BKSWING – 4 New Trades, Cancel EUR/JPY Order

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

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