With a big sell-off in equities yesterday, and the US Treasuries hitting a record low, risk aversion is definitely on the rise. This is something we've been discussing over the past few weeks and much more recently we had a short EUR/JPY trade that, due to timing, only earned us 27 pips. Clearly our original analysis was correct and we're now in focusing on the next opportunity. How much longer will risk aversion go on for? With the DOW now trading below the 61.8% corrective retracement, it's possible this could be the beginning of a much bigger move lower. Keep your money safe and don't dare go against the trend! When I first started trading forex, there were many times when I said to myself that the market couldn't possibly go any lower... and guess what, it did! Watch for reversals, but be mindful that they're more likely to be retracements.

Don't forget, we will be hosting a Live! Trading session today for FREE - 0600 GMT. You may access the trading room by clicking on the orange colored text that says Free Session - along with the password FREESESSION to gain authorized entry. Premium members may access the direct link in the Members Downloads section. The room will be open 20 minutes prior to trading. This is limited to the first 100 people that enter the room.

We think there will be a good opportunity for a continuation in the sell-off and we'll be looking at the GBP/USD and the GBP/JPY pairs.

If you'd like a more detailed analysis with potential trade opportunities during our live trading session, please join us in the member's area.