Gosh darn it! I saw one crossover this week, but not all the signals lined up, so I didn’t get triggered!
My charts showed that there was a crossover on Monday, but the next candle didn’t hit my 30 pip filter. So, following my HLHB system rules, I didn’t enter. Can you guess what happened next? Price action dropped of course! The pair fell as low as 1.3300, so that trade would have gave me some decent pips had I gotten triggered. I ain’t feeling bad though because rules are rules, and they are meant to be followed.
Besides, the same pip filter has saved me from numerous disastrous trades in the past. You win some, you lose some and sometimes, you just miss some!
It was quite a wacky week for the forex market. The euro, alongside the other anti-dollars, slid when rumors broke out that Greece will not seek any aid from the IMF. The losses turned out to be short-lived though when Greece’s finance minister denied the rumors. The EUR also received some support from ECB President Jean-Claude Van Damme, I mean, Trichet when he said that Greece will not default on their debt obligations.
I’m not a forex master but I think Greece’s debt problems has already been severely priced in the market, which is causing the European currencies to mostly range. You could see this clearly in the movements of both the GBPUSD and EURUSD, as they are just bouncing around previous highs and lows.
What I’m really keeping an eye on is the unyielding strength of Australia and Canada’s economy. Australia’s high interest rates and Canada’s relatively good economic fundamentals has helped their respective currencies rally strongly against the dollar. They just keep going higher, and higher and higher! Heck, the USDCAD just touched parity! Until some disappointing data comes out from either Australia or Canada, long AUDUSD and short USDCAD trades should continue to work.
Anyways, I’m heading off to bed now. It’s been a tough day at work.My boss was such a meanie today, he said I was starting to gain weight… Guys, here’s a very important tip: Never ever comment on a woman’s weight unless it’s a compliment! She’ll immediately think you think she’s fat! Sigh, I guess I better start running again…
You can also follow me at MeetPips.com. Enjoy your weekend guys!