Risk Off trades kick in !!

<div><div>Hi Traders,</div><div>I believe it has started !! RISK OFF – run for your lives. In my recent talks in Singapore, I pointed out the exponential rise of the DowJones Index. What usually comes after an exponential rise ? A sharp drop, which we saw happen last week.</div><img src="http://static.wixstatic.com/media/11e264_e996b0e67257433f86f3fb06a3e0e02e~mv2.jpg" /><div>The risk-off scenario is when the market avoids taking risk. Stock markets tumble and from the Forex trading community will naturally see a sell off in the commodity currencies. Similar tumbles seen on the AUDUSD.</div><img src="http://static.wixstatic.com/media/11e264_05cf943e71eb4a57b308a0823b94c738~mv2.jpg" /><div>In brief, this is what happens in the risk-off scenario. Market avoids risk – sell down in stocks to lock in profits and to reduce risk – sell off in the commodities currency because they are naturally related to growth in the global economy and considered high risk currencies – market buys JPY (commonly used as the funding currency) to repay their loans. In another words, sell AUD, NZD, CAD and buy JPY, USD</div><div>Moving ahead next week, I would be looking for the risk-off trades to continue. </div><div>On a separate note, analysing the non USD related pair. I see a nice Gartley forming on the EURGBP. The PRZ is also at the Daily Trend Line resistance which gives us a better confluence of potential sellers there.</div><img src="http://static.wixstatic.com/media/11e264_fa042f1d3ad140bd8691859e1f0990eb~mv2.jpg" /><div>The momentum up is strong, can potentially look for a long all the way up to the Gartley PRZ.</div><div>Trade well and trade safe everyone.</div><div>Announcement:</div><div>I am holding a Harmonic Pattern Sharing Session this coming Thursday (8th Feb) – 7pm. I will also share the amazing trades that happened these past months. The whole focus of this session is to open your eyes to Harmonic Pattern Trading.</div><div><a href="https://www.eventbrite.sg/e/introduction-to-harmonic-patterns-trading-tickets-42489326720">CLICK HERE to RSVP (8th Feb 7pm)</a></div><div>Hope to see you there. Invite your friends along too.</div></div>