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 Tuesday the 31st of August to Wednesday the 1st of September 2010.
We are still looking for short term continuation buying in the USD into the 84-85 area but not really sure we will get there as the 83.4 area looks to have stopped most advances.We will look to scale in positions for another reversal heading into September.The key support/resistance and weekly retrace levels in the USDX are 83.38, 84.4 and 85.4 (38.2%, 50% and 61.8% Fibonacci retraces of the prior 88.71-80.08 decline), and the 83.4resistance level is providing strong resistance but the 50-day moving average is now support and might help the advance in the short term.The start of another leg-up in the USD looks possible taking it through the 83.4 as consolidations (the 82-83 range in the USDX) often appear in the middle of the move where a quick move to the 84-85 area would be expected, but as said before now looks in doubt but must be ready to play both eventualities.In addition, the USDX looks to be rolling over from the 83.4 area.This can be seen in the USD daily and weekly chart here http://www.stockcharts.com/charts/gallery.html?$USD. Place your trades accordingly, but scalps are possible here until the market will show its hand.All charts courtesy of www.stockcharts.com.
The advancing action in the USD can also be confirmed against the declining action in the EUR as mirror images of each other and the EUR, after breaking through and retesting the 50-day moving average looks poised to start another leg down, to the 124 to 126 area.I expect this decline to be shallow and brief.The EUR chart can be seenherehttp://www.stockcharts.com/charts/gallery.html?$XEU.It is interesting to note on a relative strength basis that the EUR advance has occurred mostly on a decline of the dollar as a weighting of currencies is examined and can be shown by comparing the fact that the EUR did not reach its 200-day M.A. before reversing while the USD had tested its 200-day moving average.The same can be said for the 50-day M.A. tests. This expressed weakness in the EUR will be the basis for another “Monster Trade” initiation in the future.
The JPY broke above the 200-day moving average; after bouncing hard at the lower 50-day moving average and went ballistic for a while being the anti-dollar and briefly poked into what now looks like a spike blow-off top and subsequent reversal and is now resting on the lower rising trend-line (not shown here). While a long bias exists as the 50-day/200-day M.A. are now aligned and are now confirming an uptrend, a break of the daily rising trend-line could lead to a fast down move but was negated by recent BOJ actions.Traders should be willing to look at both sides of this currency as seen on the chart given herehttp://www.stockcharts.com/charts/gallery.html?$XJY.
The GBP is falling off a cliff, as seen here,http://www.stockcharts.com/charts/gallery.html?$XBP, and would be expected to bounce here if not for the expected strength of the USD and weakness of the EUR.The fundamental outlook still shows more gain for this currency. But with current USD strength, timing becomes important and remains probably the most resilient currency against USD, although a move to the 153 area is close , the 151 area is possible now and could be seen in the short term.
There are some reports that I note this week that could factor in some trading sessions going forward.They are:
2. Wed. Sept. 1, 2010 (4:30am EST) UK Manufacturing PMI. 3. Thurs. Sept. 2, 2010 (3:15am EST) CHF Retail Sales and (7:45am EST) EU Interest Rate Decision.
4. Fri. Sept. 3, 2010 (4:30am EST) UK Services PMI and (8:30am) US Non-Farm Employment and Unemployment Rate.
Traders should be aware of key daily and weekly retracement levels, especially given the thin summer trade
The “Monster Trade” initiation.Waiting for the USD to top out as we will gauge sentiment as the USD flirts with recent retrace and key levels so look for this in upcoming newsletters of what we will scale into.Live Trading Room members will get first crack at these entries with more precise defined levels to minimize risk.
The swing trade for today’s Asian-London-U.S. session is to SELL the EUR/USD in the 1.2727 area with a STOP @ 1.2754 and a TARGET of 1.2664 for 60 PIPS with a possible break to 1.2626 for 100 PIPS.Note: We are still in a thin summer trading environment, so best keep position sizes light and allow for chop.
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 $49$ for a 1 week trial.
For those who join with this special, the service costs only $179$/month after the trial expires, unless you cancel the membership.Trades are issued in real time, including exact entries, exits and detailed explanations. So go to GreenForexTrading.com now and take advantage of this offer.
Mr. Green
Risk Warning!Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. All information posted on this website is of our opinion and the opinion of our visitors, and may not reflect current situations and occurrences. Please, use your own good judgment and seek advice from a qualified consultant, before believing and accepting and acting upon any information posted here or on this website.
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 29th to Monday the 30th of August 2010 and the week.
We are still looking for short term continuation buying in the USD into the 84-85 area but not really sure we will get there as the 83.4 area looks to have stopped most advances.We will look to scale in positions for another reversal heading into September.The key support/resistance and weekly retrace levels in the USDX are 83.38, 84.4 and 85.4 (38.2%, 50% and 61.8% Fibonacci retraces of the prior 88.71-80.08 decline), and the 83.4resistance level is providing strong resistance coinciding with the 50-day moving average.The start of another leg-up in the USD looks possible taking it through the 83.4 as consolidations (the 82-83 range in the USDX) often appear in the middle of the move where a quick move to the 84-85 area would be expected, but as said before now looks in doubt but must be ready to play both eventualities.In addition, the USDX looks to be rolling over from the 83.4 area.This can be seen in the USD daily and weekly chart here http://www.stockcharts.com/charts/gallery.html?$USD. Place your trades accordingly, but scalps are possible here until the market will show its hand.All charts courtesy of www.stockcharts.com.
The advancing action in the USD can also be confirmed against the declining action in the EUR as mirror images of each other and the EUR, after breaking through and retesting the 50-day moving average looks poised to start another leg down, to the 124 to 126 area.I expect this decline to be shallow and brief.The EUR chart can be seenherehttp://www.stockcharts.com/charts/gallery.html?$XEU.It is interesting to note on a relative strength basis that the EUR advance has occurred mostly on a decline of the dollar as a weighting of currencies is examined and can be shown by comparing the fact that the EUR did not reach its 200-day M.A. before reversing while the USD had tested its 200-day moving average.The same can be said for the 50-day M.A. tests. This expressed weakness in the EUR will be the basis for another “Monster Trade” initiation in the future.
The JPY broke above the 200-day moving average; after bouncing hard at the lower 50-day moving average and went ballistic for a while being the anti-dollar and briefly poked into what now looks like a spike blow-off top and subsequent reversal and is now resting on the lower rising trend-line (not shown here). While a long bias exists as the 50-day/200-day M.A. are now aligned and are now confirming an uptrend, a break of the daily rising trend-line could lead to a fast down move.Traders should be willing to look at both sides of this currency as seen on the chart given herehttp://www.stockcharts.com/charts/gallery.html?$XJY.
The GBP is still hanging on a cliff, as seen here,http://www.stockcharts.com/charts/gallery.html?$XBP, and looks to have found support at the confluence of the 50 and 200-day Moving Averages, and would be expected to bounce here if not for the expected strength of the USD and weakness of the EUR.The fundamental outlook still shows more gain for this currency. But with current USD strength, timing becomes important and remains probably the most resilient currency against USD, although a move to the 153 area could still be seen in the short term.
There are some reports that I note this week that could factor in some trading sessions going forward.They are:
1. Tues. Aug. 31, 2010 (8:30am EST) CAD GDP. 2. Wed. Sept. 1, 2010 (4:30am EST) UK Manufacturing PMI. 3. Thurs. Aug. 26, 2010 (3:15am EST) CHF Retail Sales and (7:45am EST) EU Interest Rate Decision.
4. Fri. Aug. 27, 2010 (4:30am EST) UK Services PMI and (8:30am) US Non-Farm Employment and Unemployment Rate.
Traders should be aware of key daily and weekly retracement levels, especially given the thin summer trade
The “Monster Trade” initiation.Waiting for the USD to top out as we will gauge sentiment as the USD flirts with recent retrace and key levels so look for this in upcoming newsletters of what we will scale into.Live Trading Room members will get first crack at these entries with more precise defined levels to minimize risk.
The swing trade for today’s Asian-London-U.S. session is to SELL the EUR/USD in the 1.277-1.278 area with a STOP @ 1.2808 and a TARGET of 1.2721 for 60 PIPS with a possible break to 1.2684 for 90 PIPS.Note: We are still in a thin summer trading environment, so best keep position sizes light and allow for chop.
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 $49$ for a 1 week trial.
For those who join with this special, the service costs only $179$/month after the trial expires, unless you cancel the membership.Trades are issued in real time, including exact entries, exits and detailed explanations. So go to GreenForexTrading.com now and take advantage of this offer.
Mr. Green
Risk Warning!Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Past performance is not indicative of future results. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts. All information posted on this website is of our opinion and the opinion of our visitors, and may not reflect current situations and occurrences. Please, use your own good judgment and seek advice from a qualified consultant, before believing and accepting and acting upon any information posted here or on this website.
