I haven’t seen much potential trades lately as the markets are still in disarray with many companies posting lower profits and write offs.  The general consensus for the upcoming interest rate decisions coming out from the Federal Reserve seems to favour a mild 25 bp cut on April 30th.  On the opposite spectrum lies the differentiating policies shown by the ECB gear towards further possible inflation combating hikes as their CPI still remains above their comfort zone.

As for potential setups, I am seeing a lot of Yen and Swiss Franc appreciation on the longer time frames.

The Japanese Pairs: 

Any breakout showing Yen strength may signal a short entry on the pair.  Below are two examples of such on the daily charts: USD/JPY, CAD/JPY.  A similar setup can be also found on the GBP/JPY.

USD-JPY, April 15

CAD-JPY, April 15

 The Swiss Franc: 

Similarily to the Yen, the Franc has seen rapid appreciation in its currency against the USD, CAD and GBP (all of whom are on rate cutting campaigns).

GBP-CHF, April 15

EUR/USD: 

The crown jewel of the currency trading community keeps rising everyday and there hasn’t been any hints by Trichet stating a change in policy.  Thus, everyone should looking to keep capitalizing off its continued ascent.  Another powerful trending pair would also lie in the EUR/GBP pair.

Euro-USD, April 15

Happy trading! and I will be out of the country for beautiful Hong Kong for the next two weeks thus I will not be able to capitalize off these plentiful opportunities but I hope that I have shown you enough where you can score off major pips which may occur in the next few days/weeks!




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