Looking to buy a dip in EURUSD to hedge part of the risk
- I went short Cable @ 1.3170: Numbers start to come in mixed at best. 1.3180 intermediate, then 1.3220/30 should exhaust this move if any USD weakness was to occur.
- I went short AUDUSD 0.7598 , looking to add 0.7625 : Numbers are turning south , wages don’t bode well for spending, economy and housing debt being where it is , I feel AUD has more to run to the downside
- I am long USDCAD just ahead of the 1.2700/10 support. It broke and held twice and oil is telling me this could run a bit further, maybe back to 1.29.
- BUT , that’s a little to one-sided USD for my likings these days so I ‘d like to see a 1.1800-1.1770 retracement on the EURUSD front to hedge some of this USD risk and as
EUR is the strong link in today’s markets, better numbers , better growth, it feels like the most obvious currency to lay off part of the exposure against.
- One could argue to buy JPY or CHF to hedge the risk but, despite both strengthening overnight with model accounts reportedly buying( JPY especially), what holds me back are the respective CB’s deep involvement in both currencies.
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I bought the EURUSD bit against the AUDUSD at 1.1792 . Still short cable . Sold half usdcad out @ 1.2780 , let the rest run or re-load 1.2710/20 , stop under 1.2695 for a painless trade