Risk off week this week driven by two key factors.
Relatively poor data out of most countries with the exception being the UK GDP number leaked by Davey C (primarily due to the Olympic one offs) and general US data including jobless and GDP figures (although headlines don't tell the whole story).
Second real theme in the FX markets was general risk off driven by the US corporate earning season and some big names such as Apple (AAPL) and Google (GOOG) missing estimates. In other news the original party playboy Bunga Berlisconi was sentenced today to 4 years in prison and banned from politics for 5 years (...really, they are actually going to put him in prison, surely he owns them all, I currently have images of Mr Bridger from the Italian Job films)
Tough week for us this week, let's quickly review last weeks trades. We carried three trades into the week.
- AUD/USD short, closed at T1 for 65 pips profit; slow trade lower
- USD/JPY, long finally stopped out on Friday after just over a week for a healthy 91 pips profit
- GBP/JPY, short stopped out on a reverse, we managed this position to close but as ithit the stop -111 pips
- GBP/CAD, short got very close to T1 then reversed, we highlighted it might be worth taking some profit but the reversal stopped us out for breakeven, 0 pips
- USD/CAD, short push lower and reverse, booked some profit at T1, +20 pips
- EUR/USD, long simply moved against us and stopped out for -62 pips
- EUR/JPY, long hit T1 nicely then reversed, + 40 pips
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Leaves us +43 pips for the week. We actually had a very nice GBPUSD long intraday trade from Tuesday which played out extremely well, which not only covered a few intraday loses but made up for the relatively choppy week on our trades.We carry the following into next week
- AUD/NZD short from Thursday
- AUD/USD short from Thursday (hmmm...again?)
- EUR/CAD long from Wednesday
EUR/USD
Euro pushed lower and bounced midday. We would still like to see a test of the 200 day moving average.
GBP/USD
Pound did little today after its push higher from UK GDP. We are currently in a range with strong support and resistance not far below and above the range. We would only be looking for signals showing strong breaks or bounces off of these levels.
AUD/USD
Like many risk pairs the Aussie pushed lower and then bounced; we are currently sat in just below a resistance level, if this holds we could see a retest of the previous support level. If the resistance breaks we are likely to see at test of recent highs around the 1.650 mark.
USD/JPY
Dollar yen retraced although we now have the 200 day moving average not far below which could provide some support.
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