Skip navigation

Tag Archives: foreign exchange

Trade: 1 Day AUDUSD Call Option expiring February 5th

After my spot trade earlier in the day, I kicked myself for not keeping the spot position and instead write a call option as AUD continued to strengthen.

I suppose I was pre-occupied by my impending lunch with my father, so decided to just square off the spot trade.

Nonetheless, I saw the opportunity again later in the day, so I decided to buy a call option for one day at the strike of 0.8842 when spot was 0.8822 with a premium of 21bps and breakeven of 0.8863.  At about 2am, the AUDUSD looked alittle peakish…………so I decided to sell the option at 0.8935 for a trading profit of 72bps.

Trade: Stop if Offered AUDUSD at 0.8778

This morning I had a strong gut feeling that the RBA would begin to sound more positive and less dovish.

So prior to the RBA announcement and statement at 11:30am Singapore time, the spot was 0.8758 and I placed a spot order to stop if offered at 0.8778.  The order was triggered within 1 minute of the announcement and immediately AUDUSD shot up to 0.8845.  When it started coming off, I decided to sell the spot position at 0.8822 for a trading profit of 44bps.

The 74K NFP question or mystery?

The non farm payroll number certainly surprised the markets last Friday with a 74K print when the whole world was expecting a 196K estimate.

It gave forex traders the ammunition to beat up the USD and that they did, with all the majors gaining by one big figure.

Then articles started coming out in the press, speculating whether or not this is a simple blip or a precursor to a further weakening in the US labor market.

Personally, I believe the NFP numbers will usually experience anomalies during the winter months, when less people are working and less employers are employing…….all because of the weather. This winter is a harsh one in the U.S., and in Europe, therefore, I expect employment to be weaker in the next two months.

From Monday to Tuesday, the EUR and GBP started correcting and giving up gains from Friday, however, the AUD and JPY continued to grind higher against the USD. The AUD helped by the buoyant housing market, however, the structural economy is still weak. The JPY was alittle puzzling, but maybe, it’s a reversal from the long bull run the USD had against the JPY starting from 101.00 a month ago.

Chinese New Year is on January 31st and I will be busy with family affairs starting next week right up to the first day of Chinese New Year. Admittedly, I haven’t really jumped back on the trading chair since Christmas and I really need to in order to start the new year with a nice foundation.

I will be posting the November and December performance review shortly and an overall experiential feedback of 2013.

Trade: Short AUDUSD at 0.9112, SL at 0.9130 on December 11th @ Wednesday

Just as I did the short trade in the GBPUSD, the AUDUSD also looked good from a charting point of view, so I also executed a short AUDUSD at 0.9112 with a stop loss at 0.9130.

Later on in the night, I squared the position at 0.9028 for a trading profit of 102bps.

Trade: Short GBPUSD at 1.6390, SL at 1.6410 on December 11th

My charts looked great in the evening of December 11th, with the Ichimoku and Stochastics indicating a potential short opportunity in the GBPUSD.

So I executed a Short GBPUSD at 1.6390, stop loss at 1.6410.

An hour later I took profit at 1.6363 for a trading profit of 47bps.

Trade: Long GBPUSD at 1.6350 on December 9th

My charts; Ichimoku and Stochastics indicated a possible break up of the GBP, it started at 1.6340, at 1.6350 I bought GBPUSD with a SL at 1.6330.

Today, it hit a high of 1.6462 and I decided to lock in my trading profits and sold the position at 1.6447 for a very handsome 97bps.

Nice Christmas present.

Trade: Bought Gold (XAUUSD) at $1,232, SL at $1,222

Last week on December 5th, I saw an opportunity based on my charts; gold appeared to have bottomed at $1,211, though the greater volume of trades was done at about $,1,219.

Recent high on November 29th/30th was about $1,254.

I am not sure whether there is enough momentum to bring it back to the last high, it’s currently trading at $1,244.

Then again, with the budget looming in January and the debt ceiling in March, maybe, it may be worth the while to hold the position.

Hmmmm………I am up $12/-, and to sell an option till January 30th, 2014 at $1,246 will give me premiums of $30/-.  Sounds like a good trade.

Done, just executed selling a call option XAUUSD at $1,246 expiring January 30th, and receiving premiums of $30/-.

Trade: Short GBPUSD at 1.6371

My charts set up a potential short trade on the GBP based on Ichimoku and Stochastics.

I decided to short the GBPUSD at 1.6371 at about 4:45pm and I squared the position post BOE at about 8:50pm at 1.6333 for a decent trading profit of 38bps.

However, it’s past midnight here in Singapore and the GBP has continued to soften to 1.6320………oh well……at least, I still locked in a profit.

Trade: Short GBPUSD at 1.6380

This afternoon at about 4pm, my technicals; ichimoku, ma and stochastics indicated a potential trade.

I decided to short the GBPUSD at 1.6380 and then squared the trade right after the weaker Services PMI data at 1.6338 for a trading profit of 42bps.

Trade: Short USDJPY at 102.70

This afternoon at about 4:25pm, my charts; ichimoku, ma and stochastics showing a possible trade.

I decided to short the USDJPY at 102.70, I kept watch on the trade and later on squared the trade at 102.35 at about 9:25pm.