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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 Wednesday the 22nd to Thursday the 23rd of December.
Still there is nothing but chop and a sideways grind in the USDX. Again, I typically do not trade much going into the holiday season and New Year. I may put on a small position with a tight stop if I like what I see forming on the charts, but that would likely be about it. Light volume can be very dangerous to trade because sharp price spikes up or down can occur in a blink of an eye catching traders off guard. The USDX is now at the line in the sand with any sustained move above 80.5 that could possibly lead to further strength to the 82 area. The 80.5 area is the key area to watch for any signs of a continuation move and further weakness in US Dollar denominated pairs or a reversal that takes hold and will lead to breakouts of many currency pairs after some period of consolidations. We are now in the crux of the holiday season and several fake-out moves can be expected this week and next so position size and stop placement can become an art-form in this environment so caution should you decide to trade this week is advised. That being said, let’s look at the charts to say not much has changed this week. The USDX has carved out a very range bound by the 200-day moving average (DMA) and now 50-day M.A. and looking for the next major direction for the dollar as seen in the USD daily and weekly chart here http://www.stockcharts.com/charts/gallery.html?$USD.
The EUR moved higher into stiff resistance at the 1.3500 level but look for a test of the underside of the 50-day moving average at 1.37 now that another pullback to the 1.32 area has happened. The key 1.442, 1.495 and 1.600 areas are expected to be seen longer term (should Ireland, Portugal and Spain hold it together). The EUR chart seen here, http://www.stockcharts.com/charts/gallery.html?$XEU, is showing areas that are now on a sell signal but is close to new PPO daily BUY signal after a 38.2% retrace level has been tested. 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 now neutral also bound by the 50 and 200-day moving averages and a PPO daily BUY signal against a weekly SELL creating a wash and rinse scenario for the foreseeable future, as seen here, http://www.stockcharts.com/charts/gallery.html?$XBP.
Traders should continue to use caution should the JPY pairs being neutral also bound by the 50 and 200-day moving averages and a PPO daily BUY signal against a weekly SELL creating a wash and rinse scenario with a slight downward bias for the time being as seen on the chart given here http://www.stockcharts.com/charts/gallery.html?$XJY.
On the commodity currency front, the Aussie looked on the verge of collapse but then reversed the reversal and looked like it wanted to make a head and shoulder top on the daily but was invalid ... this is the currency to watch now at parity with the U.S. Dollar. Like the EUR, heavy, choppy consolidation, could be over as the range is broken, most likely to the upside. The AUD is seen here, http://www.stockcharts.com/charts/gallery.html?$XAD
Today’s sessions are medium impact but can be volatile in thin trade. They are:
1. Thurs. Dec. 23, 2010 - (8:30am EST) CAD GDP; US Core Durable Goods Orders and US Unemployment Claims; and (10:00am EST) US New Home Sales.
2. Fri. Dec. 24, 2010 - Bank Holiday.
The swing trade for today’s Asian/London/U.S. Session is to SELL the GBP/USD @ 1.5440 with a STOP @ 1.5565 and a TARGET of 1.5378 for 60 PIPS.
I would like to wish all my subscribers and readers a blessed holiday season. It gives me great pleasure to be able to help you all when I can in some small way and even entertain you sometimes. I know I am not perfect and sometimes my writings are much less than others but I am thankful to you all who so graciously read my screeds and sometimes mediocre work. And mostly, I’d like to thank you subscribers who put up with my rambling on a daily basis!
Enjoy your Christmas long weekend if you celebrate it, wherever you are. And if you don’t celebrate it, enjoy the quiet that is sure to come with US markets closed Friday.
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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Mr. Green
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