Thursday, November 4, 2010

Daily Trade for Nov. 4-5, 2010

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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, Thursday the 4th to Friday the 5th of November 2010.

 

The swing trade for yesterday’s Asian-London-U.S. session to BUY the EUR/USD @ 1.410-1.411 area missed the fill by 10 PIPS but we were able to adjust our entry in the Live Forex Trading Room right before it blasted higher giving us 80PIPS.  Trade with Mr. GREEN for $49$ for a 1 week trial.  Don’t miss out on more PIPS!!!

 

          The dollar is continues to collapse while precious metals are surging stoking the fires of inflation which the nitwits at the Fed believe that they can somehow control once they let the genie out of the bottle.  What they cannot control is the Foreign Exchange markets which are breaking the back of the US Dollar.  The FOMC kept the fed funds rate in its record low range of 0-0.25% as expected and also detailed some of their plans for quantitative easing.  They committed to buying $600 billion in longer term treasuries by the end of the second quarter of 2011.  This makes for a total of $850 to $950 billion in purchases when including the already ongoing reinvestment purchases detailed at an earlier meeting.

          I no longer expect a Head and Shoulder neckline underside retest in the 79-80 area…basically….this suckers going down.  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 still appears to be rotation of relative strength between the two currencies from day to day.  Longer term a real collapse is expected to start now with a continuation into a 2-year cycle low by the end of the month. At the moment as stocks are being bid up as bonds and the Dollar are sold off again and I expect this to continue longer term.

          A choppy decline of the EUR/USD is over and a PPO buy signal triggered.  The EUR is expected to move higher, possibly to the 1.442, 1.495 and 1.600 areas.  The EUR chart seen here, http://www.stockcharts.com/charts/gallery.html?$XEU shows these areas now on a sell signal.  Place your trades accordingly.  All charts courtesy of www.stockcharts.com.

          An ABCD technical pattern is seen in the GBP that seems to temper Sterling's strength.   The key round numbers past 161 have been bested.  The GBP is now 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 GBP weakness to look for entries to go long.

          For the JPY intervention is still in the cards and a 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 turns but looks to be rolling over longer term.  Traders should continue to use caution should the JPY pairs be traded for the time being as seen on the chart given here

http://www.stockcharts.com/charts/gallery.html?$XJY.

          On the commodity currency front, the Aussie now at parity after an unexpected rate hike by the central bank is likely to continue to the upside even though it looks extended the fundamentals are supportive and should look on the long side on any pullbacks.  The AUD is seen here,

http://www.stockcharts.com/charts/gallery.html?$XAD.

 

This session’s key reports are soon upon us and should allow for a retrace of the USDX before continuing the expected US Dollar collapse next week.  They are:

 

1. Fri. Nov. 5, 2010 - (5:30am EST) UK PPI; (7:00am) CAD Employment Change and Unemployment Rate and (8:30am) US Non-Farm Employment Change and Unemployment Rate.

 

There is no swing trade for today’s Asian-London-U.S. session.

 

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.



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