Temporary pause

I been away for 2 weeks and will need some time to catch up with FX events. I be back ASAP.

EUR/GBP (Short)

I had not been updating for a while. While I was still trading the FX markets, I was taking more of a hit and run strategy. Yesterday, I decided to take a shot at shorting the EUR/GBP pair. The entire Euro-Zone is now mired in deep economic problems. Though Britain is not doing too well either, it seem to be doing better comparatively. This week, both central banks will make rate announcements and I am predicting that ECB will play catchup with BOE and slash rates by 50 basis points.

I shorted the pair at 0.8965 and my position is now in the green. I will first aim for a 100 pips gain at 0.8865 and if the pair really plunges, I will move my profit stop another 100 pips more downwards to 0.8765. Technically, this certainly looks plausible. I will be very careful on this trade as the denominator currency is pounds and the exchange rate against SGD is much higher than any other base currency. Still, I am pretty hopeful I can profit from this trade. The guys over at DailyFX seem to have have the same opinion. Keeping my fingers crossed.

P.S. I research on DailyFX http://www.dailyfx.com/analyst_picks/index.html

Update 1
The pair fell smoothly as I expected reaching a low of 0.8875. I am placing an OCO for a stop loss at 0.8950 and a slightly more ambitious profit target of 0.8800. Will adjust accordingly again if the position gather more momentum.

Update 2
Yesterday night, the pair rallied to above 0.894 levels and hit my stop loss. Really frustrating to see a position gaining pips and losing them back again. Argh! Still I managed to catch 15 pips off the table and if the opportunity arises, I will short this pair down again.

Yen loses its safe haven status?

The Yen had been plummeting. I attempted to short the Euro/Yen pair with disastrous results resulting in over 155 pips loss. I also made some impulse trades which results in other small losses. There is certainly something going on with the FOREX market that I as a teeny weeny little player has no clue about. However, this article is worth a read.

Why is the Yen sinking?

I think a good thing for me to do now is to stop trading and wait till the signs are clearer.

USD/CHF (Short)

Its been a couple of days since my last post. I been off forex trading for sometime. Yesterday, I am back to short the USD/CHF pair again. This time the price I entered was 1.1751. I strongly believe that the pair will range bound between 1.18 and 1.14. The Swissy used to be a safe haven currency. But the recent economic turmoil has turned it upside down. Still I think that the pair is very unlikely to shoot above 1.20. My stop loss is set at 1.185 and I will try to get as much profit as I can if the pair goes down as I predict. So far, after a day, there isn't much action still.

Update 1
Unfortunately, the pair went the opposite direction today and hit my stop loss. I took a 100 pip hit. Ouch.

USD/CHF (Short)

I managed to get into a short position yesterday on USD/CHF at 1.1731 and it went very close to my target of 1.1500. Earlier, the Switzerland consumer price index came in at a low of 0.1%. Further, the Swiss national bank also hinted at intervention to allow the currency to trade lower and thereby stimulating exports. The pair swiftly went up to 1.17 regions where it experience some resistance. The pair earlier had turned back after meeting this resistance and I figured that this time it will not be any different. The markets were holding their breath as US released their plans for the bank rescue and other broad economy stimulus and the pair give up the gains as I expected. However after the announcement, the broad market seems skeptical of the bank rescue plan and the trend sort of reversed. I decide to cut short my trade and exited at 1.1565 making a profit of 166 pips.

$819 billion Stimulus Package

Yes, its Obama to the rescue and the markets are throwing risk outta the window. We see safe haven currencies like USD and Yen losing their appeal. I made some small trades but nothing worth mentioning. Will watch how the situation develops. In the meantime, do spend some time to admire this beautiful chart I saw over at Kathy Lien's blog

$819 billion Stimulus Package

BOE cuts rate by 50 basis points

This is a case where my bias against the GBP is completely wrong. When BOE cut rates by 50 basis points, the Cable rallied instead of dropping. Its a good thing that I did not suffer any losses on this trade.