Currency Strength and Weakness for Wednesday 7th August 2013

[Andrew Mitchem]

Hi Traders,

I make my suggestions every day based on where I see the market heading over the next 24 hours. Use my analysis below to aid your trading and to help you keep on the right side of the market.

My suggestions are posted by 6pm EST each day.


Overall there is strength in the JPY, EUR, AUD and NZD.

Overall there is weakness in the USD and CAD.

Trading Directions I am favouring for the next 24 hours


Buy Trades - EUR/USD, EUR/GBP, EUR/CAD, AUD/CAD

Sell Trades - CAD/JPY, GBP/JPY, GBP/AUD, GBP/NZD, USD/JPY


VERY IMPORTANT: These are not specific trades. Do not blindly place trades in the directions given below. Use your own trading strategy and look at taking setups that occur in the same direction as my daily analysis. If you don't have your own trading strategy then email me here for help



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To Your Trading Success.
Andrew

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- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
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[ozdean]

Favoured direction question

Hi Andrew,

I enjoy seeing your recommendations each morning. I understand matching strength vs. weakness. So, I am puzzled by some of your recommendations. E.g., today GBP was not mentioned as being strong or weak. And yet, you recommend watching for a possible short on GBPJPY. I understand watching on the basis of strength in JPY. However, is there weakness in GBP? Or are we to infer that due to the positive correlation between EUR and GBP? However, you already stated that there is strength in EUR. So, if there is positive correlation between EUR and GBP, then wouldn't we reasonably assume strength in GBP? And if so, then why would we look for a possible short in GBPJPY? Wouldn't we be matching strength vs. strength? I don't quite follow and look forward to any clarification you can offer.

Thanks,
Dean Whitney
Heathmont, Victoria, Australia

 

[Andrew Mitchem]

Hi Andrew,

I enjoy seeing your recommendations each morning. I understand matching strength vs. weakness. So, I am puzzled by some of your recommendations. E.g., today GBP was not mentioned as being strong or weak. And yet, you recommend watching for a possible short on GBPJPY. I understand watching on the basis of strength in JPY. However, is there weakness in GBP? Or are we to infer that due to the positive correlation between EUR and GBP? However, you already stated that there is strength in EUR. So, if there is positive correlation between EUR and GBP, then wouldn't we reasonably assume strength in GBP? And if so, then why would we look for a possible short in GBPJPY? Wouldn't we be matching strength vs. strength? I don't quite follow and look forward to any clarification you can offer.

Thanks,
Dean Whitney
Heathmont, Victoria, Australia

Hi Dean,

You are correct, I am looking for GBP weakness today. I had already mentioned shorts on GBP/JPY (already hit my full profit target so that was a great trade), and GBP/AUD and GBP/NZD plus a buy on EUR/GBP. However, as you mentioned, I forgot to include the GBP as a specific weak currency for today. Human error I afraid!

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
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[Red Herring]

Overall good forecast Andrew...
I am in for your signals

 

[Red Herring]

Hi Dean,

You are correct, I am looking for GBP weakness today. I had already mentioned shorts on GBP/JPY (already hit my full profit target so that was a great trade), and GBP/AUD and GBP/NZD plus a buy on EUR/GBP. However, as you mentioned, I forgot to include the GBP as a specific weak currency for today. Human error I afraid!

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>

To all of our surprise, GBP had an unbelievable turn back! What may be the reason!

 

[Andrew Mitchem]

While there was an opportunity to scalp short pound positions would we really categorize it as weak today?

Overall I suggested 4 possible pairs to concentrate trading that involved the GBP. 3 of those pairs gave excellent opportunites to profit in the directions I suggested. The GBP/AUD moved the opposite way but that's fine as there were no good trades going short so there's no damage. Personally I hit the full profit target on all trades I took on the EUR/GBP, GBP/JPY and GBP/NZD so overall that was a good suggestion regarding the GBP weakness.

Sure the GBP went sky high against the USD but as I mentioned yesterday there was weakness in the USD so that was not a pair I was giving much attention to yesterday.

Hindsight is a wonderful thing in trading and writing such a comment as you have done some 15 hours after I made my post would involve a high degree of hindsight.

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>

 

[Andrew Mitchem]

Overall good forecast Andrew...
I am in for your signals

Hi Red Herring,

Thank you

---

- Andrew Mitchem
The Forex Trading Coach
30 minute a day "full time" forex trading?
Learn how I do it>>