Forex Oddball Trade Ideas For Feb 12 (USDCNH, USDNOK, USDSGD)

Cory Mitchell, CMT

*USDSGD Note: In the video, I mention that the recent big rise was due to the coronavirus and the Singapore bank indicating they may ease interest rates. That is not correct. I meant to say Singapore's central bank may ease its currency band. For how this works, you can read more here.

The trades below all deal with breakouts of some sort. Whenever dealing with breakouts we need to be aware of false breakouts. They can be annoying, but they are also a great source of information and profits!


China has a 4.15% interest rate, while the USD has a 1.75% rate. Therefore, being long the USDCNH will result in paying interest each night, while being short will result in receiving interest each night.

Watch the triangle, this one could go either way.


Norway has a 1.5% interest rate, very close to the USD 1.75%. A long USDNOK may result in a tiny bit of interest being received each night, but this will vary by broker. Being short will result in paying some interest each night.


The Monetary Authority of Singapore (MAS) manages its currency differently than other central banks. It attempts to keep it within a band against a basket of currencies.  Before trading this pair, do some research and understand how this works, so you can understand the risks. Otherwise, simply ignore this pair. There are plenty of opportunities elsewhere.

Singapore has an interest rate of 1.36%, but this rate changes monthly. So right now, being long USDSGD means receiving a bit of interest each night. Being short means paying the interest rate differential.

Check out Three Effective Position Sizing Methods for Trading Forex.

By Cory Mitchell, CMT. Join me on Twitter @corymitc.

Disclaimer: Nothing in this article is personal investment advice, or advice to buy or sell anything. Trading is risky and can result in substantial losses, even more than deposited if using leverage.


Forex Trade Ideas