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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 Thursday the 12th to Friday the 13th of August 2010.
So now we have our confirmation of a reversal in the USD that would indicate a more intermediate term bottoming has formed and now look for another short term reversal before some more short term upside takes place before the next/final leg down continues. USD short term moves are now expected to the upside with 83.4 being the next key resistance, coinciding with the 38.2% retrace of the last 88.71 to 80.08 multi-week decline. This can be seen in the USD daily and weekly chart here http://www.stockcharts.com/charts/gallery.html?$USD. Place your trades accordingly. All charts courtesy of www.stockcharts.com.
The EUR/USD reached the key 1.278 level before arresting its decline. The declining action in the USD can also be confirmed against the advancing action in the EUR as mirror images of each other and the EUR chart can be seen here http://www.stockcharts.com/charts/gallery.html?$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 still had some way to go before reaching its 200-day M.A. while the USD has already broken through its 200-day moving average before reversing. I expect that the EUR now will look to be range-bound between the 50 and 200-day moving averages and the key 1.278 level for the EUR/USD for a few days. This expressed weakness in the EUR was to be the basis for another “Monster Trade” initiation in the future, but with the degree of the move that just occurred this trade will be scratched as no opportunity for scaling-in was allowed time wise except for maybe some lucky subscribers who heeded the call last week in the Live Forex Trading Room.
The JPY broke above the 200-day moving average; after bouncing hard at the lower 50-day moving average and is still being the anti-dollar by continuing to the upside. This trade is still hard to catch as no pullbacks have afforded us better entries and is the main reason this pair has been avoided as of late as possible trades in the Live Trading Room, as seen on the chart given here http://www.stockcharts.com/charts/gallery.html?$XJY.
GBP as seen here, http://www.stockcharts.com/charts/gallery.html?$XBP, has now found support at the 200-day moving averages. The GBP did drop, as part of this major USD reversal, and as expected has shown greater relative strength as compared to the EUR but it will probably be the currency of choice when the USD reverses in the future to its primary downtrend.
The U.S. Core CPI is due out at 8:30am EST and with many pairs perched at key levels, prudence is suggested if you are to trade through this report. Chop is always possible and scalp trades might be preferred as sentiment/reaction is gauged. Traders should be aware of key daily and weekly retracement levels, especially given the thin summer trade.
The swing trade for today’s Asian-London is to SELL the EUR/USD in the 1.2875 area with a STOP @ 1.2905 and a TARGET of 1.2788 for 90 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!
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