Two Pairs Set Up Nicely

  • July 21, 2004
  • Dave Floyd

Bo Harvey is writing
today’s piece.

 

We got a solid move lower in
the dollar last Friday, which was good to see as it has been some time since
we’ve seen a solid trend day in Forex.  Two pairs that have set up nicely as
potential longs against the dollar are the Yen and the New Zealand dollar. 
While a long Yen position certainly has fundamental and technical reasons going
for it, the Kiwi is set up purely on a technical basis.  The USD/JPY short sets
up on a break of 106.90 with a stop at 111.00; the NZD/USD long is set up at
current levels, with a stop at .6400 that will be tightened as the trendline
established on the May 16th low continues to rise.

 

The USD/CAD, mentioned last
week, hasn’t quite pulled back up enough on the daily chart for my tastes, and
is still looking a bit extended to the downside.  The EUR/AUD daily chart hasn’t
set up yet either as a short, although it is one I am certainly keeping on my
screen.

 

Have a great trading week, and
feel free to email if you have any questions on setups, etc.

 

Cheers,

Bo

bo@aspentrading.com   Â