BKSWING – 4 New Trades, Cancel EUR/JPY Order

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There has been a significant amount of volatility in the FX market since the beginning of the week but the next 24 hours will be extremely important for currencies and the viability of current reversals. We have the RBNZ meeting later this afternoon, Australian employment on the calendar along with the next ECB TLTRO operation and US retail sales. IF the RBNZ lowers its inflation target as we expect, there could be significant selling of NZD against the dollar and JPY. At the same time, although the odds favor a bounce in AU employment, the bigger move will be if the data surprises to the downside,reinforcing the market’s speculation for RBA easing. To take advantage of these opportunities, we are laying out the following 4 orders.

***CANCEL EUR/JPY Buy order. We are still long EUR/CHF.

1. Sell NZD/JPY at 90.88

Stop at 91.48

Close 1/2 at 90.58

Close rest at 89.25

2. Sell NZD/USD at 0.7578

Stop at 0.7638

Close 1/2 at 0.7548

Close rest at 0.7325

3. Sell AUDUSD at 0.8187

Stop at 0.8247

Close 1/2 at 0.8157

Close rest at 0.8015

4. Buy EUR/AUD at 1.5037

Stop at 1.4977

Close 1/2 at 1.5067

Close rest at 1.5425

***Remember, if 2 orders trigger without one hitting T1 first, all other orders are canceled

BKSWING – New AUD/USD Order for 12.02.2014

Swing

The Australian dollar traded sharply lower today on the heels of the RBA rate decision. Governor Stevens stated that a lower dollar was “likely to be needed” – a turn of phrase that some analysts in the currency market understood as a signal that the central bank may become much more active in guiding the currency lower. The RBA is clearly concerned about the sharp decline in commodity prices, especially iron ore which represents one out five Australian export dollars to the country. Tonight’s more dovish language may have been a warning to the market that the central bank would be willing to consider another rate cut and as traders adjusts their own expectations, we could see further weakness in AUD. To position for this possibility, we are laying out a fresh AUD/USD sell order.

Remember we are still long EUR/CHF

1. Sell AUD/USD at 0.8370

Stop at 0.8430

Close 1/2 at 0.8340

Close rest at 0.8125

We still have the following pending orders on:

2. Buy NZD/JPY at 94.15

Stop at 93.55

Close 1/2 at 94.45

Close rest at 95.35

3. Sell AUD/JPY at 99.72

Stop at 100.32

Close 1/2 at 99.42

Close rest at 98.50

4. Sell EUR/USD at 1.2334

Stop at 1.2394

Close 1/2 at 1.2304

Close rest at 1.2175

5. Sell GBP/USD at 1.5565

Stop at 1.5625

Close 1/2 at 1.5535

Close rest at 1.5425

***Remember, if 2 orders trigger without one hitting T1 first, all other orders are canceled

BKSWING – 3 New Orders for 12.01.2014

Swing

It is a big week in the Forex market with 4 monetary policy announcements from the RBA, BoC, ECB and BoE along with employment reports from the US and Canada. In addition to these developments, we also have a number of U.S. policymakers speaking so there’s a strong possibility of big moves. We like to trade these opportunities through the Yen crosses – AUD/JPY, NZD/JPY and GBP/JPY specifically:

Remember we are still long EUR/CHF


1. Buy GBP/JPY at 186.58

Stop at 185.98

Close 1/2 at 186.88

Close rest at 189.75

2. Buy NZD/JPY at 94.15

Stop at 93.55

Close 1/2 at 94.45

Close rest at 95.35

3. Sell AUD/JPY at 99.72

Stop at 100.32

Close 1/2 at 99.42

Close rest at 98.50

We still have the following pending orders on:

1.Sell EUR/USD at 1.2334

Stop at 1.2394

Close 1/2 at 1.2304

Close rest at 1.2175

2.Sell GBP/USD at 1.5565

Stop at 1.5625

Close 1/2 at 1.5535

Close rest at 1.5425

***Remember, if 2 orders trigger without one hitting T1 first, all other orders are canceled

BKSWING Place Order to Buy GBP/NZD at 2.0058 Stop at 1.9998 Close 1/2 at 2.0088 Close rest at 2.0187

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After hitting a 1 year low during the early European trading session, sterling rebounded nicely today on the back of less dovish BoE minutes. The Bank of England felt that the market’s concerns about the economic slowdown and exchange rate are overblown and with 2 members voting for a rate hike, we could see a further squeeze in the British pound. We like buying GBP against the NZD because dairy prices continued to fall. On top that, NZD will sell off if Chinese manufacturing activity slows. 2.0 is an important resistance level for GBP/NZD which if broken could pave the way for a smooth ride up to 2.0. To take advantage of this view, we are laying out the following pending order to buy GBP/NZD:

1. Buy GBP/NZD at 2.0058

Stop at 1.9998

Close 1/2 at 2.0088

Close rest at 2.0187

We still have the following pending orders on:

1.Sell EUR/USD at 1.2334

Stop at 1.2394

Close 1/2 at 1.2304

Close rest at 1.2175

2.Sell GBP/USD at 1.5565

Stop at 1.5625

Close 1/2 at 1.5535

Close rest at 1.5425

3.Sell EUR/CAD at 1.3987

Stop at 1.4047

Close 1/2 at 1.3957

Close rest at 1.3625

***Remember, if 2 orders trigger without one hitting T1 first, all other orders are canceled