Good morning,

A very subdued opening in Asia and Europe was not much better. No major news driving the FX market this week, so we will be relying quite heavily on the equities markets.

LIVE TRADES are as follows: -

<strong>USD/CAD - long</strong>
<strong>NZD/USD - short</strong>
<strong>USD/CHF - long</strong>
<strong>CAD/CHF - long</strong>
<strong>AUD/CHF - long </strong>
<strong>USD/SEK - long
GBP/NZD - long</strong>

Limit orders outstanding AUD/USD short. I have amended the entry level slightly with my broker this morning. Really post off that it did not trigger last night.
LIMIT ORDER ENTRY 0.9290
STOP LOSS 0.9340
LIMIT / TARGET 0.8500
I may have to review this again as the day progresses.

Should the AUD fall aggressively I will be getting long EUR/AUD and GBP/AUD.

ADDITIONAL TRADE SET UP (with my USD majors broker): -

EUR/USD
Short
LIMIT ENTRY: 1.3750
Stop Loss 1.3830
Limit 1.3450

If any of you are not yet long the USD/CHF, should it fall to 0.8850 trend line support this would be an excellent place to consider a long trade. Obviously, movements in this pair are determined by the price action in the EUR/USD.

My overview thoughts of the market are solidifying from my thoughts expressed in recent blogs.
<ol>
	<li>Equities are trading very heavy at the moment and are week.</li>
	<li>The 5 year S&amp;P 127.6% extension is creating huge issues and therefore  hence the volatility.</li>
	<li>I still think a correction / pullback has  S&amp;P 1600 written all over it. Hence my commodity currency thoughts with trades.</li>
	<li>The Dow Jones has been struggling with 16,500/16,550 - 4 times we have rejected at these lofty levels.</li>
	<li>The NASDAQ is under-performing. The Daily Chart Trend line support is broken. We are pulling back.</li>
	<li>Momentum stocks are being actively sold.</li>
	<li>Bio-Tech and Tech stocks are being hit first, which is consistent with twitchiness in the market as far as I am concerned.</li>
	<li>Dow Transports had a great opportunity to clip the GOLDEN FIB extension of 161.8% on Friday last week. It failed and pulled back. All time highs missed, this is very bearish.</li>
</ol>
As time goes if the above consolidates I will be adding to existing positions and adding new trades. The key for me right now is not  to get too carried away.

I am looking to my lead indicators for clues: -

AUD/USD below 0.9200 and then 0.9130.
USD/CAD above 1.1050.
NZD/USD below 0.8480.

RISK MANAGEMENT is crucial when one has a master plan coming into play. If my thoughts are confirmed I must ensure that any trades placed or added to are within my RISK MANAGEMENT guidelines. I may exit trades in favour of better risks to ensure that I trade within my TRADING PLAN guidelines.

Scott