Good Day,

I had a bad day trading yesterday; my thought process on a different stance from RBNZ Wheeler on issues regarding the economy never materialized. I moved my stop just before the news, I read a piece that looked to be very knowledgeable on what Wheeler was going to say, and I nearly took my trade off the table....hindsight what a beautiful thing.

Moving on.......

<span style="text-decoration: underline;"><strong>MARKET OVERVIEW:</strong></span>

Futures seem to be consolidating yesterdays losses, GOLD is marginally up and CRUDE concerns me from the USD/CAD long trade, That I have live at the moment plus from an inflation perspective. A little hint of inflation into the U.S. economy will keep Commodity currencies supported and my FUNDAMENTAL OUTLOOK will start to be revised.

A crude oil rally will cause waves on consumer spending as it is really a tax hike and it will affect consumer confidence. This does immediately hit outlooks and we have to watch this closely.

Additionally, now we have a divergence....EUR, GBP, CHF and SEK are all performing opposite from CAD, AUD and NZD. USD is strong against non-commodity currencies.

An hour or so ago, at the request of Roger from the UK,  I tweeted up to date pressure charts positions on currencies where the short, medium and long-term trends were aligned. Firstly, there were so many in the same direction, but secondly, the divergence was 100% clear for all to see.

<span style="text-decoration: underline;"><strong>TRADES UPDATE:</strong></span>

My live trades are:

GBP/NZD: Almost back to square one and hedged again.....

GBP/USD: short...happy about this one, let's hope it's not a false breakout of trend lines on say the 60M and 240M charts.

USD/CAD: long...not so happy about this one at the moment. I may chop this one later today based on CRUDE prices.

<span style="text-decoration: underline;"><strong>TRADE OPPORTUNITIES:</strong></span>

Looking to short the NZD and AUD from higher levels.

AUD/NZD took a huge hit yesterday and looks hugely oversold. Looking to get long on the bounce.

The EUR short looks a great trade as it is not bouncing and EUR crosses are getting clobbered.....EUR/AUD, EUR/CAD, EUR/GBP, EUR/NZD, just be careful around 1.3500 in case we get a bounce.

Limit orders with brokers are USD/CHF, EUR/USD and EUR/GBP.....I have not cancelled these but the two EUR related look impossible at the moment, I think that there is more chance with the Lottery!!

I will tweet any set-ups that I get involved with.

Take care,

Scott