The Weekly Update: Looking into CADJPY and Natural Gas

In our last week’s update we were stopped out on a couple of our trades but were able to compensate via EURNZD long trade and the indices that began turning bearish.

The market is likely to react to weekend news as the  EU  pushes economic sanctions against Russia as we have anticipated.  The US monetary policy decision on Wednesday is likely to naturalize some of the impact as traders are expected to cut their exposure ahead of the key economic data.

CADJPY Technical Analysis

The market fundamentals suggest risk aversion will dominate, which often interprets into moderate gains in the Japanese yen (JPY). However, our technical models state otherwise. We see multiple entries in shorting the Japanese yen against multiple currencies.  To ensure a healthy risk management is maintained we are focusing on CADJPY.

CADJPY Daily Chart

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CADJPY Daily Chart

CADJPY Technical Analysis 28/07/14

We note the potential for reversed Head-And-Shoulders (H&S) along with a firm support level at 94.12.  We see the recent weakness in CADJPY for exercising dip-buying strategies whilst setting the protective stop loss order at 93.82. It will be interesting week so we do not expect hold the trade for a substantial period of time. Our bullish target for the FX cross is 94.97.

Natural Gas Technical Analysis

Morning Dodji Star is a classic Japanese reversal pattern that was painted in Natural Gas daily chart. We are fully aware the upcoming economic sanctions on Russia may yield a Russian threat to its exported Natural Gas, which will in turn provide the fundamental trigger for moderate gains in the commodity.

Natural Gas Daily Chart

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Natural Gas Daily Chart

Natural Gas Trading Strategy 28/07/14

Our protective stop is layered at 3.63, targeting 4.17. We ensure to maintain a decent Risk Ratio (RR) as we have been doing for all our issued trades.

EURSGD Technical Analysis

You may find it surprising but we are uncertain whether the Euro will continue its bearish path in the Forex market. We have failed in finding an entry in EURUSD but EURSGD has attracted our attention.

EURSGD Daily Chart

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EURSGD Daily Chart

EURSGD Technical Strategy 28/07/14

Bullish engulfing on the daily  chart accompanied with oversold technical indicators such as Stochastic Slow is sufficient for our bullish trading strategy for the FX cross. We have used multiple time frames for layering the protective stop loss order and define our take profit. Stop layered at 1.6599, targeting 1.6885.

Key Economic Figure

Aside the Fed monetary policy the US Non-Farm Payrolls on Friday is expected to be the key figure for this week.

Please note we will update the trades at the bottom of this page.  From today, to be notified when an update is released please follow us on Twitter.

All our trades are published in ‘Trades Performance.

28/07/14 UPDATE: Natural gas is trading at 3.82 at the time of this writing,  as expected. We are closing 10% of the long trade at market price.

29/07/14 UPDATE: CADJPY long trade is in a fair profit, the price at the time of this writing is 94.33. We are shifting the protective stop to the entry and close 20% of the trade at market price.

29/07/14 UPDATE II: CADJPY was stopped at the entry but we are able to liquidate 20% of the trade with a minor profit. Natural gas and EURSGD long trades are holding at the time of this writing.

31/07/14 UPDATE: EURSGD is in a fair profit of +30 pips at the time of this writing (current price: 1.6702). We are closing 10% of the open trade. Natural Gas is trading at 3.85 at the time of this writing. We are shifting the protective stop to the entry due to the risk of a bearish flag and liquidate another 10% of the trade.

01/08/14 UPDATE: EURSGD is trading at 1.6714 at the time of this writing following the Non-Farm Payrolls. we are closing 15% of the long trade at market price.

06/08/14 UPDATE:  EUSGD long trade is holding, current price 1.6695. We are concerned by the sluggish recovery and react by closing 30% of the trade at market price and shift the protective stop to the entry. Natural Gas is currently trading at 3.93 at the time of this writing following Putin’s actions in reaction to the EU economic sanctions. We expect further gains in the commodity but choose to realize 25% of the long trade at market price.

13/08/14 UPDATE: Natural gas is trading at 3.93 at the time of this writing after trading above 4.00. We are closing 30% of the trade at market price and shift our protective stop to 3.84. EURSGD long trade is holding as our protective stop remains unscathed, trading at 1.6699 at the time of this writing. We are closing 25% of the trade at market price.

15/08/14 UPDATE: We were stopped out our long trade in Natural Gas after realizing profits and shifting the protective stop above the entry. We are glad to say we have booked a decent profit from the long trade. EURSGD long trade was also stopped out at the entry but we ended the trade with a minor profit due to partials realizations.

Last Updated on August 31, 2018