Daily Report Tuesday 23rd June 2009

Dollar made a great start to the week - but as so often happens in the world of trading, the early bird gets the worm (Monday), but the second mouse gets the cheese (Tuesday). Don't know what happens on Wednesday. Probably, both bird and mouse will get eaten by the cat. It's FOMC day, so I do expect whipsaws. Small positions (which can be added to later), wide stops, both eyes on the screen are called for. I find a cold beer helps.

Stocks have looked weak early on in the week, and two closes for the S&P500 below the 200 DMA is rather bearish for stocks - but still the dollar manages to be red for the week.

Two years into this financial crisis, and the dollar is lower against 3 of the 4 majors now than it was at the beginning. Clearly stock traders are cleverer than FX traders.

FOMC tomorrow will probably lead to dollar-centric price action, so I am out of the GBP/JPY short which was triggered yesterday and today. EUR/JPY has an intriguing pattern on it though...

Currently long EUR/USD, short USD/JPY, and may go long Gold and short USD/CAD. I wouldn't touch GBP/USD with a barge pole - it's just silly. No plans to go long the dollar against anything just yet.

Here are my charts:-
Dollar Index:


EUR/USD:


USD/JPY:


USD/CAD:


Gold:


GBP/JPY:


EUR/JPY: