Wednesday, December 23, 2009

Daily Currency Brief: 12.23.09

Today I will consider entry for shorting the dollar against major pairs for a short time frame 1-2 weeks or more depending on what the charts tell me. I have to double check my indicators and systems. Overall the EUR seems to be the most volatile at a glance though I feel the major pairs are correlating off US fundamentals.

At these levels I have recovered about 50% of my losses on the EUR. A reversion back to a mean. The question is which mean are we following now? Lots of evidence (evidence of strong volume confirmation and short term SMA downward pressure) points to a trend change so I will considering cutting losses if my technical setup indicates and quick moves to the downside, if prices continue to correct to the upside. The problem is the markets are very volatile and have high probability to getting trumped by fundamentals.

This will be a very delicate play with light volume going into holiday season.


Alexander LĂȘ
Analyze Capital LLC
Managing Parnter

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