Less risky atmosphere today but the theme still in play overall
The massive risk aversion tone in the market has been receding during today’s Asian session and early London session with equities in Asia and Europe all green across the board.
A pullback after the last two day’s selling could have been expected though. Even though the market seems more positive so far, the worries over trade wars are far from over.
Looking at the markets, there is not much in terms of data releases which we would expect to move the markets today.
For now, we will keep our focus on the Antipodean currencies and trade them in line with the recent trends which have unfolded earlier this week.
Our pair selection for today:
We have chosen the NZDJPY as one of the pairs we will be watching closely today to look for trading opportunities.
NZDJPY – H4
NZDJPY – M30
We expect the market to either stay range bound or continue the retracement started in the Asian session. Currently, we are still holding our shorts on this pair.
We would be interested in shorting further rallies on the NZDJPY with the NZD GDP release due later today. A miss on data would be quite a blow to the NZD which has seen numerous negative data releases recently.
Any drastic changes to the recent risk sentiment would have a drastic impact on this trade idea so keep a close eye on those.
Also, technically the pair is close to very important support levels on the daily and weekly charts, so keep that in mind if you are planning to hold the trade.
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Risk Disclaimer: Forex Trading carries a high level of risk. It is possible for traders to lose entire trading accounts if they do not know what they are doing. This post is not an enticement, signal or recommendation to buy or sell any financial instruments. All of the information in this post should only be considered as general market commentary and should never be used as trading or financial advice.
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