Tuesday, August 6, 2013

Dollars & Cents

Dollars & Cents

U.S. equities sold off today along with the dollar as money left the U.S. and went to the eurozone on better than expected factory orders. The move pushed equities back to support as well as the dollar. We will watch for this support area to hold as it is likely a knee jerk reaction.

The EUR/USD rallied up high enough to stop us out of our trade at breakeven but price did not close through 1.33 which has been acting like strong resistance. This may be a good place to take another short but the price action over the past two weeks has been volatile. We will wait for a new clearer entry signal. (see EUR/USD below)

The CAD/JPY dropped suddenly on the sell-off of the markets and higher volatility. The drop triggered our buy limit and we are in the trade. We will watch for another buy limit at the trend line and look for a higher low for an opportunity to tighten the stop. (see CAD/JPY below)

The USD/CHF edged lower today, not enough to break near term support but enough to have us looking for a bullish entry. We are setting a buy limit at 0.9185 with a stop loss of 0.9135 and two contracts. (see USD/CHF below)