This Trade Is Working Well…

  • December 27, 2004
  • Dave Floyd

With holiday trading in full
force, just some bullet point observations:

-  Rumors of
options traders protecting EUR/USD from a move above 1.3575.  Meanwhile thin
volume is exaggerating price moves with USD/CHF running up to intra-day highs of
1.1451.

-  The devastation due to the earthquake has left markets at even lighter levels
of activity than normal.  Asian volume was well off holiday averages with Europe
even lower.  Expect volume to remain at holiday levels.

-  We will remain on the sidelines unless some unusually robust trade reveals
itself, we are eyeing GBP/USD.  Short-term traders with their eyes set on
picking up a few pips here and there may find some trades.  Our long in EUR/CHF
from 1.5320 is still performing well, maintain position.

-  GBP/USD, despite dollar weakness is showing some vulnerability to the
downside as technical and fundamentals are beginning to weigh on this one.  Look
for a break of 1.9180-90 as a possible short signal.

 

As always, feel free to send me your comments and
questions.

Dave