JonSnow's Blog

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Range Bound Trading Expected

The traders are slowly returning to their desks after end-of-year festive brakes but the Forex markets are still in the holyday mode. Not much action is expected with most pairs trading in a range bound fashion. The Asian session brought some dollar buying and both Euro and Yen were offered.
I decided to buy both Euro and AUD against US dollar as I expect both to keep appreciating until they achieve higher levels attractive enough to short them later in the week. My other ideas for this week is…
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Greece & China Risk Aversion

I feel that risk aversion is quickly overtaking the markets and it's not only the Greek drama keeping investors up at night. Now, the turmoil in China stock market is spilling over to other markets and commodity currencies are nose-diving. The one true winner in all this uncertainty is the Japanese Yen.
So, I opened 3 JPY long positions this morning - against EUR, USD, GBP
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