Well not much to report today. In line with our expectations and as the fundamentals suggested, the USD continues to show its strength as the market prepares for the FED to begin the process of normalization in less than 10 days. This has helped turn our NZDUSD sell in the right position and has mostly reversed the losses of Friday. I am confident that this will continue and we will realize a handsome profit from these trades.
I expect to hold this position until the RBNZ rate decision on Thursday morning. Based on the economic data I agree with many analysts that the RBNZ will cut the rate by 25 basis points to 2.50% from 2.75%. I also believe that they will announce future cuts which will further drive the pair down and add more profit to our position. Unless it makes financial sense to close it before this event, expect this trade to remain open.
Our longer term position of GBPCHF is back in the green (at the time of writing this), the plan is to leave this and let it approach its target of 1.55 and close when I feel the time is suitable. Note, this does not mean you should open your own high leverage trades on this pair!
Potential trades I might add:
Lastly, I am looking for dips in the USDJPY pair to buy before the pair resumes its climb to test new highs. Those of you who read the forum post know what entry level I have in mind for this and which events I expect to aid us with this entry point.
In Hindsight, I should have probably opened my trade idea to sell AUDUSD (as posted on the forums on Sunday before the market opened). However due to work commitments, I was unable to check on trades at all (I never mix work responsibilities with my hobby) and I did not feel morally right to open a trade if I am unable to monitor it at least periodically. I owe the community more than that I have to be responsible as well as profitable. We open trades to make money, not just for the sake of opening trades. I believe that adhering to our strategy is the major source of success and as a result will never deviate from it. After all, it has been working spectacular so far.
Outlook for the day:
With not much expected in terms of Economic data today, I expect the USD to continue to show strength for the rest of the day. Tomorrow will have more economic data.
Thanks for reading,