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

I do not have much to write about this time as I am basically sitting back in cash, watching the TV and reading various fx reviews whilst waiting for the politicians to settle.

The big news is obviously, that the high stakes game of chicken in Washington continues. Other important news is that Janet Yellen will later today be appointed as Ben’s replacement in the FED chair. It’s all exciting stuff; one can hardly contain the excitement.

Very interesting times lie ahead as we approach the “Debt Ceiling” deadline. One thing I do know about with regards to negotiation is, the continued rhetoric and repeated statements saying that you are not moving from your present position makes it very hard to move the longer time drags on. Both sides are standing firm and without doubt one side will lose face in order to reach a settlement. This will not be a pretty settlement. Watch this space as something has got to give.

Those of you who have followed my blogs for sometime will know that I am a cautious trader by nature, I hate losing money, and, having lost money in the past I am now very disciplined in my approach to placing trades. I miss a lot of trades because I will not chase trades lower or higher. I try my best at all times to wait for prices to hit my target areas before either buying or selling. My reason for writing this is simple. As we enter a period of increasing market uncertainty the fx moves can be quite volatile and it is easy to get suckered into trades because of greed. Over the next week or so, if I enter a trade it will be of a very small size to allow for volatility. Capital preservation is key to Fx trading success do not blow your account in times like these.<b><span style="text-decoration: underline;"> </span></b>

&nbsp;

<b><span style="text-decoration: underline;">2. EXISTING LIVE TRADES:</span></b>

I have none at this time.

&nbsp;

<b><span style="text-decoration: underline;">3. POTENTIAL TRADES ON MY RADAR:</span></b>

As you know, I am not a 5-minute scalper trader. I am really a swing, position trader and at the moment sitting back in $$$. I am not looking to enter trades in huge volumes as I think we are basically range trading pending a resolution to the U.S. debt crisis etc. There will be lots of continued foostering going on with movements back and forth but no real directional moves until we see a settlement.

For this reason, there is not a lot on my radar at the moment. I am basically looking to be long the USD as I feel that this is the trade to be in in the medium term.

<b>AUD/USD:</b>

I am waiting patiently for this pair to enter my sell zone of 0.9500 to 0.9550. This is the area that I believe represents good value and a great risk reward for a short trade. I am thinking that if/should we get a resolution to the U.S. debt ceiling and the government re-opens, we may get a period of USD weakness to enable this trade to be activated.

<b>NZD/USD:</b>

I think that I have tried this trade set up several times recently. I want to short at 0.8340-0.8350 back to 0.8200.

<b>EUR/USD:</b>

This pair continues to trade in a range of 1.3450 to 1.3570. I am looking to get long at support and short at resistance. It is mid-range at the moment.

<b>USD/CAD:</b>

I want to enter long at 1.0275-1.0300. We will hopefully see a pullback and this level offers a great risk reward.

&nbsp;

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

Trade carefully, if you feel that you must be in trades at the moment. Do not get suckered into trades, as there will be false breakouts and breakdowns.

&nbsp;

Good luck and take care.

Scott Pickering
The Pip Accumulator
Wednesday October 9th 2013

FOLLOW ME AT:
Twitter: @pipaccumulator

&nbsp;