<b>1.<span style="text-decoration: underline;"> INTRODUCTION:</span></b>

Since last weekends “Weekly Fx Drive-Thru”, I am pleased to announce that I have re-commenced trading again...the boy is back!!

The China bank debt write-off news overnight (3 times greater than originally thought), has really pulled the rug from under the commodity currencies. Prior to this news, I was in the camp that believed that as long as U.S. equities were grinding higher, or, consolidating, the AUD/USD, NZD/USD and USD/CAD would remain well supported. Following the Chinese news, I am now of the opinion the trade is to sell into any rallies (AUD &amp; NZD) or pullbacks (CAD). At the time of writing this blog (Wednesday morning EDT), these rallies or pullbacks so far have been very shallow.

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<b><span style="text-decoration: underline;">2. EXISTING LIVE TRADES:</span></b>
<p style="text-align: center;"><strong>EUR/CAD</strong>
<strong>Long</strong>
<strong>Position Size: 20%</strong>
<strong>Entry / Cost Average: 1.4081</strong>
<strong>Stop Loss: 1.4140 (trade now protected with profits)</strong>
<strong>Limit / Take Profit: 1.4800</strong>
<strong>Present Position: + 116 pips</strong></p>
<p style="text-align: center;"><strong>GBP/NZD</strong>
<strong>Long
Position Size: 20%</strong>
<strong>Entry / Cost Average: 1.9125</strong>
<strong>Stop Loss: 1.9191 (trade now protected with profits)</strong>
<strong>Limit / Take Profit: 1.9400, then 1.9760.</strong>
<strong>Present Position: +135 pips</strong></p>
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<b><span style="text-decoration: underline;">3. POTENTIAL TRADES ON MY RADAR:</span></b>

I am looking to short the NZD/USD, AUD/USD and go long the USD/CAD. I am waiting for rallies or pullbacks to specific levels to achieve my goal entries.

The following limit orders are already in with my brokers to enter if the following entry levels are achieved.
<p style="text-align: center;"><strong>1. AUD/USD</strong>
<strong>Enter short at 0.9660</strong>
<strong>Stop at 0.9710</strong>
<strong>Initial target 0.9450</strong></p>
<p style="text-align: center;"><strong>2. NZD/USD</strong>
<strong>Enter short at 0.8420</strong>
<strong>Stop at 0.8540</strong>
<strong>Initial target 0.8000</strong></p>
<p style="text-align: center;"><strong>3. USD/CAD</strong>
<strong>Enter long at 1.0270</strong>
<strong>Stop at 1.0230</strong>
<strong>Initial target 1.0420</strong></p>
In addition, earlier this morning (Wednesday), I closed my GBP/CAD long for +25 pips. I did this because, I was spooked by the heavy overnight trading of the GBP/USD, and the fact, that the GBP/USD failed at 1.6260 twice to form a double top. Whilst I am still live with the GBP/NZD I have a protected profit position. The reason I closed the CAD cross was simply on the basis that this pair was pulling back and eroding my profitable position more strongly than the NZD cross.

I am looking to re-enter the GBP/CAD long, and I will re-tweet when I think it is good from my trading perspective to do so.

I missed the EUR/AUD and EUR/NZD overnight. So I need to gauge the market before looking at these pairs to trade long, obviously, I am looking for pullbacks.
<p style="text-align: center;"><strong>EUR/NZD: enter long around 1.6380 if I can get it!</strong>
<strong>EUR/AUD: enter long around 1.4250 looks like a reasonable area if it pulls back.</strong></p>
<p style="text-align: left;">The GBP/AUD, suffers from my same thoughts as the GBP/CAD and GBP/NZD. If I decide enter and go long I will tweet.  The level I am looking at the moment is in the region of 1.6730.</p>
One piece of data to note and to bear in mind, pullbacks in the EUR/USD have not been as strong the GBP/USD. Should the EUR/USD make a run for 1.3800, it should drag the GBP/USD with it and it may finally breakthrough 1.6260. At this point my thoughts on the GBP crosses would change.

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<b><span style="text-decoration: underline;">4. FINAL THOUGHTS:</span></b>

Always be aware, just because equities in the Asian and European sessions have sold off, it does not mean that the U.S. session will follow suit. U.S. equities have the habit of shrugging off bad news and continue to move higher.

Trade with this in mind and trade carefully.

Good luck and take care.

Scott Pickering
The Pip Accumulator
Wednesday October 23rd 2013

FOLLOW ME AT:
Twitter: @pipaccumulator

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