FOREX-NATION

Lots of rambling talk  in the markets this morning with talks of lots of stop orders just below 1.4300 and lots of sell orders above 1.4370 and a 1.4350 option expiry at the close of New York’s session not to mention dismal Eurozone economic news continuing to pour out and I could go on and on…

But what did stand out to me was the Chicago PMI data that I mentioned I would be watching in yesterdays trade analysis, and it came out much better than expected (60 instead of a consensus of 55) and so I immediately placed a second sell order at the 1.4300 level. It’s now been about an hour since I placed the trade and it is

Continue reading–>Sell EUR/USD at 1.4300

Well after taking a much needed break from trading due to the low volatility and liquidity around the holiday season, I saw the perfect moment to reenter the market. Here’s my analysis for this one.

The EUR/USD has been in a steep downtrend during the month of December and finally began to retrace  the day before Christmas Eve and had been doing so right up until 10:00 today. That was when the first major economic data came out since Christmas; the Consumer Confidence Survey. Last months reading came in at 50.6 and now this months was even higher  at 52.9 which means the US economy is continuing to stabilize and strengthen. Taking that into consideration with the retracement that was

Continue reading–>Sell EUR/USD at 1.4415

So the downtrend continues  as a major support line is broken during the first hours of the open of the Asian market. This break of support on the hourly chart also coincides with another support line on the daily chart formed at the end of September when the EUR began its rise again to new heights. I jumped in at the open of the next candle and within 9 hours was up 149 pips! As you’ll see from the above graphic I initially planned to hold onto this trade thinking with the fundamental and technical analysis all saying the same thing that this downtrend would continue down to S3, but instead it showed signs of stalling out at S2,

Continue reading–>Sell EUR/USD AT 1.4469

I know that the EUR/USD began a downtrend since the NFP news and has had added momentum from the retail sales data that came out last Friday. So I was waiting for a good entry signal in order to short this pair once again. I used several indicators to do this:

1) previously broken support line at 1.4680 (see bold red line in image) was retested Sunday evening and held up as resistance. I would now use that as my S/L.

2) Notice how, after retesting the previous support line and bouncing back off confirming it as resistance, the currency bounced off of the blue MA then sold sharply at the end of the European session. I now wanted to see

Continue reading–>Sell EUR/USD at 1.4656