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
2nd to Thursday the 3rd of June 2010.
Currently the EUR/USD is hovering at 122.9. 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 121.2 and we would look with a long bias on any dips as it looks
like a bottom making process is occurring but if these lower levels
keep being tested will be prepared to go short to 115..then 112. 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. 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?$XEU
bounce and fail, bounce and chop...and another short term bottom.
Still in a strong bearish trend that is now oversold on the weekly
and with stop orders taken-out around 1.23 in the EUR/USD and an
expected wash-out move to 1.217 occurred (the 50% Fibonacci
retracement of the Euro Index prior 8-year rally). For the upcoming
month, a bounce is still expected to the 130.0 level. Longer term
(several months) a target of 112.1 is expected, coinciding with the
0.618 retracement of the Euro Index prior 8-year rally and a
declining trendline acting as support around that level. But for now
the EUR looks to be in bounce/retracement mode. Place your bets
accordingly. All charts courtesy of www.stockcharts.com
<http://www.stockcharts.com/>
.
We tend to see the most price appreciation during the final stages
of a trend and we could have seen that on the US Dollar over the past
6 weeks. It looks as though the dollar could have put in a double top.
But we will not know it's a top until there is a clear trend reversal
which in any case it could be weeks before that type of price action
can unfold. The USDX is at 86.5 and looks to be in consolidating
before another big move to give volatility another boost. The USDX
daily and weekly chart seen here
http://www.stockcharts.com/charts/gallery.html?$USD
. The JPY looked poised to bounce here but collapsed on the Prime
minister resignation and is still 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 - the GBP to confirms its break away with the
recapture of 145.0 with a daily close and more importantly, the GBP
has broken out of the tight range flying straight up for the moment
as the GBP/USD broke above 1.460 and more importantly 1.465 - the
level from where this 'U.K. election' decline started, and these are
no areas of support.
There are some reports of minor 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
EUR/USD in the 1.225 area with a STOP @ 1.2220 and a TARGET @ 1.2350
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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