Archive For "October, 2009"

10-05-09

5:22a GMT – …And right now the bulls are winning. A mixture of fundamental news helped to boost  the Euro over the dollar, including 1) the Aussie government unexpectedly raising interest rate led to an increase in USD shorting and 2) a story was published in the UK that said several governments, including China and Russia were looking to partially replace the USD as the reserve currency for crude within 9 years. These news pieces provided the extra boost to raise the EUR/USD past key resistance at 1.4680 and up to another key resistance at 1.4720. The Euro is still overbought against the dollar but there is big money involved here that is out of our control, therefore we will take what the market gives us. I would look for an opportunity to short around 1.4725 if the failure was present or the candlestick was strong enough, but at this point I have to also start looking for buying opportunities, first at support around 1.4650. Until we get some more direction from the markets, this might be a good day to sit out and wait for some more news :).

Trading Idea: Remember, better to miss out than to take a questionable trade!

(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

10-05-09

6:20a GMT – Welcome back PipHutters! I hope everyone had a great weekend and is ready for Monday’s forex signal.. First off some fundamental news tidbits. Euro Monetary Chief hinted that the Euro was overvalued against the dollar. I always find it interesting what people who know a lot more about their currency than I do have to say about valuations. Another stat – the PPP value of the EUR/USD rate has the Euro about 3000+ pips overbought against the dollar. Technically we have a possible double-top forming underneath 1.4650 as the pair has risen up to this resistance early this morning but has stalled out so far. I will sell a failure of this level, or if it is broken look to reset on a failure of 1.4670.

Trading Idea: Looking to sell a failure of 1.4650 with short targets at 1.4610, 1.4575 and 1.4540.

(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

10-02-09

4:54a GMT – No quiz today! But if you look you’ll see a nice bullish reversal doji at the bottom of the chart, about 4 hours ago. Price action rose about 50 pips after the doji. Just for good measure back out to the weekly chart and see if you can spot the reversal signal of last week! Pretty clear cut what that signal means.

Well here we are at another Friday, and we’ve had sell signals all week long. And for good reason! The price has dropped over 200 pips as the forex markets react to the latest news from the US and in general correct an oversold USD. Going into Friday I expect more of the same and will look to fade (sell) rallies into resistance.

Trading Idea: Nearest decent resistance to look for a failure is at 1.4570-1.4600 (though I’d keep an eye out for any signals right now around the 1.4550 area as well). Short targets from 1.4570 at 1.4535, 1.4500 and 1.4465.

(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

10-01-09

4:24a GMT – Quick pop quiz for you: there was a very bearish candlestick on the charts about 4 hours ago. Can you name what the candlestick formation was and why it was significant sell signal? Post your answers below. On to the signal…

Happy October! It is starting to get cold outside but the forex market is heating up. I am still bearish on the pair and therefore looking for areas to short, but there are also some bullish signals beginning to creep into the picture. First and foremost we had a bullish engulfing candlestick yesterday on the daily chart. We also had a higher high and higher low in general. That’s OK though as long as key resistance levels aren’t broken (we have 1.4680 and 1.4720 still holding down prices). Those looking to re-enter the market for shorts should look for failures between 1.4660-14680.

Trading Idea: Look to short failures in the 1.4660-1.4680 resistance area, with short targets to 1.4630, 1.4600 and 1.4565.

(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