Trade Closed: 2008-03-20 10:19
Ok, it really didn’t forget to stall, but it looks like traders are leaving the commodity plays and buying back US Dollar by the boat loads. Much hasn’t changed fundamentally in the last few days, so I think this is just profit taking on short USD and commodity positions ahead of the long weekend. I still like to short USD in the long term, but for now Dollar bulls have control.
Total: -100 pips
No trade idea tonight as we may see low volatility heading into the Easter weekend.
Trade Idea: 2008-03-19 22:38
Fundamentally, I still like a short play as interest rate differential now favors the Swiss Franc and even after all of the big moves the Fed has made in the past week, it will still take time to contain the financial crisis and bring back liquidity.
If the pair travels just a bit higher, we may see resistance around 1.0050 as it lines up with the 61% Fibonacci retracement level. Stochastics are still in overbought territory, so sellers may be ready to jump in this range.
Good luck and good trading!