I went through the matrix and labelled all the pairs. All the AUD pairs continue to have issues with the momentum – where it looks as if it is changing.
On the Daily Matrix pairs are evening out – CHF, JPY and EUR are now sitting on equal points – GBP is strong and USD and AUD are weak. If we are only going to trade strength v weakness then we need to look at GBPUSD (which is S2B) and GBPAUD (which is not in a setup because of the AUD’s changing momentum).
We can also consider AUDJPY (but this is weakness v mediocrity) which is a S2S.
On the weekly matrix we would consider EURAUD and EURJPY – neither are in a setup. And also AUDUSD (no setup) and USDJPY (which is S2S – thus the Weekly matrix contradicts with the short term situation).
Looking at GBPUSD – as in previous days, we are looking for bullish price action on the chart, because there has been a significant retracement. Once we see bullish price action we can go long.
AUDJPY – this pair is consolidating – there has not been a retracement – no trade.
So in summary we have nothing to trade. We exploit the advantage we have as private traders, in that we can sit on our hands and choose not to trade.
On that note, I shall go for a skate session on the smooth bike track before meeting up with my coach Paul and fellow trader Wayne!