Good morning folks! I hope you’re well!
Rather crazy to see what happened in the US overnight, surprised there wasn’t more volatility in the currency world or even the SPX.
I guess big institutions weren’t surprised, I guess we shouldn’t be either.
Anyway, not here to talk about politics? Let’s get into my FX watchlist!
FX Watchlist
AUD/JPY
Aussie Yen remains on my watchlist for a potential short. It is now within its area of supply, so we just have to wait for a trade entry to present itself if there’s a set-up that fits our trading plan
If you are wondering why I did not take a short on AUD/USD, an entry presented itself at 7am my time, it is because my strike rate on AUD/USD is actually rather bad – other 8 trades since 2016 the average return is negative.
CAD/JPY
Cad Yen is also reaching its area of supply for a potential short today. We reached it yesterday so hopefully it doesn’t take too long before we have a script entry for a potential short. Otherwise, I’ll be forced to stay on the sidelines if we exceed 24hours within the zone as per my trading plan.
EUR/AUD
Euro Aussie is approaching the area of demand we’re not there quite yet, but we could have an entry presented to us tomorrow, or even tonight, it’s worth keeping our eyes out on this pair.
EUR/USD
Euro Dollar is also approaching its area of interest, this time an area of supply not demand, so we could potentially see a short set-up being “offered” to us in the close future.
We’ll see how the price action sets itself up before we get an entry, as you may remember I don’t like taking trades where the price action leading up to an entry is more or less sideways, so we’ll have to wait and see how it looks.
GBP/NZD
Pound Kiwi is now within its area of demand, however, as mentioned yesterday, I am not looking to get into a long position before we reach the weekly stack, which is equal to the green box on my chart.
Once the price reaches the green rectangle I’ll be looking for a potential long, not before.
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