$ £ € ¥
GreenForexTrading.com
ForeX forX-tra Gr€€n
Hi everyone,
In this e-mail I am going to give you my review for the month past and view on the market for Thursday the 2nd to Friday the 3rd of December 2010.
The swing trade for today’s Asian-London-U.S. session is to SELL the EUR/USD @ 1.3225-1.3235 area with a STOP @ 1.3254 and a TARGET of 1.3075 for 140 PIPS.
Going forward, the dollar has room to move higher here, but prices need to follow through higher, and two possibilities now exist. The first being the underside neckline test which is where the USDX is now pushing the 81 area and would need to see some confirmation of topping action to confirm with the 82 area being the limit of upside if this case is to be valid. The second is if the 82 area is exceeded then a larger consolidation pattern (a triangle wedge) would be in play with 86 as the target. This month should tell us where we will go. We may have to endure some serious price swings, chop, wash and rinse, however you call it, to see which plays out first. 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?$USD. The EUR pairs were expected to be overall weaker than the corresponding correlated GBP pairs however there still appears to be rotation of relative strength between the two currencies from day to day. Overall, economic data continues to be abysmal from a strong dollar currency standpoint but given EUR problems of late, it is a case of pick your poison.
An argument can be made that the EUR is a bit overvalued and think that GBP is more attractive currency. A short term bottom of the EUR/USD seems here at the 1.29-1.30 region and wash and rinse can be seen before a longer term advance is expected to resume. This decline could just as easily end here at the 200-day moving average as the EUR moves higher to test the underside of the 50-day moving average at 1.37 and then possibly another pullback to 1.34 before the key 1.442, 1.495 and 1.600 areas are expected to be seen longer term (should Ireland, Portugal and Spain hold it together). The EUR chart seen here, http://www.stockcharts.com/charts/gallery.html?$XEU shows these areas now on a sell signal. Place your trades accordingly. All charts courtesy of www.stockcharts.com.
Recent sterling strength has given way to weakness on Dollar strength. The GBP is still in bullish alignment with the 200-day moving average and a bounce is expected upon confirmation of a small reversal bar as seen here, http://www.stockcharts.com/charts/gallery.html?$XBP, and traders should take a wait and see approach although a trading range is expected it could be fast and be ready to jump on either way if it moves.
For the JPY intervention look to have been put on the back-burner as recent Dollar strength has mitigated the need for such action and any trades taken on the JPY would be as a buyer so as not to inadvertently fight the Bank of Japan. Be wary of the wash and rinse instead of a fast move in either direction that would normally be expected before the turns but looks to be rolling over longer term. Traders should continue to use caution should the JPY pairs be traded for the time being as seen on the chart given here http://www.stockcharts.com/charts/gallery.html?$XJY.
On the commodity currency front, the Aussie looked on the verge of collapse but then reversed the reversal and looks like it wants to make a head and shoulder top on the daily. While the fundamentals do not support such an outcome, based upon an interest rate differential to the Dollar; it would be unlikely that any such carry trades be unwound, this is the currency to watch. More than likely, more consolidation is favored rather than going full sell of the Aussie here. Like the EUR, heavy, choppy consolidation, is expected to continue before the range is broken, most likely to the upside. The AUD is seen here, http://www.stockcharts.com/charts/gallery.html?$XAD.
The key reports for today’s session are:
1. Fri. Dec. 3, 2010 - (4:30am EST) UK Services PMI; (7:00am EST) CAD Employment Change and Unemployment Rate and (8:30am) US Non-Farm Employment Change and Unemployment Rate.
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. The service costs $179 per month. 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