Archive For "November, 2008"

11-14-08

3:26a GMT – EUR/USD shot upwards today, busting through all resistance levels in its way. No bearish reversal signals were given though so no shorts were taken and we stayed out of a bad position. With that latest push we have mixed signals for the EUR/USD. Yesterday’s 350-point rally formed a nice flag pole and we have a near text-book consolidation flag pattern off the top of that flagpole. That would indicate a return to the updside. But if you look at the top yellow trend line, just above price action, we can see that the pair is still well within that resistance level.  Upside is favored, mainly because I trust the flagpole signal more than I trust the trendline. As we approach the weekend however, no trade at all might be the best trade for now :).

Trading Idea: there are two trading methods to consider here. First is a return above 1.2890 would be a very bullish signal and we could wait for a break of that to confirm the trade. Or  we could look for bullish reversal signals around former resistance (and now support) at 1.2650. Long targets favored at 1.2865, 1.2930 and 1.3000.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-13-08

3:53a GMT – The EUR/USD remains bearish though has been finding support in the short term at 1.2450. A good leading indicator to watch tomorrow will be the US stock markets. If the markets go down I expect the dollar to gain strength as traders look for the safety of currency, and if it goes up look for euro strength. Regardless this pair remains technically down on the short and mid-term charts with a break below 1.2300 opening the way for significant losses.

Trading Idea: shorts preferred and looking to sell rallies around resistance levels currently between 1.2620-1.2650. Short targets at 1.2575, 1.2500, 1.2450 and down to 1.2365.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-12-08

3:56a GMT – The EUR/USD finally broke through its triangle consolidation pattern and made a quick dash to 1.2500 which I have been predicting for weeks. On the latest stall I thought it was going to return to the top of the wedge but it did not. Now, the pair still is technically very bearish and a break below 1.2300 will make it even more bearish. In the short term I am looking to sell rallies.

Trading Idea: Shorts favored on rallies, most likely around the 1.2650 resistance level. Short targets favored back down to 1.2500, 1.2400 and eventually a challenge of 1.2300.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-11-08

4:06a GMT – The EUR/USD refuses to break out of its triangular consolidation pattern, having bounced off of 1.2930 resistance and now appears to be bouncing off the bottom of the pattern above 1.2700. In the short term I expect this to return to the top of the wedge around 1.2900 and then fall back down.

Trading Idea: Short term look for long positions back up to the top of the wedge around 1.2900. At 1.2900 look for bearish reversal signals with shorts favored to the bottom of the wedge at 1.2700 and eventually a return to 1.2500.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-10-08

*Quick note before today’s signal – I’ve updated the forex discussion group so that you no longer have to register to post or reply to someone elses post. I still hope you do register and there are advantages to registering, but FYI.

4:04a GMT – the EUR/USD continues to make lower highs within the consolidation triangle in an overall downward trend so my outlook is bearish. Look for news about the AIG bailout on Monday to further upset markets and cause low liquidity as major players pull out. Rumors have it that the US might further reduce the lending rate in its continued effort to drive liquidity in the credit markets which would be bad for the dollar.

Trading Idea: prefer to sell rallies between the top yellow line and the red resistance line at 1.2930. Shorts favored with targets back down to the bottom of the wedge at 1.2700 and eventually back down to 1.2500.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-07-08

3:27a GMT – The EUR/USD pair is still in the triangular consolidaton pattern and I am still looking to sell rallies within the pattern or at 1.2995 to sell with the downward pressure.

Trading Idea: look for bearish reversal signals at the top of the triangular pattern and around 1.2995, with short targets favored back down to 1.2530 and 1.2365.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-06-08

4:26a GMT – The EUR/USD appears to be developing into a triangular consolidation pattern on the 4h charts (higher lows and lower highs), signaling that our downtrend is not over quite yet and that traders are just taking profit on some of their shorts. Fundamentally foreign stocks, especially the Chinese Stock market, were hit hard overnight following a significant loss on the US stock market meaning more investors could put money back into the relative safety of the dollar.

Trading Idea: Looking to sell at the top of the consolidation pattern (currently around 1.2950) or on a clean break of the bottom (currently around 1.2590). Shorts favored down to to the bottom of the pattern at 1.2590 and then onto 1.2500 and 1.2350.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-04-08

13:56 GMT – EUR/USD is starting to look more bullish and I am still looking to buy support levels after the latest rally to 1.2900. I see a return to 1.3200 this week.

Trading Idea: Longs favored around support levels, the nearest being 1.2700 with targets at 1.2805, 1.2915  and 1.3095.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups

11-03-08

3:20a GMT – The EUR/USD has a variety of mixed signals at the moment. In the long-term the pair remains bullish. In the mid-term (weekly) it is bearish and on the dailies it is starting to roll bullish again after last week’s bounce off of 1.2300. For the short term I am looking to buy dips preferably at support areas around 1.2650.

Trading Idea: Look for a dip to the 1.2650 area with longs favored on bullish reversal signals. Longs favored to 1.2900, 1.2995 and 1.3150.

(click to enlarge)

Click here to receive my free forex signals via email
Click here for more info on how to use my free forex signals
Click here to learn how much you can earn with our Forex Income Calculator
Discuss this signal with me and fellow traders at the new Forex Discussion Groups