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Gav's trading blog - Perseverance, Consistency, Confidence

FX

$USDCAD,I am not so sure about..

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I have been trading the whole week, and still holding half position of EURGBP long. I just did not find time to write anything here. There are just too many things to think and handle outside my trading life recently. A little bit stress is building up… Anyway, that’s not the point of this post.

AUDUSD and AUDJPY start to confuse me now. I can’t see the clear picture, so I will leave them alone for now. Some of you might argue USDCAD is back to buy zone again. Well, this time, I am not so sure. I am not sure if we should jump in now. It does not convince me so much. Instead, we might see a run to mid 1.02-ish. Well, who knows? Let’s see.

Here is the CHART!!!

Chart of the moment: $AUDJPY 09-Feb-2010

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I am still trading and watching the markets. However, I didn’t find anything interesting to post on the blog, that explains why the lack of post last week. However, you can always follow my tweets.

Anyway, I tweeted yesterday about going Long with AUDUSD and AUDJPY. I am still holding the positions. Here is the chart of AUDJPY.  Do you see something interesting here? As usual, I love to go in to test the support zone. Let’s see.

What do you think?

Is it time now? A look at GOLD ($XAU)

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I exited my AUDUSD long position earlier today with small loss. The entry was too early. However, I am still looking to build long positions of AUD, NZD and CAD (by Short USDCAD). Let’s see how this strategy works out. Basically, my approach is to test the market, if it does not work out, I run, building another position. No scalping though. OK, I am talking too much now.

I had a look at GOLD. This is another reason I am interested in building long positions of commodities currencies. Well, though this is not the only factor. Take a look at Daily and 4-hr, what do you see? Is it going to break or bounce?

Here is the chart (click to view full chart)

Here are some technical figures:

About this tool

$NZDUSD :Catching the falling knife?

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I start to buy some Aussie dollar and looking to buy Kiwi dollar soon. Oh well, you can say I am catching the falling knives. So what? What would be the worst case if I am wrong? Got stopped out, that’s it. What so tough about that? 🙂

Anyway, here is 4-hr chart of NZDUSD. I am looking at few touches of the support zone, and start buying some to test the support. Let’s see.

Brokers’ response to CFTC’s leverage reduction proposal

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Proposal of leverage reduction

I tweeted the news about CFTC is seeking public comment on proposed reduction of leverage to 10-to-1. In other words, 10:1 leverage would be the maximum amount allowed for all Forex traders in the U.S.

Since then, I have received few emails from retail brokers about their comments to this proposal.  So far, Oanda, MB trading, Interbank FX  are opposing the proposal (No surprise though, given the fact that their U.S operations will be affected directly by this proposal). I did not hear from FXCM, however, the customer service officer was advising me to do account transfer to U.K or Australia if I do not wish to be affected by the new proposed regulation.

Here are brokers’ responses:

Interbank FX

We stand behind the belief that you should be given the freedom and right to choose the amount of leverage that is appropriate for your individual desired risk, and that this basic principle of ‘choice’ is in jeopardy by the proposed CFTC regulations.

If you feel strongly about the proposal, we encourage you to help determine the outcome of these proposed regulations. You can help make an impact by sending comments directly to the CFTC at: secretary@cftc.gov.

MB trading FX (Information received via email, not available on MB trading website now)

MB Trading recognizes the importance of regulation that strengthens industry oversight. We agree with policing and regulating the industry, as was Congress’ intent when empowering the CFTC to create additional rules. However, we don’t agree with policies that might clearly disadvantage firms in the United States which in turn disadvantage you, the client. We encourage you to voice your individual opinion directly to the CFTC. The Public Comment Period is open for 60 days from the date of publication, which was January 13, 2010.

Oanda (via Oanda forum)

in this particular case we strongly believe that limiting leverage to 10:1 is highly restrictive and discriminatory against retail clients because it limits their trading choices. The proposed limit is not in the best interest of the trading public and additionally discriminates against forex dealers operating out of the United States, further limiting choice.

Hence, OANDA strongly opposes this new rule, and we believe it works against the open, accessible forex marketplace we have been trying to create. We will work hard to vigorously oppose the proposed leverage limit, and we are working together with other forex firms, such as FXCM and Gain Capital, to oppose this new rule.

I wonder after this proposal, what will be the next trick that CFTC will play? In short, it is messy. To save the trouble, I will leave my account outside U.S. Here is my another tweet about this.