Sunday, May 1, 2011
Trend for 1st of May 2011
Markets will open in a few hours. I believe everything will be the same this week as it was the previous one. Most securities will resume their trends, although their might be some reversals on Monday. I have mentioned a few times that Mondays are reversal days and there are pullbacks which one can use to make some profit. From fundamental point of view currencies should be pretty calm on Monday as there is no data of high importance scheduled from the biggest economies of the world.
Tuesday should be more interesting as we are going to see very important data from Australia (Reserve Bank of Australia Rate Decision) at 4:30 GMT and Euro-Zone Producer Price Index at 9:00 GMT. I believe the data will move markets at least short term. Key events will be Bank of England Rate Decision and European Central Bank Rate on Thursday as well as US Change in Non-farm Payrolls on Friday. So, as you can see we are going to see a pretty interesting week.
From technical point of view aud/jpy looks more interesting as it again forming a small daily range (a horizontal channel) with support at 88.60 and resistance at 89.30. It can be broken before the news is released, but if the prices stays inside of it till the news then you should place buy and sell stop orders outside the channel and wait for the channel to be broken either at support or at resistance. If you remember from last time, the price broke the channel before the news and after the news in a matter of twenty four hours formed a reversal pattern and went upwards (read my posts that I wrote on 17th and 19th of April).
This week I am intending to describe some strategies how you could trade in a trend using technical indicators. Have a profitable trading week.
Read my previous post:
Trading financial markets carries a high level of risk, and may not be suitable for all investors. All information on the blog is of educational nature and cannot be considered as advice, recommendation or signals to trade in any financial markets.