Wednesday, June 29, 2011
Trend for 29th of June 2011
Hi, everyone. Let us look at market trends today. As I am not able to show you oil charts today, I can simply state that it has been going up after it has found support at 89.50. It is at resistance now and we have to look at price action now. Although it is above 200 sma on 1 hour chart, it is well under 200 sma on 4 hour chart. I am neutral on the commodity and wait for European session to see what opportunities are there for the security.
Silver broke up together with oil and as far as I see oil was the leader in this move that commodities have experienced today. I do not think we have seen the real bottom yet, but simply looking at the technical picture I get the feeling that the bottom is very near. So, I am getting ready for a real bullish move in precious metals. And oil, of course!
I hope you have seen how Canadian dollar reigned today against all currencies. Eur/cad was especially weak collapsing from 1.4068 to 1.3950 level in two hours. It was very easy to trade the pair this time. 1.4068 level was visited 6 times in these two days, but not broken. So, you could place a sell stop below the level just before the news release with a stop loss order at 1.4110 level and go with the flow down when the news was released. Exit could have been at even number of 1.4000 or other important previous support at 1.3960.
Usd/cad would not have been so easy to trade for the pair was moving down before the news and it would have been difficult to find a proper place to enter the market. So, if you see situation like that, it is better to search for the best pair to trade the news. In this case eur/cad was the best (at least I think so).
British pound, as I expected strengthened today. It has just broken resistance which I mentioned yesterday (gbp/usd) and it looks like the pair is willing to go up. One thing that I do not like is that the pair broke up not long ago and the volume is not very strong, so I am not sure if it will really go up through Asian session. However, if you are in doubt, it is better to have a smaller position (in case the pair does go up) rather than not having any position at all.
As pound is strengthening, other pound pairs can be traded from the long side too. In my opinion gbp/jpy is the best (my favorite pair). At 13:30 GMT it fell to support, formed 123 pattern and moved back in the direction of the trend (upwards). So, at the break of point 2 you could have gone upwards.
Let’s hope tomorrow bring more trading opportunities.
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.