This is a longer timeframe analysis. USDCAD has been consolidating for a period of time. And now looks interesting. I am putting my bet on short side. I mean, I am positive of CAD. Other considerations include the weak, messy, troubled USD and the the relationship of CAD and oil price…uhm…. Let’s see how it works out.
Here is the…..CHART!
[photopress:usdcaddaily.gif,full,1]
Some statistics here
By Trader Gav
A lady from Shanghai office was complaining to me. She has been working hard and save but, yet, still unable to buy a small apartment back in Shanghai, China. According to her ‘source of information’, there will be a second round of price hike, inflation after Beijing Olympic game.
I can’t solve the housing affordability problem for her.Her question to me was “which currency should I buy now” (what she meant was, which currency is worth buying now, she sees Chinese Yuan (CNY) is going to depreciate soon for some reasons). I did not have a quick solution for her. I first response was GOLD.
“But Gold is expensive now, how about USD?”
“Dollar is in trouble and weak, I am not into it, and there is no clear positive perspective of the American economy”
“But, it has been depreciating for so long, it should be bottomed now”
“……”
We read or hear this kinda conversation again and again. Inside our mind, we are afraid of high, and we like to bottom fish. How many times have we made our investment/trading decision based on the feel and fear of high?
Did you ‘feel’ Dollar was cheap a year a ago? Did you ‘feel’ GOLD was expensive a year ago?
Think……
AUDUSD, well well well. We have made a new 52-week high last week, with the help of surprised figure of unemployment rate and troubled USD. I did not get into long position last week ( stupid huh? well). It was just because risk reward ratio did not impress me. Whatever…
It looks interesting to me now. I am waiting for low risk entry to establish a some long positions. Next week we have RBA meeting minute. Well, what’s new in the minute?
Here is the….CHART!
[photopress:audusd4hr.gif,full,1]
Here is some statistics.
By Trader Gav
Firstly, I don’t trade this pair. I have some negative biased views for both Dollar as well as Yen. I use this pair for analysis purposes. Alright, enough of nagging. I see weakness in Yen (that’s one of the reasons I am long AUDJPY now).
In the , what I call, a ‘short sighted’ view, USDJPY is trying to run up the 111-ish level. Let’s see how it works out.
Here is the….CHART!
[photopress:usdjpy06jul2008.gif,full,1]
And here are some statistics. ‘Short sighted’ view, we are in Uptrend. 🙂
By Trader Gav
I am not going to write too much. This chart caught my eyes. Pretty nice trend. I am looking at Long side. What do you think?
Let’s see how it works out.
Here is the …..CHART!
[photopress:audjpy03jul2008.gif,full,1]
Here is some statistics
By Trader Gav
What is the worst psychological problem a trader wannabe can have?
When you are trying to find a solution to your life in the business of trading.
How many times you feel unsatisfied in your day job, dislike the unfavoured working environment, having pathetic financial situations, or even poor social life, you then turn your focus into trading? You wanna make your own decision, be your own boss, hope, (yes, you hope), to make fortune from the buy and sell buttons.
Trying to solve your personal life problem in the trading business is another way to disaster. Not only financial but a disaster of your life.
Think….
Gav with coffee
On a side note, if you are interested in learning more about trading, check out my Back to Basics of Trading series.
