Almost all currency pairs opened with a gap down when the currency market opened today and well, this was expected considering all the political stands after the exit votes. Without a doubt this week Brexit talk will take centre stage and since it came as a shocker to the market, adjustment won’t be coming straight away and yes, there will be no rate hikes from the Feds. The only sound thing for the G7 to do will be to stabilize the market through currency intervention and we saw that when PM Abe instructed finance minister Aso to intervene and bring order to the market. In my Opinion, this week’s fundamentals won’t be that relevant and we look forward for Yellen and Draghi’s speech today, tomorrow and Wednesday. Pay special attention to Draghi because of the Euro and Scotland pressures too.
So, our game plan for this week will be as follows:
This pair opened with a gap down and we shall wait for that gap to be filled, the 15Min chart is rising with the stochastics swinging in from the oversold region at the Yearly 50% Fibonacci retracement level. Because we are looking to short, we shall only do that at the 50% Retracement level drawn from Friday’s Hi-Lo and that will fall at 0.713 levels when the gap will be completely closed, a level which will be hopefully struck in the European Sessions.
So this is the strategy:
Sell Limit-0.713
SL-0.718(Because of the market are not that stable)
TP-Open-We shall be trailing profits.

Leave a Reply