I feel like we are in a calm before the storm now. USDX has hit a resistance level, same with USDCHF… who knows WHAT the cable is doing? The fibre i’m hoping has it its low, maybe a little lower to ADR but I hope no more than that.
My SL is just below the ADR. Lets see what happens.
Edit: Stopped out 
What a horrible day today was lol
What an awesome day today and yesterday was! 
I’m short from 1.35117, with first profit taken at 1.33917 
This sure helps getting back some of what I lost last week 
Bullish USD yields bullish for USDX or foreign currencies?
yes, i thought the same way. It occurred to me that PF charts could be well suited to the MM profiles because they already have that boxed look with ranges between main support/resistance levels.
Price action this morning - classic move - the ecb report nothing new - but we had the down move, then the pause, then continuation move - what ICT talks about in the MM profile, hope nobody went long at the pause.
High Dollar = Low Foreign
I was looking for a deeper retracement to get in short, unfortunately it didnt happen…
1.3430 was looking good for reentry… Cant win 'em all
Hey all!
Taking what I think many will perceive (hopefully incorrectly) a risky trade…
Cable long @ 1.55071
USDX (Dow Jones FXCM) is in a bearish OTE & against the daily R2 pivot
Weekly OTE on Cable, it has slightly passed the 79% fib
reflections on the daily H1 & M5
Bullish divergence for the cable since London Open.
I’m looking for the Cable to move above the Asian high…
Trading outside the kill zones, I know… bad boy! :58:
I slept in today O_O hehh^^ probably a good thing.
Rod I am very interested, I did get that far in the book and it’s an intriguing idea. let me know if you start up a blog or website to chart your findings, I’m interested in following.
Regarding the USDX vs. I.R. Yields, you basically just have to sit down and think about, where does the money go? Say US Bonds are falling (I.R. Yields are increasing) the best thing is to sit and think, OK so if people get more money in US yields now, they are most likely to switch their money to USD meaning the demand for USD increases, and the demand for foreign currencies decreases, IN EFFECT USD Appreciates in value. (Unfortunately I have yet to tie in foreign bond prices into the scenario, which is something I should do heheh, like, what happens if US Yields increase but foreign yields increase faster, where does the money go?)
._.If anyone can write a scenario for that i’d be much obliged. >P
And look at EURGBP that makes you want to take this trade too,
I see the divergence, you mean bullish since there is a failure to drop while EURUSD has dropped considerably, correct? Not gonna take it but I’m watching to see how this plays out.
FYI : G20 starts today…and:
The Euro sank to fresh monthly lows in morning European dealing today in the wake of disappointing Q4 GDP growth that showed the region to be in the throes of a deep contraction. EZ GDP contracted by -0.6% versus -0.4% eyed as both core and periphery economies performed poorly in the last quarter of 2012.
With little fresh eco data on the North American calendar except the weekly jobless claims, the FX markets are likely to focus on the weak EZ numbers as well as any policy comments regarding today’s GDP results from the G-20 which starts today. If the risk off flows continue in US session the EUR/USD could test support [B]at 1.3300 [/B]as the day develops.
Yeah correct, the EUR/GBP was a factor… it is a risky one as the Cable is bearish & divergence hasn’t been my buddy for a while he he…
I think in terms of investment rather than trading - if bond prices falling (yield rising) investors are selling their bonds and either putting into cash or, more likely, buying something else, usually a safer option - like the usd or gold or sometimes chf.
The rate of selling can diverge between the different bonds, thus yield divergence, indicating a faster rate of selling say German bonds, this alerts a trader that investors are even more risk averse towards Euro bonds and so the Euro will fall faster than say the gbp.
Where does the money go? it’s all a big see saw - one side risk appetite, opposite side risk averse - it flows from one to the other.
Hummm decided to close half my position & tighten my stops… I’ve taken the habit of not trusting my analysis lately lol!
cable will blast through the roof now!
Ha ha! That’s what happened last time I closed out… Good US job data pushed her down, & my remaining portion got stopped out @ -8 pips
I’m watching Fiber and Cable. Better not to think to much
As it stands -
Market Structure 2
Punters 0
All simple when one stands back a bit
1H TF + MS = Gold
Invest time into understanding it…
Best, at least initially, to keep it simple.
US Bonds up (eg Diverj’ on lows) : Risk Off > Bond Up > USD Up > USDX Up > Fiber and Cable Down
Note that the US Bond market is many times larger than the combined British or German, mostly the mechanism via which the US funds its huge deficit, again many times larger than any other Nation- mind boggling actually.
H4 MS is platinum, at least for the time we (impression similar) seem to be in the trade.
PS pl price now higher than au :35: