Comments:
This week we start off with the Presidents Day holiday here in the States. This will as usual cause a significant drop in liquidity which in turn causes a spike in volatility. Be careful trading the next 24 hours as normal support resistance levels have less chance of holding due to this lack of liquidity. We also have another round of intensive data. We have CPI coming out here in the US as well as the FOMC minutes. We are expecting the week to be volatile due to all the data and holiday. Theme for the week is a slightly weaker Dollar but we still expect it to hold the old lows as support.
Eur:
Last week we advised readers to buy the Eur on dips below 1.45, if you took that trade you should have at least 125 pips profit on the trade. If you have not already done so, move yours stops up to at least breakeven and we would even suggest moving a stop in on half the position below 1.4589. Bottom line this week is to buy dips and target a move back up to 1.48 by the end of the week.
GBP:
The cable is still holding support above 1.9350 and we continue to be buyers of dips in the is pair as well. Stops are below the Sot. Gen. lows, and we are still targeting a move above 1.98.
CHF:
Last week we told readers to sell 1.11 and buy 1.09 with a 21-55 point stop. If you took that trade you should have made a full 200 pips at least once by now and you should also be long from 1.09 at this time. If you are long from 1.09 you should move your stops up top 1.0989 and lock in 89 pips of profit. Put a target in at 1.11 and then trail the stop up by 34-55 pips. This week we see more choppy action with a slight downside bias.
JPY:
We did not see any major dips in this pair last week so we are flat this pair at this time. We are still looking to buy any major dips near 107 targeting a move to 110 by months end.
AUS:
The Ausi has been stronger than expected and did break out over .9100. We were stopped out of the last round of shorts we had on and are now flat. We are looking to buy pullbacks here as well though at these levels we are keeping position size at about 50% of the norm.
Cad:
If you followed last weeks recommendation you should now be short this pair from somewhere between 1.050 and 1.100 with stops working above 1.0134. We are looking for this pair to fall back below parity and retest at least .9925. Target a move to .9925 this week and then reverse and go long again below that point with stops below .9855.
