Sidelines for now

It is still not clear what direction the talks in the US debt ceiling is going to take but a good compromise and a promising agreement to this will see some major volatility come Tuesday August 2nd. However, we saw a lot of swiss buying and it may be as anticipation to the US talks. Gold also saw new record highs at1632.40 as the Eur/Usd pair saw some pull back from 1.4229 to the 1.4400.

This coming week has some important fundamental news which we should be aware of. It is my opinion that we should not take too many short term trades especially against the trend.Stay on the long term as we wait to see a shift in risk appetite trends.

This week i will be watching the AUD/USD with the inside pin bar bearish fakey to see if it will actually pen off for a bullish reversal from the 1.0971 hoping for new high should the debt talks fail to yield any substantial results.

AUD/USD Trade

This was a good trade considering the beak out past the 1.0779 resistance and is now headed upwards towards the big round number psychological area of 1.1000. This would have been a great swing trade opportunity for many swing traders with patience and discipline.

Trading this week

The US debt ceiling is still an issue between the Democrats and Republicans with none of them willing to compromise. The deadline for the agreement is 2nd August next month. This will be an event to watch as it affects the volatility of the currencies.

On the other hand, the EU agreement that is supposed to help out Greece with its bail out plan has not moved the market as i thought it would. It was a clear indication of buy the rumor sell the facts as the currency is now trading at a minor lower top of 1.4440.

Back to technicals,most of the pairs have moved lower which include the Cable is now trading lower as is the GBP/JPY(the Dragon) coming off  resistance at 128.16 and the trend line from April 28th this year.