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Wednesday, December 5, 2012

Monthly Trading Updates On Exotic Crosses [December 2012]


“I certainly don’t expect anyone to make 10% a day in their account. What about per week? Still a bit unrealistic. Monthly? Possibly. Quarterly? Probably. Yearly? Definitely so!” – Rick Wright

 

Last month, the currency markets were generally able to maintain their predominant biases, in spite of prevalent corrections and equilibrium phases. These biases are expected to continue in the month of December 2012 – it’ll even be seen till the end of 2012. However, this doesn’t rule out the possibility of pullbacks and rallies in near-term. 

 

 

Below is the summary of some of my trading forecasts this month:

 

AUDUSD

Primary trend: Bullish

Last month, the AUDUSD consolidated to the upside. We can say that the bullish trend in the market is still valid. The MACD histogram and signal line are above the zero line. The ADX +DI is still above its –DI counterpart. I would prefer a long trade for this month.

 

AUDJPY

Primary trend: Bullish

The bullish trade that was called for the month of November 2012 was valid on this market. This cross moved up by more than 300 pips last week – good news for trend riders. Right now, this bias is still valid. The MACD and the ADX are still showing very strong bullish inclination, I would prefer to go long.

 

 

EURNZD

Primary trend: Bullish

This cross moved up moderately last month. The northward bias is till valid, though the trend is very weak right now. The ADX signal line and histogram are still above the zero line, but the ADX period 14 needs more confirmation before a long position is opened.

 

EURCAD

Primary trend: Bullish

Despite a dip in the price at the beginning of November 2012, the price is still bullish. It can be said that the price has gained what it lost, as far as October is concerned. The ADX 14 is pointing towards the level 30, showing a strong trend (the ADX +DI is above the -DI). Even the MACD supports this view. BUY.    

 

 

AUDNZD

Primary trend: Bullish

This exotic cross broke upwards in the earlier part of the last month, but was caught in some equilibrium zone towards the end of that month. There are conflicting indications on the chart. The ADX 14 is giving a sell signal while the MACD is giving a buy signal. It is better to stay out of this market right now…till a clearer signal signal.

 

 

GBPCHF

Primary trend: Bearish

The GBPCHF cross dropped by more than 230 pips last month. Right now, the price is around the accumulation zone at 1.4800, and should the price break it downwards, the next target could be the accumulation zone at 1.4700. The indicators on the chart also give bullish confirmation pattern. 

 

 

Conclusion: Just because a seemingly perfect setup occurs, that doesn’t necessarily mean that it must be a winner. Consequently, sometimes a trade may look unsure, but in reality it may be that our maturity and patience is simply under test. We shouldn’t impulsively take any signals we see, but we should take into consideration other factors as well before taking a trade. It does not matter if your situation looks hopeless. Risk management and positive expectancy will eventually bring good returns!

 

Some mornings I wake up with appreciation in my heart. I am so happy to be a trader, and I’m thankful for that. How grateful to say that we love trading and that trading is good.

 

The article is ended by the quotes below:

 

“There are only two types of people that want to learn to trade: those that want to know everything about trading and are prepared to spend the time to learn about the markets and those who just want to make money.” -  John Bartlett

 

“…The get rich quick idea can have quite the allure. The problem is that nothing works that way. To trade well you have to get comfortable with taking losses. Over and over and over.” - Richard Chignell

 

Your questions and opinions are highly welcome.

 

Thank you.

 

With best regards,

 

Azeez Mustapha

 

Forex Signals Strategist, Funds Manager &Coach

 

For more articles at FXempire.com, go to:http://www.fxempire.com/author/mustaphaazeez/

 

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