Friday, October 10, 2008

FX - Reasons For Sitting and Holding

Here are the reasons I'm holding my positions:

Technically:
Monthly and weekly charts are all showing BB that's either just beginning to widen or is still widening, MACD and Stoch all supporting a bearish trend.

AUD and NZD


JPY Crosses


Fundamentally:
  • Market's jittery, best to play risk aversion ie. LONG JPY.
  • Shorting AUD and NZD (NOT longing USD, but really just shorting AUD. And since I'm shorting AUD, might as well short NZD - since NZ's economy depends so much on what happens in Australia. I could short AUD/JPY and NZD/JPY of course, but that will mean too much exposure to JPY. If even rising gold can't help these 2 countries, I'm going to sit on my short entry for now.
P&L for now

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