Tuesday, March 15, 2011

Daily Trade for March 15-16, 2010

$ £ € ¥

GreenForexTrading.com

ForeX  forX-tra  Gr€€n

 

Hi everyone,

 

I wish to express my heartfelt sympathy for those suffering from the Japan earthquake and tsunami.  I believe that this affects everyone of us in one way or another....and I pray that they get these nuclear reactors in control.  The nuclear fallout in Japan is severe and this tragedy is beyond words.  Of the reports I have seen and read I am overwhelmed with the stories of tragedy and survival.  My prayers go to all of us on this planet and I will be watching this situation closely these next few days.

 

In this e-mail I am going to give you my view on the markets for Tuesday the 15th to Wednesday the 16th of March 2011.

 

          The current situation is very difficult to analyze due to geopolitical turmoil and Japan’s tragedy. The move to “safe-haven” US Dollars distorts assessments and positions should be adjusted lower.

          The USDX looks on the verge of collapse as another rally attempt fails.  The retracement ceiling now at 78 which is now also the declining 50-day moving average.  The USDX is in a zone of weekly support at 75.5-76.5.  Finally, in the broader context, the monthly chart shows that the rising trend line that forms the bottom of a reverse pennant formation is now at 76.5.  A decisive breakdown from that pennant to below 75.5 would have serious implications regarding the potential downside.  I expect ALL these numbers to become toast…this week.  This week, I will be looking for continuation entries into U.S. Dollar denominated longs on any USDX strength early this week for both scalp and longer term positions.  Witness a weekly PPO SELL signal in alignment with a weak daily SELL.  So look to go long and get more aggressive on longs of U.S. Dollar denominated pairs on any weakness (USDX strength) into some retracement zones anytime this week, and expect any USDX rally to be short-lived<<<that last reversal was and we have a Gravestone Doji “at the bottom of a significant downtrend” can mean a positive reversal, it is not, however, as good an indicator for a bullish reversal as it is for a bearish reversal and we will be trying to read the tea leaves on smaller time frames to find entries as the USDX still looks pretty sick now on the daily and weekly time frames, as seen in the USD here http://www.stockcharts.com/charts/gallery.html?$USD.

          The EUR is the inverse of the USDX and with the backdrop of a PPO that now has triggered a daily BUY signal (almost another SELL) against a weekly BUY signal extended from the 50-day moving average, and the bounce here looks to continue and now look for some bottom action on lesser time frames to enter and go long.  Now look for a break above 1.403 to 1.41, and with retrace to 1.375 to 1.385 completed, we can look for chop again in the 1.40 area before 1.425, 1.45 and 1.50 can be seen in short order, as can be expected on future dollar weakness as seen in the chart here, http://www.stockcharts.com/charts/gallery.html?$XEU.  Place your trades accordingly.  All charts courtesy of www.stockcharts.com.

          The GBP has seen some serious choppy swings and a reversal upon reversal bar on the daily and we have been avoiding this on of late but still watching but it is in danger of generating a PPO weekly SELL on what is a PPO daily SELL that needs to turn up against the backdrop of a weekly BUY signal makes cable choppy as of late.  All these cross-currents still make cable a cautious play, as seen here, http://www.stockcharts.com/charts/gallery.html?$XBP.

          The JPY has caught the “safe-haven” BID.  News driven and intervention is in the cards...be forewarned.  No recommendations on JPY that can be played as seen on the chart given here http://www.stockcharts.com/charts/gallery.html?$XJY.

 

This weeks’ activities and reports of consequence are:

 

1.       Wed. Mar. 16, 2011 - (2:00am - 4:30am EST) UK BOE Gov. King Speaks and           Claimant Count Change and (7:30am EST) US Building Permits and PPI.

2.       Thurs. Mar. 17, 2011 - (3:30am EST) CHF Libor Rate and SNB Monetary Policy    Assessment; (7:30am EST) US CPI and Unemployment Claims and (9:00am        EST) US Philly Fed Manufacturing Index.

3.       Fri. Mar. 18, 2011 - (6:00am EST) CAD CPI.

 

The swing trade for today’s Asian-London-U.S. session is to BUY the EUR/USD @ 1.3905 with a STOP @ 1.3878 and a TARGET of 1.4030 for 130PIPS.  Loose stop so adjusted or smaller size recommended in this environment.

 

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.



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