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Wednesday, March 16, 2011

Trend for 16th March 2011

Today the Forex market was basically moved by technical factors as fundamental news that is of real importance failed to produce a trend in currencies. When you see that fundamental data fails to move prices you should start searching for important technical patterns that could show a possibility for a breakout of a pattern or a continuation of an existing range. Today, although the market failed to react to fundamental data from Great Britain there were some nice patterns in pound pairs that presented us with great opportunities to make some money.

Gbp/jpy formed the best technical pattern and if you had taken a sell trade in it, you would have made really nice cash. From the chart below you can see how a pair formed a small daily range between 130.55 and 129.55 levels. One of the best things that you could have done is to place a buy limit order above the top of the range and a limit sell order below the bottom of the range before economic news release from Great Britain. Then you simply had to wait for the orders to be opened. Although news failed to push the price below the support level immediately, this was done later in the day. You would have gone together with the market till trend exhausted itself at an even number of 128.00.
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Short term trend