$ £ € ¥
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 13th to Thursday the 14th of October 2010.
The swing trade for yesterday’s Asian-London-U.S. session to BUY the GBP/USD did not fill and chop made any second entry risk/reward profile undesirable.
UPDATE ALERT!!! “Monster Trade” Stopped out of the EUR/USD SELL at 1.408...see below...
A DOLLAR IS NOW IN NO-MANS LAND. A POSSIBLE REVERSAL TO UPSIDE IS POSSIBLE JUST AS LIKELY AS A COLLAPSE IS. THE LEVEL OF 77.0 WAS CRUSHED AND IF A MOVE THROUGH 76 HAPPENS AND WE COULD SEE 71 BY NEXT WEEK.
The US Dollar cannot manage more than a day or two of stability before it gets whacked down again. Even a bear market will see some brief periods of short covering and some bottom picking every now and then. The Dollar has not rallied to any large extent. It just “feels” heavy. The only thing that has kept it from cascading even more fiercely is the activity of various Central Banks around the world who are intervening and buying it to depress their own currencies plus the occasional jawboning or “verbal intervention” by various monetary authorities to talk the Dollar up and their own currency down. It looks like no support again down here near 77 on the USDX and a drop rapidly to near 76 by tomorrow seems assured. Yesterday was more of the predicted choppy PIP losing environment. Regardless, the little staged drama act served to push out a few shorts in the Dollar before collapsing again.
The euro’s move through the 1.40 level and butting at the 1.408 area, the U.S. dollar has broken and an accelerated move is now possible. While I am still expecting some kind of correction that will cool things off and provide the next buyable dip in dollar denominated pairs it could be more shallow than anticipated. The dollar index is now breaching an uptrend line from the 2008 lows. A significant break below this trend line will signal a likely retest of the 2009 lows in short order (and next the 2008 lows) in the 71 area. A successful bounce from this trend line could send the dollar hurtling right back to the 80.0 area in the USDX or even the 200-day MA resistance and the expected Head and Shoulder neckline underside retest. However, the USD selling just continues and must be positioned for the possibility of a dollar collapse should the 76-77 area give way. The daily close-up shows once again how important the 200-day moving average (DMA) is in flagging the next major direction for the dollar as seen in the USD daily and weekly chart here http://www.stockcharts.com/charts/gallery.html?$USD. The EUR pairs were expected to be overall weaker than the corresponding correlated GBP pairs however there appears to be rotation of relative strength between the two currencies from day to day. The EUR is now at another key weekly and monthly pivot resistance but these are less important to pick a spot for a decline, as seen in the chart that can be seen here http://www.stockcharts.com/charts/gallery.html?$XEU. Place your trades accordingly. All charts courtesy of www.stockcharts.com.
The GBP seems to have completed a minor corrective phase and is still in bullish alignment with the 50 and 200-day moving averages as seen here, http://www.stockcharts.com/charts/gallery.html?$XBP, and traders should take a wait and see approach although a trading range is expected it could be fast and be ready to jump on either way if it moves.
Traders should still use caution should the JPY pairs be traded for the time being, although the JPY can be nibbled on in this region as a reversal looks impending, as seen on the chart given here http://www.stockcharts.com/charts/gallery.html?$XJY.
On the commodity currency front, the Aussie looked on the verge of collapse but then reversed the reversal and looks like it wants to make a run towards parity with the US dollar. Eventual parity with the USD is now a chip shot as the minimum for the AUD/USD and AUD as seen here, http://www.stockcharts.com/charts/gallery.html?$XAD, is hanged up at recent highs.
Most of this week’s key reports are towards the end of the week. They are:
1. Thurs. Oct. 14, 2010 (8:30am EST) US PPI and Unemployment Claims and (8:30am EST) CAD Trade balance.
2. Fri. Oct. 15, 2010 (8:30am EST) US CPI, Retail Sales and Consumer Sentiment.
The swing trade for today’s Asian-London-U.S. session is to BUY the GBP/USD @ 1.5945 with a STOP @ 1.5910 and a TARGET of 1.6072 for 120PIPS. This is a gutsy play and if the1.600 level is exceeded you could go long as a momentum play with a loose trailing stop. Position size to your comfort is key.
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 carfully 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