Jan9 – Market Analysis

Personal observations

It was a fairly productive day yesterday – so the exercises in the morning really did help.  Scored 8/10 today.

Open positions – both of these have moved into my favour now – with both Sterling strengthening and Aussie weakening – thus GBPAUD is now at +140 pips and AUDUSD at +50 pips.  For GBPAUD, I moved the stop to 1.8448 (+28) and set T1 at 1.8577 (+157) for half of the position.  I did that after looking at pivot lines and Fibs.  For AUDUSD I moved the stop to 0.8954 – reducing risk to around 0.3R.

Markets overall

Fairly big day today – with two rate meetings.  Thus really need to stay out of EUR and GBP pairs, until the afternoon.

STAM analysis

Sterling continues to be very strong.  The others are all merging together – USD, CHF, NZD and EUR are all between 8 and 10 points – the weak ones continue to be AUD, JPY and CAD.

Thus on the whole – looking to buy Sterling, looking to sell the weak ones, and looking to sell CHF because it continues to weaken.

There are no new STAM setups as at this morning – well, none that I would like to take.  Additionally there is a ‘no trade zone’ for EUR and GBP

Equities – The European indices are still in S1B.  However they also cannot be traded right now because of the ECB & BOE meetings.  Additionally I still have the issue of not having proper pullbacks.

S3 Analysis

I am noticing that GBP is overbought across the board ahead of the BOE meeting – on the 4H charts.  I guess it’s normal that a currency with a 14 rating will often be overbought.

No new setups on S3 at this time.

 

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