its just money
DislikedIt's a bit complicated and I'm not sure what basis of knowledge about the market you have....
Do you know what a "carry trade" is?Ignored
DislikedI've been short since 1.9636 on jan 2nd. have 328 PIPS right now... I expect it to go even lower, but a break above 1.94 will take me on the long side most likelyIgnored
DislikedI think I understand the principle of a carry trade. Borrowing from a low interest currency such as the yen and investing in a high yield currency such as the Aussie or Kiwi.Ignored
DislikedHey Kharvell overall move is to 9100- 9040's area what area are you from by the way. It wouldnt happen to be washington, DC would it.
DislikedBasically correct. Now the looming problem with this investment is that the yen (or swissy) will strengthen and make the cost of paying back the loan too much. So when these "experts" or model funds get a signal that the yen will strengthen they will sell their investment vehicle in the high yielding currency and buy the low yielding currency to repay the loan. It turns into a snowball effect as more funds start to do this it pushes the prices.
The yen is showing signs of reversal technically and BOJ has a rate decision upcoming that is favoring a hike.
Last night it pushed the yen way down as well as the all the yen crosses. Factor in the commodities plunge recently it was due to happen.
So it's something to keep an eye on in the future.Ignored
DislikedIf Gold closes below the trendline it should be descending further.
Traditional understanding is higher gold = weaker dollar and vice versa.
So far it's making a bounce and that's currently coinciding with cable pausing it's descent
No visible reason to panic just yet for me though, haven't seen a reversal sign yet. If we pause too long that's a different story.
Minor tiny news in 15 mins, maybe that restarts the engine on cable.Ignored
Dislikedwhy did u say this, how did u know it was trying?Ignored
DislikedBTW, I would stay short on GBP/USD until it starts going back up, at which time I would go long. When I was long, I'd wait until it started going down and go short. When it quits going down and starts going up I'd go long again. That's just my own personal analysis...Ignored