Usual Mondays
As I wrote special topic oriented posts from Saturday to Monday I was not able to look at price action and trends in financial markets on Monday. I would not say that something really spectacular happened. In terms of Monday it was an average day, where you saw reversal from Friday. If you have been reading my blog for some time you can remember me saying that if Fridays are strong move days, then Mondays are usually reversal days. That is exactly what happened on Friday and followed on Monday. Friday saw some huge moves (news based) and on Monday prices tried to return where they were before the breakout occurred.
Gbp/usd gets stronger
Pound was particularly strong both on Monday and Tuesday. Gbp/usd was able to regain what was lost during breakouts down on Thursday and Friday. It is staying pretty close to Friday’s breakout level of 1.6355. If you are an ardent day trader you could have traded the reversal by simply placing a buy stop order above Asian session high. Market would have taken you up quite close to London open. Your exit would have been around the above mentioned number of 1.6355. In fact, if you look more carefully you will see that it is a pretty important level and if the pair fails to go higher and goes lower, beyond the level, I will go short.
Data from Britain may change the picture tomorrow
Do not forget that we have some pretty important data coming from Great Britain tomorrow at 8:30 GMT (Jobless Claims Change), which can send gbp/usd and other pound pairs down, or push pound to continue its’ upward rally. I hope the pair does not break the above mentioned level before news comes out. If it does I will enter only half a position (sell position) for this is a little riskier than waiting for news to push the security down. At least my experience teaches me that. Don’t trust me too much.
Eur/cad did what it was supposed to do
As you may see eur/cad reversal on Monday was not that dramatic as gbp/usd did. After a small correction the pair again took a nose dive and went lower than Friday low 1.3990. I think it can easily go to 1.3900, where it should see more serious support. I am not intending to do anything with the pair tomorrow, for I already have one small position in it. I have closed a bigger one today. Nice trade!
Commodities are going nowhere!
In terms commodities, I do not see anything interesting happening. At the moment they are not able to break through higher and might be good only for day trading at the moment. Of course, if you do not expect them to go any lower, these levels might be very good for buying them for a longer period of time. Don’t forget not to keep your stops too close to the price. Silver and oil are very much manipulated commodities and can make very drastic daily moves down and then retrace back to where they came from. So, be patient and do not overtrade. See you 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.