Trade’s for the upcoming week.
Short:
EUR/USD: 1.2760 SL: 1.280 TP: 1.26
AUD/USD: .9840 SL: .990 TP: .96
Trading rationale:
With the Greek crisis escalating as European leaders and Obama continue to have more frequent talks. Time winds down as the next Greek debt payment approaches in the upcoming month of June. Don’t be fooled by wall-street and the 3% drop in the Dow this past week. I firmly believe “sweet words of swift fiscal reform, as well as a vow from world leaders to keep Greece in the Euro-Zone at any cost necessary” are not sufficient to bolster mass consumer confidence required to bounce the euro away from an eminent continuation of a now global bear market. Essentially leading the EUR/USD to parity. Keep in mind two pairs this past week that i continue to keep my eyes on broke the parity levels that physiologically spook investors and day traders alike (USD/CAD, AUD/USD) Oil prices, gold, and silver fell this past week, also spurring a rally in the greenback. As a result of significantly low interest rates in a growingly uncertain economic recovery, foreign investors are like to flea to the USD and JPY as a safe haven from rapidly falling higher yielding currencies. Risk aversion is clearly visible and will Continue to become visible in the upcoming week. Take head and follow the lead, one might say. be prepared for a bounce I the advent one happens, but understand the probability is against a significant recovery in the next few weeks ahead, at least until Greece steps out of the spotlight.
These are news based trades as I do not see the present market being a technical market. Market sentiment is what’s currently up at the plate as investors flock to safer returns and take on less risk. I do not take responsibility for you loss, so please do some of your own research, do not simply take my words for gold. I’m no expert by any means even though I may have read numerous articles to base my thesis. As I persistently try my best to stay up to date with the current, I advise you to trade at your own risk. Please use at maximal the common 2% of ones total capital per investment to play it safe. Good luck and happy pipping!