ALMOST - Close but no cigar. Monday was a day where many of the trades I was looking for got close to setting up but not quite got there. USDJPY was the big one. I was super excited when we broke 116.00 as I was looking to sell just ahead of 116.50. But we never got up that high and a nice bearish reversal enued. The story was the same with the others as well. USDCAD didn't get down as low as I wanted and neither to GOLD. Still, it's all good and that's just the way things go with trading. Interestingly, as I had warned in the Monday technical update, as bearish as the Euro was looking and as bearish as it might be, selling after Friday's move lower was not the right play as the major pair was still holding above key support around 1.0500.
STILL THERE? - The only other trade that is on my radar right now that didn't do what these others did on Monday is AUDNZD. While USDJPY, GOLD and USDCAD got away from me, AUDNZD was still hanging out down around 1.0400 and still thinking about that next big drop below the figure and towards 1.0300. As you all know, I'm a sucker for buying dips here and would love to see one more sharp pullback so that we can jump back in. I suppose the one big risk as we get down here is that the market will finally want to break below parity, but it has yet to do so in recent years and I will be looking for another quick down and up that ultimately avoids parity yet again. Cyclically, AUDNZD should be looking to trade much higher in the months and years ahead.