For now, let’s revisit one final currency pair.
This one in particular, had the most compelling signs on a reversal, yet I think many forex traders failed to see it.
Think convergence and divergence.
So this pair reversed around 9.000, almost on the dot, before oil prices turned around from its lows, and it’s now trading at 8.6547.
Did you catch it?
If not, and you’re looking to get in at this point, it’s safer (and more profitable) to wait for a correction, before jumping on the slide.
In an earlier forecast post, another currency pair was on the verge of a reversal.
Yep, the AUD/NZD.
If you caught it, then you’d be happy profiting at it’s current levels at 1.09508.
It took off pretty good, like a few other pairs on the verge of lifting off with the same potential.
Anyway, if precious metals and commodities were to rise from here on, I expect we may not see these levels for a long, long time to come.
Be on the right side (not wrong side) of the trade, amigo.
This pair has plunged since, and is currently making a correction at 118.87.
Where is it going from here?
Probably down, down, down, but of course it won’t go down in a straight line.
If you want to get in shorting this pair at this stage, then you know the drill.
WAIT FOR A REVERSAL.
Having tumbled since June this year, down to 1.4790 today, Cable looks set to bounce hard from here.
How much lower can it go?
I can’t remember which website I was reading a few days ago, but certain economists were predicting GBP/USD going all the way down to 1.2+. lol crazy, not going to happen.
In fact, this pair is likely to go up from here, and the risk-reward at this point is, in my view, fantastic.
A couple of days ago, NZD/CAD and USD/CAD were looking toppy.
But I mentioned a final pop higher could be coming.
Indeed, today we got what looks like a point of reversal, and if you sold on this rise, it could be all downhill from here.
Sit on your hands, kick back to a glass of iced lemon tea, and enjoy the ride.
Another pair that’s gone sky high.
New lows for the Canadian dollar against the U.S dollar.
No doubt, it looks really toppy at this point (same goes for NZD/CAD), but it could go for 1-2 spikes higher. And if it does? Then I’ll get into the trade.
Otherwise? Will wait for a better opportunity.
Watch oil price.
Only time will tell where this baby moves from here.
Either way, just like crossing a road, safety comes first.
One of my favourite kinds of trades to get into, is that of “extreme conditions”.
What do I mean?
Take a look at USD/NOK on your charts.
Do I hear you say holy moley!
Now, what would you do if you had my kind of trading mindset? The answer is simple. You’d place a stop just above 8.90, sit on your hands, check back in few weeks or months time, and let it ride allllll the way down from here.
Bang. Profit. Chill.
Forex trading opportunities like this don’t come everyday.
This one, in particular, is possibly once in a lifetime.
OK, so a few days ago in the previous USD/JPY post , I mentioned…
“In fact, if you haven’t gotten in on the trade at this point, and you’re looking to go short, it might be wiser to wait for a pullback back into the 122 – 124 range.”
Well, that’s exactly what we got today as the price launched up to 123.57.
Did you get in? I hope you did, because it could be all downward spiral from here.
Exciting times ahead indeed.
I got to say, the signals are coming fast and furious.
Just spotted another good-looking trade opportunity, and my guess is this is especially going to take off when commodities and precious metals do.
Could it drop lower? Sure, maybe a little.
But for the mid to long term (perhaps even starting today), look to the North to see pigs fly.