Trading Remains A Game Of Fading The Extremes

  • January 19, 2006
  • Dave Floyd


Dave Floyd is a professional FX and stock trader
based in Bend, OR and the President of Aspen Trading Group. Dave’s approach to
FX combines technical and fundamental analysis that results in trades that fall
into the swing trading time frame of several hours to several days. For a free
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Special Feature — January
19, 2006

 

With the dollar index (DXC)
testing recent range highs at 89.55; trading remains a game of fading the
extremes, not trying to catch a new ‘trend’.  At times like these we will often
look to some of the crosses as a way to find solid trades without the associated
volatility of the dollar.

 

 Short-Term Trade Ideas
(several hours to several days)

 

 

We see a possible good short
setting up in CHF/JPY.  The sharp sell-off in the last couple of days has
set up a nice bearish back-drop on the daily chart.  We will look to sell
(short) on rallies into the 89.65-80 level with expectations that prices will
move back lower towards 89.12 and perhaps lower. (continued….)


 

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

 

DaveÂ