Today saw some nice moves in forex market. Gbp/jpy pair, as I predicted yesterday remained on bullish tone today. It was in a pretty narrow range during Asian and early European session and when news came out it made a run from 132.20 to 132.95 level. Of course, there were some attempts to go up one and a half hour before the announcement, but failed and came to the lower part of the range at 131.85. But news gave it more stimuli and enabled to reach the above mentioned level of 132.95 where you could exit the market. I usually like to exit market 10 pips before even number (just in case big dogs decide to close their orders earlier). At the moment the technical structure of gbp/jpy reminds me of inverted head and shoulders. So, bullish momentum remains in the pair. Let’s wait and see what tomorrow brings.
Another good opportunity was in Euro pairs today. We had ECB's Trichet, Tumpel-Gugerell speaking on European Economy at 13:00 GMT. Euro rose in most pairs and quite much in some. Most probably the biggest rise was against commodity currencies: Canadian, Australian and New Zealand dollars. I enjoy analyzing and trading eur/cad pair, because it forms big swings (as well as gbp/jpy). If you looked at 5 minute chart of the pair you would see that it formed a double top and a double bottom between 8:40 and 12:40 GMT. So, you could trade the announcement in a very traditional way by buying a breakout of resistance or selling the breakout of support. In this case you’d have bought a breakout. You could still be in a trade, but I think it would be better to get out as the resistance is quite near and the pair can turn around any time.
Silver is not going anywhere, but messing around in its’ present range. This is not bad as after messing for some time you might expect a bigger breakout. Tomorrow’s data from Canada (Bank Canada Consumer Price Index Core) could trigger a move one way or another not only in Canadian dollar pairs but in all commodity currencies as well as commodities themselves: oil, gold, silver. I firmly hold to my bullish position towards commodities. They will go up. Too much money printing and careless spending and borrowing without making plans how to pay off those debts. Let’s see what is in store for us tomorrow.
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Disclaimer
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.