets still haven’t been moving much during NY session. I haven’t had the time to trade London session but since the FOMC statement 2 weeks ago, volatility has been dull. Hopefully things start to pick up and break out soon. I’ll try to trade London session again if things are continuously slow.
I took a 2 week break from blogging and trading after a big loss 2 weeks ago. During my break I was still trading but decided not to post because the markets were so slow and boring. During the FOMC statements and French elections, markets were too boring to constantly trade, in fact, I lost money by forcing trades. I’m back now and ready more than ever. Hopefully the markets can wake up and some good trade formations can form.
Just like I called it yesterday, the dollar took a small breather today. The GBP/USD finally pulled back while other dollar pairs had some rest. I wasn’t too crazy about the pullback because the volatility was still pretty weak. Judging by the speed and momentum of the move, I’m not too sold on a reversal just yet. I took some small GBP/USD and GBP/JPY scalps today, but sold it off pretty early. Still very cautious about the pound fades, although longs can still be an option for tomorrow.
The GBP/USD got boosted almost 400 pips in London and New York session by Prime Minister May calling for a snap election in June. This news was completely shocking to the markets and was ultimately favorable for the Pound. May is known for her ability to negotiate well with the European Union so if she wins, it’ll be very beneficial for UK and their Brexit strategy.
I unfortunately missed most of the EUR/USD and GBP/USD rally but had some fun with AUD/USD longs. In the hopes of a lag trade, I longed the AUD/USD on a strong support and pretty much held it throughout NY session, for the final dollar leg down. The dollar can still continue to move on south, but I do suspect a pullback this week. The risk/reward on shorting dollar just doesn’t not look to good to enter at current prices.
Trump ended the market in a surprise attack late afternoon when he claimed the dollar was too strong. The dollar is down about 0.5% since Trump’s comment and is still falling during Asia session. I don’t think the market will challenge Trump’s comment as a bluff and instead act accordingly, which is to sell the dollar before Trump takes actions to depreciate. In my opinion, the dollar is going to continue to fall and safe havens will continue to rally.
Today was one of the better days as my short dollar positions profited from Trump’s comment. Some may call it luck but there was definitely more than enough signs in the charts that dollar was looking for a leg down. This whole week I was selling dollar and today was one of the days luck was on my side.