A quieter week came to an end and PaxForex closed the week with 200 pips which brought our monthly total to above 1,200 pips with four trading days plus Friday left for the October period. We did close one of our AUDCHF long positions for a loss of 750 pips on October 21st as we continue to adjust our exposure to the Australian Dollar.
The long awaited non-farm payroll report out of the US was released on October 22nd and showed a worse than expected increase of 148,000 jobs while the unemployment rate dropped 0.1% to 7.2%. This gave investors another clue that the Federal Reserve will maintain its QE program and therefore US Dollar negative.
We did saw a minor correction in the downtrend for the USD as durable goods orders came in much stronger than expected on Friday and resulted in a relief rally for the USD which we expect will continue into next week until solid support levels are reached. GDP out of the UK came in line with expectations of an increase of 0.8% for the third-quarter and 1.5% year-on-year.
Overview of profits for the week which ended October 25th
- EURNZD: 55 pips
- EURGBP: 0 pips
- AUDCHF: 145 pips
Total profits: 200 pips
Monday, October 21st
GBPCHF Short Recommendation
We recommended a short position at 1.4625 with a take profit target of 1.4375 (GBPCHF Second Put). This currency pair corrected before our pending order was triggered, but would have been an addition to our previous short position which we took on July 31st at 1.4075. We cancelled our pending order and this currency pair carries a floating trading loss of 362 pips. This represents a decrease of 148 pips compared to last week. We will maintain our take profit target of 1.4075.
Tuesday, October 22nd
EURCAD Short Recommendation
We recommended a short position at 1.4100 with a take profit target of 1.3875 (EURCAD Double Top). This currency pair carries a floating trading loss of 328 pips and we have adjusted our take profit target to 1.4000.
Wednesday, October 23rd
EURUSD Short Recommendation
We recommended a short position at 1.3775 with a take profit target of 1.3525 (EURUSD Rising Wedge). This currency pair carries a floating trading loss of 30 pips and we will maintain our take profit target of 1.3525.
Thursday, October 24th
GBPUSD Short Recommendation
We recommended a short position at 1.6200 with a take profit target of 1.5800 (GBPUSD Second Put). This was an addition to our previous short position we took on September 9th at 1.5700. This currency pair carries a combined floating trading loss of 434 pips. This represents a decrease of 35 pips compared to last week. We will maintain our take profit target of 1.5800.
Exit from trades of previous weeks
EURNZD Long Position
We closed our EURNZD long position for a profit of 55 pips on October 22nd as our stop loss order was triggered.
EURGBP Long Hedge
We closed our EURGBP long hedge for 0 pips on October 24th as our take profit order was triggered.
AUDCHF Hedge
We closed our AUDCHF short hedge for a profit of 145 pips on October 25th as our stop loss order was triggered.
We had a total of four trading recommendations this week. Two were additions to trades of previous weeks of which one was cancelled and one was executed while we also had two new trades this week. In addition we closed three positions from previous weeks for a combined profit of 200 pips which equals our weekly total and puts us above 1,200 pips for October. We also closed one AUDCHF long position for a loss of 750 pips.
In addition to our three executed trades we also carry eight trades from previous weeks. We have two NZDUSD short positions which carry a floating trading loss of 14 pips. This represents a decrease of 454 pips compared to last week. We will maintain our take profit target of 0.8200.
We have one EURGBP short position which carries a floating trading loss of 486 pips. This represents an increase of 63 pips compared to last week. We will maintain our take profit target of 0.8300.
We have one EURAUD short position which carries a floating trading loss of 1,317 pips. This represents an increase of 260 pips compared to last week. We will maintain our take profit target of 1.4085.
We have two AUDUSD short positions which carry a floating trading loss of 564 pips. This represents a decrease of 186 pips compared to last week. We will maintain our take profit target of 0.9250.
We have two AUDNZD long positions which carry a floating trading loss of 332 pips. This represents a decrease of 380 pips compared to last week. We will maintain our take profit target of 1.1750.
We have three AUDJPY positions, two short positions and one long hedge, which carry a floating trading loss of 655 pips. This represents a decrease of 125 pips compared to last week. We will maintain our take profit target of 91.00 for our short positions and 97.30 for our long hedge.
We have two AUDCHF long positions which carry a floating trading loss of 994 pips. This represents a decrease of 465 pips compared to last week. We have adjusted our take profit target to 0.9025.
We have one AUDCAD short position which carries a floating trading loss of 246 pips. This represents an increase of 60 pips compared to last week. We have adjusted our take profit target to 0.9775.
Our floating trading loss for Tier I A stood at 358 pips. This represents an increase of 363 pips. Our floating trading loss for Tier I B stood at 246 pips. This represents an increase of 60 pips or 32.26%. Our floating trading loss for Tier II A stood at 1,296 pips. This represents a decrease of 574 pips or 30.70%. Our floating trading loss for Tier II B stood at 3,862 pips. This represents a decrease of 896 pips or 18.83%.
We hope you enjoy your weekend and that we will see you back on Monday.