Generally I don’t speak about specific currency plays. My plate is full enough trading the stock indexes, gold, crude and corn wheat and beans.
However, I do look at the currencies, specifically the dollar, the euro and the yen.
I like to have a general feel for what is going on there, but I generally don’t put direct positions on.
Today is different.
DX, US $ index, is hovering at a trend line at 76.78. It’s not a perfect trend line. It was violated On 11/5 with an intra day panic trade below, however it was fleeting, and DX settled well above that trend line support that day. So the first caveat, 1) its not a perfect trend line. 2) Its a good enough line, however that I want to buy here.
The stop loss exit will be near or around the 75.00 level. The upside target is 81.50. A 5:1 risk. I will risk one handle to potentially make 5.
That is all.
Good Trading
CER
