I don't really have an opinion on EUR. I just keep needing to get short USD and EUR/USD is just the default. I'm long USD against aud and cad. I can only go so short usd against gbp, since that is a choppy son of a gun. So that doesn't leave me with much other than long eur.usd, does it?
So why trade multiple pairs when what you seem to be doing is essentially long EUR, short CAD/AUD (or long eur, short commodities?)?
If I had a nickel for everytime somebody asked me that, I'd have a dollar. I'm consistently profitable, and have been since Nov 2011 when I started trading this way. Not a very long time in the broad scheme of things Everytime I get worried and start drifting away I lose money, and when I get back to what I was doing I start making consistent money again, or at least break even. But yes, many have told me I could just put the cross on, since in their mind it is the same thing I just don't see it that way and for me it is working Especiially when you spend all night adding to winners and losers
Daily Trading Forecasts (November 29, 2012) The markets remain volatile within some defined ranges. Today would feature a few important fundamentals; things that could have some impact on the markets. The Bank of England Governor King speaks today, and his speech would affect the GBP. There are also figures like Unemployment Claims, Pending Home Sales m/m, Prelim GDP q/q, etc., affecting the USD. EURUSD: The condition on the EURUSD requires some tact, as it is true of other pairs and crosses. Bearish attempts have always been contained; no matter how serious they looked. The bullish possibility in the market is still valid. The price is currently above the line at 1.2950, and may go to the resistance line at 1.3000 today. USDCHF: On this pair too, the short-term northward rally was checked, and the price moved downward. The bearish signal is still intact. The price is below the resistance level at 0.9300 and may reach the support level at 0.9250 today. GBPUSD: On Wednesday, the recent serious bearish pull that happened on this market was rejected just below the line at 1.6000. Right now, the price is above this aforementioned accumulation zone â which would be properly described as a range, especially in relation to the 1.6050 distribution zone. The bullish signal is still intact. USDJPY: Generally, the consolidation on the USDJPY in this week has been to the downside so far. It was so protracted that the RSI 14 period gave an indication of a bearish possibility; something that was not confirmed by the EMA 56, which acted as a barrier to further southward pull. As long as the price remains above the EMA, the bullish bias is sensible. A rise in the price is anticipated. The price seems determined to stay above the territory at 82.00. EURJPY: This week, the bearish correction on the EURJPY was serious enough: it was up to 130 pips. This was indicated by the Williamsâ % Range which reverted into the oversold territory. Since the EMAs still show a bullish possibility, the price stays above the demand zone at 106.00, and may break above the zone at 106.50, as it goes upward to the zone at 107.00.
I just pick one currency. I have done it with jpy, gbp, cad etc. and start out as neutral as possible, usually 1:1:1:1, so yes at that point it would be the same with the cross. But certain currencies will start drifting out of the band. At that point you are faced with the decision, do you want to add to losers or winners? So once you add, the cross is no longer in place and the position becomes lopsided. Profits are taken when the whole account hits the target. Losses are taken very rarely when everything goes to hell due to miscalculation of size. Like when I got on the wrong side of qe3 and everything just broke down and there was no way to restore order. Even then, it was an orderly retreat, and I would have made substantial money if I had held on, but the whole system had lost it's bearings and I couldn't with confidence make a decision.
Daily Trading Forecasts (November 30, 2012) Irrespective of the recalcitrant ranges and noteworthy corrections that took place this week, the markets were able to maintain their prevailing biases. Right now, the markets are trending strongly; as signals are very much confirmed. This scenario could be valid for the rest of Friday. EURUSD: This week, the EURUSD encountered a serious threat to its bullish bias. After a deep dip of about 100 pips, the market rallied and has continued to do so. The RSI period 14 is heading towards the level 70, while the price stays above the EMA11. The price is currently above the line at 1.3000, and may reach the resistance line at 1.3050, should this bias keeps on unfolding. USDCHF: Despite the serious northward correction in the price this week, the pair has continued its southward determination. The price is below the EMA 11, and the RSI 14 period is heading downwards the level 30. The price is testing the support level at 0.9250, and may break it downwards, while going further for the level at 0.9200. GBPUSD: Equilibrium zones and correction. In spite of these, the Cable remains bullish. The price is also above the EMA 11. Should the price cut the zone at 1.6050 to the upside, it may go up towards the distribution zone at 1.6100. USDJPY: The USDJPY was able to break upwards from the equilibrium zone it protractedly experienced earlier this week. The RSI period 14 is heading towards the level 70, and the price is far above the EMA 56. The territory at 82.50 has been broken to the upside, and the price might go further towards the supply territory at 83.00. EURJPY: This cross cleanly rejected the bearish threat that was carried out in the middle of this week. The Williamsâ % Range is already in the overbought region, as the price stays above the EMA 11. The price zone at 107.50 has already been attacked. Should the upward bias continue, the supply zone at 108.00 might not be spared from that attack.
Daily Trading Forecasts (December 3, 2012) Though the markets closed with minor corrections on Friday, the major trends are still expected to continue. Right now, the markets are around important accumulation and distribution zones, where there are struggles between bulls and bears. Breaks above and below those zones would determine what prices would do next. EURUSD: The EURUSD was bullish last week. This pair closed at 1.2987 on Friday, stalling around the line at 1.3000. On the chart, it can be seen that the price is determined to break the resistance line at 1.3000 to the upside, and should this prove to be possible, the next target would be the resistance line at 1.3050. USDCHF: This pair was bearish last week. It closed at 0.9279, as it seems the price would experience some difficulties in breaking the support level at 0.9250 to the downside. Should this happen to be possible, the next target would be the support level at 0.92000. GBPUSD: Generally, this market was bullish last week, though it was a weak bull trend. On Friday, the price closed at 1.6010, just above the accumulation zone at 1.6000. The latter has really done a good job in halting further bearish attempts. The bullish signal is still valid. When the price succeeds in breaking the distribution zone at 1.6050 to the upside, the next target could be the accumulation zone at 1.6100. USDJPY: The USDJPY closed at 82.47 on Friday. The market is bullish in both near-tern and long-term: the RSI 14 period is still above the level 50. Right now, the price is above the demand zone at 82.00, which should do a good job in halting further bearish threat. EURJPY: This is a bull market, and the price closed at 107.10 on Friday. The bullish signal is still valid; the fact that the Williamsâ % Range is heading down from the overbought region is understandable. The price is just around the supply zone at 107.00. Should the northward bias continue, the next targets would be the demand zones at 107.50 and 108.00.
Daily Trading Forecasts (December 4, 2012) The markets have moved with some measure of significance and volatility, especially in the directions of the overall trends. There are already new setups on the charts. Besides, more movements and volatility are expected today. EURUSD: This market moved up moderately on Monday, and the bullish trend is still intact. The EMA 11 is above the EMA 56, while the RSI 14 period is going towards the level 70. Right now, the price is almost above the resistance line at 1.3000. The next target could be the resistance line at 1.3050. USDCHF: The USDCHF traded sideways on Monday â refusing to go either upwards or downwards. There is a great support level at 0.9250 which is a kind of hindrance to the price. When the price breaks this support level to the downside, it would go towards the level at 0.9200. The EMA 11 is below the EMA 56, as the RSI 14 period is below the level 50. The bearish bias is still extant. GBPUSD: There was a moderate upwards movement on this market yesterday. The same thing may happen today; given the confirmation of buyersâ determination. It is expected that the price would break the zone at 1.6100 to the upside, thus making it target the distribution zone at 1.6150. The EMAs support the northward outlook; the Williams % Range is in the overbought region, which might portend a temporary retracement. USDJPY: The USDJPY almost kept on correcting lower recently. The price is still above the EMA 56, as the RSI 14 period is almost atop the level 50. If there is anything I would like to do here, it would be to open a long trade. One should wait for some bearish confirmation should one prefer a short trade. EURJPY: This cross rallied weakly and negligibly on Monday, oscillating weakly between the defined boundaries of 107.00 and 107.50. There would be a break above the zone at 107.00, and the price would target the supply zone at 108.00, either today or tomorrow. The Williams % Range in an overbought situation portends a probable downwards correction before the price moves further upwards.