Any Suggestions for Trading through end 2010???

[RahmanSL]

Semi-Newbie thinking:

With both the US & Europe with very uncertain economics woes, doesn't it make sense to trade against these two currencies with JPY/AUD/CAD/CHF and go Long positions with Gold & Silver?

Most traders think there will be further downside to the EUR/USD due to the European being worst off than the US, and this is reflected in last week's market sentiment. However, it does seems like the Market does not have that much confident in the US either as proven by having tested 1.3165 very briefly. and than rebounded to 1.32 level behaving very much like that's the resistence level.
Next week would be interesting with upcoming holidays and end year 2010 just round the corner. Heck, I think if I am going to trade the EUR/USD, I will have to watch market movement longer before entering any trade....or just simply take a pass on that currencies pair.

All views (professional or otherwise) are welcome!

 

[Pharaoh]

The second half of December can be unstable. A lot of big traders take that time off, so liquidity can be thin. Another issue is that some international companies may need to reconcile their books as the year ends so might place large orders to buy or sell currencies. In a thin market, this could cause large spikes in either direction.

 

[RahmanSL]

Thank you son-of-Ra'a for those info...I have not traded Live last year and so this will be my first.

Hmmmm, so the Big boys will be taking time off to play, while Institutional Players will sweep their houses and take in new tenants for the New Year...
...hmmmm, interesting and potentially profitable or to lose a ball or even both of them for those who dare to take the risk!

Guess I will observe the market carefully this week and see whether it's better to follow the Big Boys or the Institutional Players.
Seems like to me some currencies pairs are heading South for the winter...maybe I'll place a couple Long positions on those pairs touching nearest to the South Pole (like the EUR/AUD, EUR/CHF, and USD/CAD) and see what the New Year brings : )

Thanks again for the info.