Profit Mongers @ 11:00 PM, Monday March 08 2010
Hey folks,
Both the EUR/USD and GBP/USD have dipped somewhat Monday and seem to be good "buy on the dip" candidates to consider. EUR/GBP is in a strange spot of looking dangerously bullish, but with a major pullback long overdue, so it's hard to read in my opinion to pick whether GU or EU is the better long. A long here on EUR/USD around 1.3630 isn't too horrible, but an entry at a lower price closer to 1.3596-1.3620 would be even better. I still feel that the odds clearly favor exploring higher highs this week, but the longer they take to develop, the lower their odds get. So, essentially, I plan to play the long angle Tuesday and possibly Wednesday as well, but then scrap the idea if it stays rangebound past then.
On a similar note, USD/JPY has dipped enough that because it looks good for a bounce, naturally the EUR/JPY and GBP/JPY might be even better plays long than EUR/USD and GBP/USD. The risk here though is the stock market. If and when the stock market tops out and turns lower, yen crosses will likely selloff, while EUR/USD and GBP/USD may still have the ability to rally awhile.
Stocks continue what I believe to be a terminal rally phase before the next concerted selloff, but I have had trouble timing the turnaround on this extended move over the last month, so as I mentioned repeatedly last week, I'm waiting for clear, confirmed signs of reversal lower before I consider any shorter term trades. Long term of course, I believe stocks are poised very well for a short.
There's no economic releases planned for Tuesday this week, so the next news items we'll preview will be for Wednesday.
That's all for today's update. If you'd like to learn more about trading or trade along with myself and my collegues, come join us at Profit Mongers. Our subscription is very reasonable at $179 per month, and right now you can sign up for a 2 week trial to get started for only $29. This offer is for new customers only. Feel free to email me with any questions at sirpipsalot@profitmongers.com
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Sir Pipsalot
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