Just reviewing charts and making the initial plan for next week trading, I can't help to notice that both AUD/USD and NZD/USD charts look like there is no more buyers at these high levels. And both pairs have reasons to fall much further as Australian dollar had a dubious employment data and new Zealand dollar was sold off because of very weak retail sales.
Considering the FOMC Minutes release coming this week my general plan is to go long with US dollar again. Most major pairs are expected to keep range trading with positive bios for the dollar. I already have a short EUR/USD and a long USD/JPY in place and I will be trying to open new dollar long positions against AUD, NZD and GBP. The exact entries will have to be decided later. This is mainly because of a national holiday in the US(President's Day) and that typically means low volume trading Monday. Sometimes on days like this low liquidity causes strange moves that normally would not happen and these can provide perfect opportunities for lucrative entries.
I know this general outline of my trading plan seems boring and it is more less the same what I traded last week(in fact, the whole month with a few exceptions) but I don't see better or safer opportunities. And something else convinced me that going dollar long is the right choice: I reviewed currency forecast poll published on FX Street - and this is what Dukascopy Bank Team is predicting for next week:
EUR/USD - 1.0400
GBP/USD - 1.2200
USD/JPY - 114.00
Considering the FOMC Minutes release coming this week my general plan is to go long with US dollar again. Most major pairs are expected to keep range trading with positive bios for the dollar. I already have a short EUR/USD and a long USD/JPY in place and I will be trying to open new dollar long positions against AUD, NZD and GBP. The exact entries will have to be decided later. This is mainly because of a national holiday in the US(President's Day) and that typically means low volume trading Monday. Sometimes on days like this low liquidity causes strange moves that normally would not happen and these can provide perfect opportunities for lucrative entries.
I know this general outline of my trading plan seems boring and it is more less the same what I traded last week(in fact, the whole month with a few exceptions) but I don't see better or safer opportunities. And something else convinced me that going dollar long is the right choice: I reviewed currency forecast poll published on FX Street - and this is what Dukascopy Bank Team is predicting for next week:
EUR/USD - 1.0400
GBP/USD - 1.2200
USD/JPY - 114.00