$ £ € ¥
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 Monday the 27th to Tuesday the 28th of September 2010.
To quote professional trader Dan Norcini,
“What a difference a set of lackluster housing data can make! It sent the Euro soaring, the Dollar tanking towards .79 on the USDX...Keep an eye out for possible downgrades coming out of the Euro Zone. That might put a bid under the Dollar for a short time as the Euro could come under some pressure. So far the Forex markets appear to be discounting that scenario. Either that or they are so eager to sell the Dollar on the QE2 play that they no longer care. If that is true, heaven help our nation.”
ALERT!!! “Monster Trade” With the EUR/USD a deeper pullback did not happen and now a tanking dollar continues. BUYS ON HOLD...RING THE CASH REGISTER AND/OR TIGHTEN UP STOPS. Scaling In BUYS (0.1-0.2 contract at a time) on weakness in the EUR/USD in the 1.350 to 1.352 range as now a deeper pullback is expected with the first “Monster Trade” targets of 1.333 and 1.351 (close enough at 1.3498) HIT. Longer term weekly retracements in the 1.388 and now 1.442 areas can be aimed for when adding or positioning on weakness. Expect increased volatility, but positions can still be added at this point all the way down to 1.3040. NOTE: All position trade stops are HARD stops, NOT mental stops. Remember, hard stops for overnight positions, mental stops for day trades.
About Scaling In
“Scaling In” simply means breaking up the initial entry position into multiple parts and deploying them at selected intervals, instead of firing the entire trade all at once. The only reason we might resort to scaling in is if we have good reason to believe our expected support zone may have become obsolete. We usually take an initial position in our expected support zone with a fairly tight stop. Obviously if we get stopped, we were early to the trade. Early is just another word for “wrong.” If stopped, we reassess and adapt to the new market reality. If we were not early, and our position shows us that we are right, then we add to that position once the trade has managed to “prove” itself by advancing out of the support zone box, raising our trailing/trading stop in the process. The two or more portions make up a full position. When we speak of scaling, it means we have become willing to break up the trade entry into two or more parts, with the first part at the very top of the expected support box and the second part within it. Rarely will we ever take a new position outside our expected support box.
ALERT!!! A DOLLAR COLLAPSE IS NOW EXPECTED OVER THE NEXT 2-3 MONTHS...ULTIMATE USDX TARGET IS 71 BY NOVEMBER. Position yourself accordingly, although a deeper retracement is expected soon given that this week is month-end.
The confirmed trend of the market for USD is down. With the USD’s closed under our another key pivot of 80.0 and now moving through 79.0 we will look to load up scale in fashion for continuation USDX selling on any possible USDX strength although the strength should be marginal and short lived at this point in time and for the next couple of weeks going forward. We expected more of a Head and Shoulder neckline underside retest, however, a collapse is now underway without an underside retest, and we must be positioned for that possibility. The USD daily and weekly chart here http://www.stockcharts.com/charts/gallery.html?$USD. The EUR pairs were expected to be overall weaker than the corresponding correlated GBP pairs however there appears to be rotation of relative strength between the two currencies from day to day. The EUR is now at key weekly and monthly pivot resistance and further longs are cautioned at this point, as gravitation back to the declining 50-day moving average is expected before the advance is expected to resume, as seen in the chart that can be seen here http://www.stockcharts.com/charts/gallery.html?$XEU. In summary, the weekly chart gave a strong retracement to 1.300, 1.333 and 1.351. Now 1.388 and 1.442 are expected and a pullback could be hard to come by and loading up is recommended as given in the “Monster Trade”. Place your trades accordingly. All charts courtesy of www.stockcharts.com.
While a long bias still exists for the JPY, with intervention in the cards and a break of the daily rising trend-line, be wary of the wash and rinse instead of a fast move in either direction that would normally be expected before the turn. Traders should heed my recommendation to avoid the JPY pairs for the time being. This is seen on the chart given here at http://www.stockcharts.com/charts/gallery.html?$XJY.
The GBP/USD saw a nice support level formed at the 1.5300 level, and reached a key weekly pivot at 1.572, retraced somewhat and continued to 1.584. A more significant retrace is expected and longer term; it makes sense to continue to look long on weakness back in the 1.557 - 1.562 levels for the next expected targets of 1.600, 1.622 and 1.642. The GBP as seen here, http://www.stockcharts.com/charts/gallery.html?$XBP, has broken up near the 50 and 200-day moving averages and a longer term PPO buy signal has been triggered.
Most of this week’s key reports are towards the end of the week. They are:
1. Wed. Sept. 29, 2010 (5:30am EST) CHF KOF Economic Barometer.
2. Thurs. Sept. 30, 2010 (2:00am EST) UK HPI and (8:30am EST) CAD GDP; US Unemployment Claims and GDP.
3. Fri. Oct. 1, 2010 (3:15am EST) CHF Retail Sales and (4:30am EST) UK Manufacturing PMI and (10:00am) US ISM Manufacturing PMI.
The swing trade for today’s Asian-London-U.S. session is to BUY the GBP/USD at 1.5818 with a STOP @ 1.5795 and a TRAGET of 1.5900 for 80 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 $49$ for a 1 week trial. Don’t miss out on more PIPS!!!
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.
No comments:
Post a Comment