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 Sunday the
30th to Monday the 31st of May 2010 and the week and the month ahead.
The EUR has turned around from support and has not breached the low
of 12144 although we came within ticks away. Currently the EUR/USD is
hovering at 123. If this is a significant appreciation from support
then we would expect 124 to be tackled soon and if not, then moving
lower again would be likely. With support now at 121.7 and we would
look with a long bias on any dips as it looks like a bottom making
process is occurring. For now the EUR/USD must stabilize and advance
from support. The double bottom chart looks to have formed. 124.0,
124.2 and 124.45 are ALL critical numbers that need to be taken out
otherwise the Euro is in danger of forming a technical pattern known
as a continuation 'head & shoulders' in which if the mentioned levels
are not taken out soon then the EUR/USD will get back to the recent
lows as a bare minimum with a possible snap-back also likely. The
bottom line, the EUR/USD is trying to turn short term positive but
the next few sessions will need to be seen to distinguish where we
are heading as it is still too early to speculate for the moment. We
are still in surprise news events environment; as reversals in key
currencies are forming so chop is expected. This can be seen here in
the EUR chart here
http://www.stockcharts.com/charts/gallery.html?$XEU
bounce and fail, bounce and chop...and another short term bottom.
Still in a strong bearish trend that is now oversold on the weekly
and with stop orders taken-out around 1.23 in the EUR/USD and an
expected wash-out move to 1.217 occurred (the 50% Fibonacci
retracement of the Euro Index prior 8-year rally). For the upcoming
month, a bounce is still expected to the 130.0 level. Longer term
(several months) a target of 112.1 is expected, coinciding with the
0.618 retracement of the Euro Index prior 8-year rally and a
declining trendline acting as support around that level. But for now
the EUR looks to be in bounce/retracement mode. Place your bets
accordingly. All charts courtesy of www.stockcharts.com
<http://www.stockcharts.com/>
.
We tend to see the most price appreciation during the final stages
of a trend and we could have seen that on the US Dollar over the past
6 weeks. It looks as though the dollar could have put in a double top.
But we will not know it's a top until there is a clear trend reversal
which in any case it could be weeks before that type of price action
can unfold. The USDX is at 86.6 and looks to be in chop mode to give
volatility another boost. The USDX daily and weekly chart seen here
http://www.stockcharts.com/charts/gallery.html?$USD
. The JPY looked poised to continue its roll over but is all over
the map and will only be used as a trading proxy with no bias given
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
powered ahead and gave a close above 145.0 and by doing so, broke
out from the tight range we had been in for the past 10 days only to
come back and test the breakout point. The very short term trend is
now trying to turn upwards and we will be bias long. Be aware, all is
not yet conquered - for the GBP to confirm its break away we need
confirmation from the market in which it must hold 144.5 today and
recapture 145.0 with a daily close. The GBP has broken out of the
tight range but it does not mean it will be flying straight up for
the moment as the GBP/USD must break above 146.0 and more importantly
146.5 - the level from where this 'U.K. election' decline started.
There are no real reports of significance to trade through today. In
terms of the USDX and EUR pairs, we will mostly play retracements and
continuations.
*The swing trade for todays Asian-London session is to BUY the
GBP/USD @ 1.4440 with a STOP @ 1.4410 and a TARGET @ 1.4550.*
* *
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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