After achieving a 4-year low of 1.1875 last Monday, the EUR/USD closed last week at levels above 1.2100 area, shifting the pair’s near-term risk to the topside. Many experts are calling for a corrective rebound to 1.2330 and 1.2445 before we see a resumption of the main downtrend from there. I believe we could see the upper 1.2500′s reached if fundamentals continue to come in solid as they have over the last week. The consensus for this weeks’ Eurozone industrial production is for a lower amount than the previous readings, however given that April’s EU manufacturing PMI came out at a 46-month high and that German manufacturing PMI data showed its fastest sector growth since 1996 could mean there is
Continue reading–>Bullish Sentiment Returns to the EUR/USD
I was invited to join their Pro group for a few weeks and see what their Pro services were all about. This was not only a big surprise but also a huge honor. In addition to his role as Chief Market Strategist for fxKnight.com and a series of private funds, Andrei Knight is also a regular contributor to FXstreet, DailyFX, Forex Factory’s FNN, BabyPips, ForexPros, and the International Business Times, where he also sits on the advisory board. He is the author of “Trading Forex for a Living”, a certified NLP Practitioner, and a Certified Professional Life Coach. With a resume like that, you know you are in good hands when investing in
Continue reading–>Forex Education| fxKnight.com Review
I don’t talk much about this pair as there is so much info out there but I do trade it quite a lot. Following on from RMS Traders comments yesterday about when to hit the button, I wanted to show a near perfect example of what I am looking for in a high probability trade set-up.
A nice quiet Asian session in a tight consolidation condition keeping near the Previous Weeks Low. The probability, and that’s what we are basing our trading decision on, is very high for a continued decline in the Euro. We can identify a weak rise in price at the beginning of the European session, but our trading plan
Continue reading–>FOREX DAWN| EUR/USD Strategy Example
Yesterday it was rather difficult to find the right set-up, EUR/JPY & GBP/JPY were movers but I couldn’t find a satisfactory way in without increasing risk or decreasing lot size, I ended up back at the EUR/GBP. The series of charts show firstly the identification of a consolidation period and the confirmation of a weakening Euro against a slightly stronger GBP on the ‘strength meter’. Not great I admit but I went with it anyway.
I played the breakout, but in retrospect the trade should have been a range trade, entering where I placed my SL. This is a mistake and a point I need to keep an eye on.
Two
Continue reading–>FOREX DAWN| EUR/GBP Trade with Update
Two reports from a very high profile U.S. consulting firm helped put pressure on the euro during today’s sessions. One report said the SNB cannot sustain intervention in EUR/CHF as it has been doing. The second report said conditions are sufficiently dire in the euro money markets that the ECB may renew its 1-year long-term refinance operations, which expires next month, that was responsible for pumping over EUR 440 billion into the market last June. The ECB announced months ago that its was ending its LTRO funding operations but has been forced to reinstate both the three and six month refinance operations when the sovereign debt crisis intensified last month.
New fears also arose over Hungary becoming the next Greece which
Continue reading–>EUR/USD Wrap Up and Pre-NFP Analysis
This should have gone up yesterday but I ran out of time, anyway as I always point out this blog is about learning not signals. As time moves on we are building up a proven history of how this breakout strategy keeps on working, and the reason it keeps working is because we are following the big money. They decide, we follow.
A pretty straightforward breakdown of support from a ranging condition, the attempts at a move higher in price not hooking us in, as the overall trend is most obviously down. On a 5min chart you could have gotten in a little earlier trading a breakout of a smaller range within the
Continue reading–>FOREX DAWN| EUR/GBP Setup
Europe, if it didn’t already exist you’d be hard pressed to come up with such a unique creation of civilization. It’s history is ageless but one of the major themes that has been present through practically all of that tale, is trade. The buying and selling of things is a very strong foundation in our evolutionary lives, and has immediate and long term ramifications for all societies. For those of us who have chosen to buy and sell currencies the ‘immediate’ is where our objectives are focused, but nevertheless it is sometimes interesting to look at the bigger buying and selling picture to understand potential new general economic trends that may
Continue reading–>FOREX DAWN| Euro Zone Imports and Exports
I go over not only daily pivots, but also how to use them together with support/resistance and fib. lines to find trade setups. Here’s how
After a very uneventful day yesterday the market exploded back to life today during both the European and NY sessions. The trading day began with serious market jitters over a multitude of problems: European stocks went down sharply (FTSE and DAX around 2%), oil off around 2 bucks, worries over health of euro zone banks, worries over France’s AAA rating, worries over China’s growth, worries over BP oil spill. Risk aversion remains very high.
With regards to the health of the euro banks I just mentioned, the European Central Bank sent announced last night that banks in the eurozone nations faced having to write off another €195 billion in bad loans
Continue reading–>EUR/USD Wrap Up for June 1
The Euro has taken a bashing recently losing 16% of it’s value since the start of the year, but is it really a problem? Lots of European countries have just crawled out of recession and with the ever present threat of a double dip just round the corner a cheap Euro is in my opinion not such a bad thing. In fact many see the currency as over valued by as much as 7% against the dollar, the Euro is far from being a weak currency, the problems seem largely political.
The advantages are in a countrys exports which typically become cheaper, creating demand which helps the job market which eventually helps the
Continue reading–>FOREX DAWN| Euro Perspective
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