July 25th - July 30th 2010

I was stuck on the road yesterday so I missed my Sunday post. It looks like risk-on is the way for the market. We are close to critical resistance levels, however, with the recent revision of May numbers to much less negative outlook, it looks like the market has caught on the "double-dip may not happen" school of thought. That said, here is our trade:

EURUSD long at 1.2905 SL 1.2705 TP 1.3150

We have to keep a wider stop to give the trade some room as we are near to the 1.3000 - 1.3150 no mans land. If the pair move higher then we can expect to see 1.3300 - 1.3500 shortly. If more bad news comes out then there may be some better entry positions coming up.

There may be some unwinding of USDJPY positions due to the recent changes in leverage rules in Japan applicable to their retail market. This may boost the USD and negatively affect our trade.

Levaz

EURUSD long at 1.2905 SL 1.2705 TP 1.3150

Our order did not get picked up, but it still is a good play to buy the deep dips. The ideal buy spot would be around 1.2750 with a 100 pip stop. So if the pair drops down, you may want to consider getting in around the 1.2750 - 1.2800 area. Remember that the Chinese and SNB are off loading a lot of the Euros that they bought recently.

For tonight, we will consider another major:

GBPUSD long at 1.5525 SL 1.5425 TP 1.5750

You may also want to ride the recent Yen selling with

GBPJPY long at 135.50 SL 133.30 TP 140.00

I have reasonable doubts that the pair will come so far down, so the aggressive trades may want to consider using a BUY STOP once the pair has gone below by at least 30 - 50 pips from 136.50. So, ideally, if it does come down and seems to stall around the 136.00 area, that is your cue to either enter a BUY STOP (i.e., buy when it is rising) OR buy at the lower prices at which it seems to be stuck - 136.00 ish. The stop loss and TP remain as indicated above.

Those that are not following the price action and market news, stick to the "safe" entry provided above - 135.50

Levaz

GBPJPY long at 135.50 SL 133.30 TP 140.00

Still in trade, California declaration of a fiscal Emergency took down all Yen pairs starting with the USD.

USDJPY long at 87.47 SL 86.47 TP 88.50

In trade, close to being stopped out.

USDCHF long at 1.0550 SL 1.0375 TP 1.0750

Also in trade, the bad news is that the recent lows were broken, but held up.

Levaz

GBPJPY long at 135.50 SL 133.30 TP 140.00

came so close to SL, Move SL to break even or lock in about 10 pips of profits.

USDJPY long at 87.47 SL 86.47 TP 88.50

Stopped out.

USDCHF long at 1.0550 SL 1.0375 TP 1.0750

Still about 100+ pips down.