The Straddle Trading Strategy
USDJPY – The straddle trade. We do not mention this much but sometimes you don’t know where the price might go to so you want to straddle it. Here is such a situation. If the USDJPY breaks above the line the price going higher would be likely as it breaks the resistance. If the price breaks the support according to technical analysis it is logical to short the currency pair. Here you will have to be patient and go which ever way it breaks and take your profits along the way.
GOLD – Gold is inside a trotting along channel but this might give an intra day opportunity if it breaks above the resistance level of 1173.40 and then the short intraday target would be around the 1180 area. Breaking a resistance is a sign the market has potential to go higher so this might just be an opportunity to take within the day.
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***Information contained in this news letter are gathered from third parties and should not be regarded in any way as trade advice or recommendations by CM Trading. CM Trading does not recommend or advise traders or investors in their decision making, but merely provides information from the market for its clients as additional information being made available as per the events occurring in the financial markets.
HIGH RISK WARNING:
Trading Foreign Exchange (Forex) and Contracts for Differences (CFD’s) is highly speculative, carries a high level of risk and may not be suitable for all investors. You may sustain a loss of some or all of your invested capital, therefore, you should not speculate with capital that you cannot afford to lose. You should be aware of all the risks associated with trading on margin.
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