GreenForexTrading.com
ForeX-tra Gr��n
Hello Everyone,
In this email I am going to give you my view on the market for the
Asian/London sessions in the market for today, spanning Wednesday the
12th to Thursday the 13th of May 2010.
Apparently still no one is buying it...the bailout of Greece debt,
the containment of the contagion from Greece to Portugal and Spain
and the happy days are here again crowd as the EU is saved . This
can be seen in the EUR chart here
http://www.stockcharts.com/charts/gallery.html?$XEU
bounce and fail, bounce and another collapse. Still in a strong
bearish trend that is not oversold on the weekly and with stop orders
around 1.23 in the EUR/USD, I would not be surprised to see a push
down there before any meaningful retracement is seen. With recent
yearly bottoms look to be in play in spite of overwhelming bearish
sentiment on the EUR now, as a possible contrarian retracement plays
a strong confluence of resistance @ 1.297-1.302 range and
pivot/breakdown @ 1.305 should be made aware for any with a buy bias
and new lows in the 1.255 -1.260 range are just a chip shot away for
the sell bias. We are aware of intervention as clearly stated here:
http://gata.org/node/8624
with fresh printed (or created out of thin air in a computer)
currency to play with. The EUR looks to need one more exhaustion push
before staging a meaningful retrace rally and while currency
manipulation will be expected to prevent new lows, it is a French and
German bank holiday today and coordinated intervention is not expected
and so we will cautiously play the continuing collapse. Cautious, also
because negative USD debt data is out...so sentiment is turning. All
charts courtesy of www.stockcharts.com <http://www.stockcharts.com/>
.
We are still in a surprise news events environment and being on the
right side of a trade is as important as ever as well as to avoid the
chop, i.e., trades that can be account killers. The USDX has closed
above 84.0 to give it another leg up on the charts and make quick
work to the 84-85 range. The USDX daily and weekly chart here
http://www.stockcharts.com/charts/gallery.html?$USD
The JPY looked poised to continue its roll over but bounced hard at
the lower end of its range, as seen on the chart given here
http://www.stockcharts.com/charts/gallery.html?$XJY
. The GBP as seen here,
http://www.stockcharts.com/charts/gallery.html?$XBP
looks poised to go either way. Note: since we seem to be at some
major inflection point in many pairs, our bias is still neutral and
would expect to see some sideways chop, and maintaining the recent
key lows in the main pairs we trade is key. Either way, it should be
a volatile week with opportunities that we hope to take advantage of
in the Live Trading Room as events become clearer.
There are no reports to trade through today. Now with the picture
still somewhat hazy in terms of the USDX we will mostly play
retracements.
The Monster trade. With the AUD/USD now getting wacked around @
0.899 for most are stopped out and even with a violent bounce the
overall trend and even with recent dollar strength remains in-tact on
the weekly, while short term daily is now neutral, and we still want
to be on the buy side, but being cautious on buying on weakness and
sell on strength should continue to be the routine on this pair for
the next several weeks. Any additional dollar weakness should put
this trade on steroids, but see that as no going a little longer than
the original time frame. Remember the USDX bear market rally continues
and my 83-84 target area has been reached but I see no top of any kind
other than some serious profit-taking somewhere in the not-too-distant
future if the upside is to be limited to the 83-84 area. This
so-called US economic rebound/ flight to safety should underpin the
dollar for the foreseeable future, but this bear market rally is just
that: a countertrend rally within a long-term secular bear market. The
Dollar is winning the which currency stinks the least race for
today. Action in the dollar suggests that it may be forming a very
short term top; however more churning is possible with a slight
upward bias in this area continuing its rally from early December
through now. The AUD/USD, as seen here
http://www.stockcharts.com/charts/gallery.html?$XAD
has strong support/resistance @ round numbers 0.885, 0.890, 0.900,
0.910, 0.915, 0.920 and 0.925 ranges. I still recommend scaled in
BUYS (0.1 contract at a time) on ANY weakness now in the AUD/USD in
the 0.892-0.895 area or better with looser stops than usual, around
0.890 (so explains the very small position size). A trade down to
0.885 is still possible to complete a Head and Shoulder bottom
continuation pattern...so caution is advised, but for risk takers
this would be a good entry with a stop according to your position
size. Again, NOTE: All position trade stops are HARD stops, NOT
mental stops. Remember, hard stops for overnight positions, mental
stops for day trades.
*The swing trade for todays Asian-London session is to SELL the
EUR/USD in the 1.2650 area with a STOP @ 1.2664 and a TARGET of
1.2550 for 100 PIPS.*
* *
That's it for today. Remember that I trade in the Live Forex Trading
Room between 1am-6am Eastern Time. I will be hosting my regular 3-4
hour session and assessing and exploiting PIP opportunities as they
arise.
Enjoy trading and good luck everyone!
*Trade with Mr. GREEN for $39$ for a 1 week trial.*
* *
*Trades are issued in real time, including exact entries, exits and
detailed explanations. The service costs $99 per month. So go to
GreenForexTrading.com and take advantage of this special offer.*
*Mr. Green*
* *
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