London session review and outlook May 8 - 2012
Review of markets covered in today's edition of Bulls vs. Bears: EUR/USD, GBP/USD, AUD/USD, FTSE100, S&P500, Gold, Brent Crude and WTI.
Regards
Alejandro Zambrano
Currency Strategist | DailyFX Forum (London) azambrano@fxcm.com
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I am now short USD/CAD - planning to keep this one overnight.
Surprisingly strong CAD housing starts and building permits... but not sure about CAD job numbers Friday because the CAD conservative government, fresh from its renewed majority, began terminating large numbers of civil servants after the March budget, and paying senior bureaucrats bonuses based on how many government employees they eliminate.
Surprisingly strong CAD housing starts and building permits... but not sure about CAD job numbers Friday because the CAD conservative government, fresh from its renewed majority, began terminating large numbers of civil servants after the March budget, and paying senior bureaucrats bonuses based on how many government employees they eliminate.
Thank you for the update - to tell you the truth I don't have a clue about current CAD macro - but I think we might get a weak USD tomorrow when London starts trading. The S&P500 and Oil bounce hints that people are ready for 1-2 day's of dollar weakness and this will help the loonie - so with (1) the USD/CAD trading very close to the daily high (fairly low risk if price resumes its daily down trend, (2) price trying to extend above the daily R2 (profit target for long positions) and (3) all of this happening at the end of the London session it was not that hard to enter a short position.
The short term trend is however not blessing this trade as we have NOT reversed yet thus I need to keep the stop loss above the daily high. I will see tomorrow morning if I will keep this position or not - If we get a proper high then I will be able to lower the stop loss to the new high.
Last edited by Alejandro Zambrano; 05-08-2012 at 05:59 PM.
Thank you for the update - to tell you the truth I don't have a clue about current CAD macro - but I think we might get a weak USD tomorrow when London starts trading. The S&P500 and Oil bounce hints that people are ready for 1-2 day's of dollar weakness and this will help the loonie - so with (1) the USD/CAD trading very close to the daily high (fairly low risk if price resumes its daily down trend, (2) price trying to extend above the daily R2 (profit target for long positions) and (3) all of this happening at the end of the London session it was not that hard to enter a short position.
The short term trend is however not blessing this trade as we have NOT reversed yet thus I need to keep the stop loss above the daily high. I will see tomorrow morning if I will keep this position or not - If we get a proper high then I will be able to lower the stop loss to the new high.
I think macro is the main driver of markets currently but CAD macro is boring… oil is important and Kuwait says $100 oil (brent) would be cool. On usdcad weakness I aim to lighten our CAD hedges taken from 1.0638 – 0.9988 but just partially because at the end of the day I distrust the Fed not to ease more. In contrast the BOC is hawkish.
No. by the time it was obvious it wasn't coming up to 165 it had dropped too far, no point stepping off the pier if the boats already left.
should have jumped back in on bounce but didn't reach 50% ret. probably too cautious.
prodably 2 short term for scaling in, or maybe i'm too lazy. trying to stick to strategy.
looks like its going to hit s2 on this drop, if not ill enter on next bounce. do you recon its got legs for s3.
oh, hang on, it looks like its bouncing, ill enter short 120, target just above s2, stop 145. div. on 5 min rsi but ill risk it
Hope you've still got that trade open mate. Should go to 1.0030 on this wave.
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Originally Posted by jbiggart 
