Net non-commercial longs rise for CAD, NZD, EUR

Currently, I am prepared for another round of the U.S. Dollar sell-off for the week ahead. The first indication is through last week’s commitment of traders report indicating a further rise in net non-commercial longs.

Three currencies caught my attention – Canadian Dollar, Euro, and New Zealand Dollar. In summary, most currencies experienced a continued increase in net long positions.

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The Canadian Dollar is an interesting case as this is the first time in weeks where the net non-commercial position switched over long from the short side.  This continues to be in-line with the price line on the USDCAD pair as the sell-off is expected to continue.

Following up with my previous post regarding the trade I’m carrying over the weekend, I have closed out the NZDUSD trade based on its inability to fill the open gap.

nzdusd1

This pair gapped down on market open and I left my position open as well observing the climb in closing the gap. However, the past 45 minutes is an indication that this will probably fail to break past the pre-gap highs. As such, I have closed this position at +8 pips. It’s simply better to wait out the pull back before making any long positions. In my previous post, I also mentioned that this pair is testing another daily level as outlined by the dashed line at a tad above the 0.745~ level. For the time being, it appears this level is holding up.

In the meantime, I did take a shorter term trade straight off a play of the technical levels. I admit I don’t do this very often, but here it is below.

I shorted the EURAUD off one hourly level with my take profit just above a daily level. This gave me a 2R, but the technicals were all there. After seeing this pair failing to break the 1.475~ price level with several tests, it made it a clear case for taking a short entry.

As of now, all major pairs remain rather quiet. For the time being, I do not expect to take any trades on major pairs.

Sounds crazy, but I have re-entered the EURAUD trade with a reverse position.

The daily level holds up in reverse fashion and the bullish candle covered all the previous retracement candles so this will be another shorter term trade as well.

The second trade I took is shorting AUDJPY, basically taking a bearish stance on the Australian Dollar on both fronts.

This was similar to my previous EURAUD short. The entry is taken in reference to the hourly resistance level. Price tested this level three times without making any strong efforts to break through. I took this short trade with my take profit just above daily level. This is still a short term trade that I do not expect to hold for more than a day.

 

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