All About Sweetness

SWEET JANUARY - The January trading continues to go well. On Monday, we took a nice profit after AUDNZD extended back up into some tough resistance in the 1.1050 area, and we also saw enough follow through on the GBPUSD short to tighten up the risk. As far as both of these markets go, the strategy will be to keep looking to take advantage as the opportunities present. AUDNZD should be going a lot higher and I will continue to look to buy into dips. GBPUSD may shoot back up and if it does, I will look to sell again, as I believe the market should see a more significant correction before it considers a resumption of this new uptrend that is becoming increasingly impressive into 2018. When we established the GBPUSD short play, one of the reasons I talked about, amongst many others, was the fact that there hadn't been a lot of news out on the Brexit front since December and we would probably be do for a fresh batch of headlines that would have many considering this latest run had gone a little too far, too fast. And so, there it was, with the Telegraph reporting talks of the transition period going from 2 years to 3.

cartoon jan 30

SWEET GOLD - As far as the rest of it all goes, I'm having a difficult time dismissing the fact that a long overdue period of risk liquidation could open some serious moves in USDJPY, with this market, which has been a favorite to buy on dips, possible vulnerable to a steeper decline that ends a multi-month consolidation, exposing weakness potentially back down towards 100.00. Now I do love buying USDJPY towards 100.00, but I would be very careful to be buying it into this range bottom when considering this possibility for a meltdown in global markets. With that said, I think it might be worth considering picking up some GOLD into any exaggerated dips over the coming sessions. This is a market that has seen some intense setbacks over the past several months, only to come racing right back, as if on a mission to clear major resistance up at 1375. While the softer US Dollar has been a factor behind gold's strength, it shouldn't be thought of as the only factor. In a world where this possibilities of risk liquidation and a period of pain in the crypto market are very real, it all feels like GOLD is slowly heating up and getting ready for some big days ahead. I will keep you posted if it comes our way.

Gold has taken a lot of hits over the past several months, but it refuses to stay down and could be getting ready to make a big run.

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