Forex Weekly Report 26-04-2020

Hello comrades! Last week we simply rocked. All our trades went to the hearts of big boys and we took a lot of money from them! This week will no be different, we will take money from them again!

I have an important message for you, read it to the end. Let’s make fucking money! I know you are with me!

NZDCHF – POSSIBLE BOTTOM

We got our favorite trading signal for NZDCHF and adding to this we have Bloomberg reporting the success of New Zealand dealing with the virus and they are behind the schedule in the race to reopen the economy.  This will help their economy and currency.

Seems that analysts interviewed by Reuters think the following

“The economic data is going to be horrible. I’m betting that markets will be shocked by it, even though we know it’s coming, and that will cause risk sentiment to fall,” he said, which means selling pressure on the New Zealand dollar.”

Looking at the polls in Eikon we can see that they are really expecting it to drop, but also expecting a strong rebound. Let’s not forget that after the chair dancing of interesting rates around the world holding NZDCHF still a swap positive position. So this is one thing that is and will be on the portfolio of many money managers around the World.

From the Swiss perspective, we got the following headline this week

SWISS GOVT EXPECTS ECONOMY TO SHRINK 6.7% IN 2020 DUE TO CORONAVIRUS IMPACT, WORST SLUMP SINCE 1975

I have already mentioned here that the New Zealand economy is highly dependent on the dairy sector, NZD spot price has a close relation with Non-Fat Dry Milk. The Milk price has slumped this year and a rebound for next weeks is expected as we are betting economy reopen in New Zealand.

NZD VS Non-Fat Dry Milk

In the COT Spreadsheet, you can see how beautiful commercials are doing their job, buying all the drop, and as this happens we have a combination of events that culminated triggering the COT Index Possible Bottom.

Trading Plan

Gluing everything together we can expect that any drop in NZDCHF will meet buyers! So we are joining the Winning team and buying is our game now. Remember that holding NZDCHF is swap positive. If your broker does not pay positive for this pair, time to change broker, also if you are in the UK and want to escape strict regulation you can use a UK broker but that has an office in another country like Chile. I use City Credit Capital, from the UK, but with an office in Chile, the Switzerland of South America.

Going back to our trade we saw that fuckers analysts at Reuters polls are expecting the price to drop to 0.56 region, I think its a little too much, but at the moment we are living overreaction is the rule. Checking volumes( they are real for FX) we can see that the actual level of price is being traded a lot and 0.56 is not out of the cards.

I am taking a long position in two cases.

1. Price going above blue rectangle
2. Price going inside the purple rectangle

Alright!?, Next!

USDMXN – Downtrend Resumption

MXN has some exciting points I would like to discuss with you. First, markets are not interested in trade MXN. How do I know this? Gentlemen( and ladies, I hope ladies read this too) Open interest is at record lows, and this has a reason. Oil is an important export for Mexico, so the world price is a driver of the economy, and you know what is happening right now with oil. While some may say stay away, I see a great opportunity here.

Price is super attractive; we get fat and juicy swaps as Target Interest rate of Mexico is 6 beautiful percent a year. We also discussed how the World is preparing the reopening of the economy, and this will drive oil consumption again.

 Trading plan

The approach here is clear! Nobody is buying or selling MXN, yet we ain’t nobody, right? One last chart and you will see that MXN is at extreme from a lot of points of view, perspective, or whatever you want to call it. The point is we have an opportunity here and if the price gets cheaper the opportunity will improve. Just don’t be stupid with leverage and things will be ok! Have you heard about Mr. Yen? No? Serious?! He is the man that beat the market every day and also beat cancer some time ago, you if you don’t follow him do it now! Did? OK!

Once he said me the max leverage one should use is 6x. If you never made any kind of coding or backtesting taking this as a true and use it. Opportunity, just don’t miss it thinking you can get rich overnight.

I am going to do the simplest thing in the World, wait! While trading is also a binary and simple stuff for the outcome: It goes up or down.

In this case, with all the information we have, I am going to short USDMXN. If this MF(mother fucker) goes in the upper purple rectangle I will short it! If the asshole goes below that blue rectangle I will also short it, but with more intensity!

That it!

Just it, Leo?

Yes! You don’t need to trade 1000 things to make money. This is one of the reasons you lose money, trying the be lord of the market without knowing what swap is, and other things too.

Friends, and also some haters too, this an excellent report and I know most of you made money from it. The reports get more than 3000 visits and click every week and yet, 99.99% of you don’t even say thank you. This is not right!

The fucking idea of retail trading is us guys taking money from big boys, not from each other; this is the main reason this shit is free. So the opportunity to hit the system and help me help you keep beating markets will be presented now.

I don’t want your money, but you can use your strength and trades to give power to me to improve this report and bring it to the next level, how?

If you trade with pepperstone or IcMarkets, change your account to my IB! For you, it changes nothing! But they will send me part of your fees, and this will help me buy more tools and improve the reports, and help you! Gain gain!

How can you do that? Follow me it’s pretty amazing simple!

For Pepperstone:

Send an email to support@pepperstone.com

Subject: IB Change

Body:

I change to change my account to Leonardo Assis Hermoso Garcia IB 3184.

Best Regards

Your Name Here

For ICmarkets:

Send an email to support@icmarkets.com

Subject: IB Change

Body:

I change to change my account to Leonardo Assis Hermoso Garcia IB 44689.

Best Regards

Your Name Here

Now if you don’t have an account I strongly recommend you open with CCC, and it’s not because I have a deal with them, its because I know the guys in person, I know how they operate and also because there if you want, I can trade for you. I have a pamm account there.

They have Chile and the UK, its the same thing, the difference in the UK you have thousands of regulations. Its the same broker! Open your account here!

Let’s beat this market together! This was supposed to be a secret, but I am coding a tool that is similar to eikon, just not to say I am copying it, and it will be free. So go there change your account as I told and let’s make this thing happen!

Best regards

Leo Hermoso