Market Update

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Posted 4[SUP]th[/SUP] July 2014 – 07:45AM London Time

Hey everyone,

There is nothing to really trade today as European & UK newsflow is quiet, with very little on the calendar to finish the week. Also US markets are closed for Independence Day, likely to keep newsflow and trading volumes very light.

However, here is a brief catch up on two currencies I’m looking at trading in the longer term and why.

The GBP is currently a very bullish currency that is being driven by speculation of a interest rate hike from the Bank of England by the end of 2014, I’m looking for a nice sell off on GBP/USD in order to start buying it back, good levels of support are around 1.7000 to 1.6800 with a long-term target of 1.7500 in the coming months.

I’m still viewing the euro as a bullish currency as long as it holds above 1.3500, this is because the market is still disappointed with the ECB, the market wants the ECB to introduce a QE programme in order to start selling euros, so until this point I will have a bullish bias on the euro. 1.3500 stands as strong support for the time being, you could look to buy the euro from 1.3550 with a long-term target of 1.3800.

P.S - If you want to learn more about how I trade, check out this link below

http://www.forexpeacearmy.com/forex...e-trading-course-forex-pro-jarratt-davis.html
 
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Van Quoc Nguyen

Recruit
Messages
6
Thanks...

Thanks for the heads up jarratt. Made some pips yesterday on the sell nzd and aud thanks to you. They were indeed short term trades. I had to get out at the end of the day because it was turning against me.

Best,

Quoc
 

naganiravi

Recruit
Messages
4
Hi Jarratt.

Thanks for the info and your analysis on EUR and GBP.

I would like to ask one thing that as your know yesterday US Data has been released but i was holding position on GBP/AUD and GBP/JPY, so what is the relation between US dollar and GBP, JPY, AUD currencies as both the pairs rallied up to 90 pips all of a sudden when the US data is released.

One more thing i would like to ask is do you trade only majors pair or cross pairs also, because you give analysis only on major pairs and even cross pairs provide good opportunities.

Thank you
 

Bangla Forex Rider

Private, 1st Class
Messages
51
@jarat davis

1 question about speech given by different authorities.
please explain about this speech given by different authorities .
as you mentioned previously it is impossible to predict about what they will say.
then how should we proceed in a trade if a speech is coming ?

speech sometimes make significant impact on currencies . so is there any way to handle speech to mitigate loss or take position in the most probable market direction??

thanking
shishir
 

Jarratt Davis

Special Consultant to the FPA
Messages
1,495
@jarat davis

1 question about speech given by different authorities.
please explain about this speech given by different authorities .
as you mentioned previously it is impossible to predict about what they will say.
then how should we proceed in a trade if a speech is coming ?

speech sometimes make significant impact on currencies . so is there any way to handle speech to mitigate loss or take position in the most probable market direction??

thanking
shishir
Hey shishir,

Firstly I would say make sure your risk is very low when these speeches are coming up, I trade with no leverage so 100 pips always equals 1% of my account, in my opinion this is the safest way to trade because if the trade goes against you, your account will suffer minimal damage, you could also tighten your stop loss or possibly move it to break even if you're already in a profitable trade, or get out of the market before the speech even starts.

I hope that helps!

Jarratt
 
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Jarratt Davis

Special Consultant to the FPA
Messages
1,495
Hi Jarratt.

Thanks for the info and your analysis on EUR and GBP.

I would like to ask one thing that as your know yesterday US Data has been released but i was holding position on GBP/AUD and GBP/JPY, so what is the relation between US dollar and GBP, JPY, AUD currencies as both the pairs rallied up to 90 pips all of a sudden when the US data is released.

One more thing i would like to ask is do you trade only majors pair or cross pairs also, because you give analysis only on major pairs and even cross pairs provide good opportunities.

Thank you
Hey naganiravi,

The reason GBP strengthened yesterday was due to EUR/GBP falling lower from policy divergence, this cause GBP to gain across the board. GBP/USD did dip lower after NFP however EUR/GBP was the main driver of GBP strength.

I tend to stick to the major pairs because they are less volatile, this makes trading easier and less stressful for me because I have managed accounts to look after, but I do agree that some cross pairs provide good opportunities, it's just my personal preference :) I hope that helps!

Jarratt
 
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forexfool

Recruit
Messages
6
Hello Jarratt,
Re your 100 pips strategy, as I understand that means you need a 1 cent move to make a substantial profit, but in the EUR/USD pair that is a huge move, and even a half cent is big and in the usual tight ranges. It seems to me very hard to trade. How do you manage that??
Best regards.

A FOOL AN HIS MONEY ARE SOON PARTED
 

Brett Reynolds

Sergeant Major
Messages
717
Hey J. Interesting to know your views on the JPY as against the majors its been in a range now for several months.
 
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