FOREX PRO WEEKLY, December 05 - 09, 2016

[RahmanSL]

Amen. I wish Commander in pips will never retire. but unfortunately I had accepted the bitter truth, that in LIFE FOR EVERY BEGINNING, THERE IS AN END. So one day Sive might not be with us to provide this priceless analysis for us all but we must learn as much as we can now and as fast as possible and possibly have his contact so that we can friend him almost forever.

What??...You mean Sive is retiring to his private island complete with mansion, large pool, yacht, private jet, and young nubile female masseurs? ...well, well, well....good for him! He deserves all that!

 

[Sugit]

Good morning,
...

Hello Sieve,
You said about EURUSD it will probably be capped by 1.073, and indeed it got to that area. There we are looking for shorts.
Here with USDCHF we are looking for a DRPO sell.
As EUR and CHF are usually highly correlated, it seems that both can not be realized at the same time. And also for Gold there is a bullish tendency, and lately Gold is correlated with EUR movements.

Do you have any comment on this?
Thank you, very grateful for your comments.

 

[Sive Morten]

Hello Sieve,
You said about EURUSD it will probably be capped by 1.073, and indeed it got to that area. There we are looking for shorts.
Here with USDCHF we are looking for a DRPO sell.
As EUR and CHF are usually highly correlated, it seems that both can not be realized at the same time. And also for Gold there is a bullish tendency, and lately Gold is correlated with EUR movements.

Do you have any comment on this?
Thank you, very grateful for your comments.

Hi, all these relations that you're mentioned stand not between these assets themselves, but due their relation to USD. Actually there is no solid correlation between gold and EUR. If you will take a look at CHF and EUR charts it is difficult to say that they look similar, especially after SNB ceil placing on CHF.
But, you're right on short-term reaction of theses assets. Indeed they reaction very similar on economical and political events.

First of all - on EUR... our trading plan mostly suggest appearing signs of reversal, patterns on intraday charts, etc. that could point on the end of upside retracement. We do not suggest take short blindly, just at some specific level. It means that we do not try to predict this point but we watch over progress of retracement. If it will continue - CHF will complete DRPO target...

But in general, sometimes, both setups could be completed. This usually comes from a bit different reaction on some events. For example, EUR could stop and stand for awhile, while CHF will continue dropping, or something of this kind. They will not come in opposite direction, but their reaction will be slightly different and this could lead to completion of both results. I saw this very often.

But your suspicious is also reasonable, because DRPO Failure is also possible on CHF, no doubts...