Trend for 30th of August 2011

Hi, fellow fans of financial markets and trend analysis lovers. Today I wanted to stress the importance of following a leader principle. I have a special post on the topic and you will see the link at the end of the post. I mentioned that I expect Canadian dollar to strengthen and Japanese Yen to weaken. Yen has been weakening for some time against some currencies, but Canadian dollar not strengthening yet. As I looked through major pairs today, I saw that a much better candidate for going short Euro is not eur/cad, but eur/aud. Why is that?

EUR/CAD is still kissing the resistance and going nowhere, while eur/aud managed to break its’ support and is bellow it now. Looking at other Euro pairs you see that aussie is the strongest at the moment and managed to take power over Euro first. It means the pair might be the leader in a bearish move, which is going to be against Euro. One has to place the biggest bets on the leader. The same pattern can be seen in Japanese Yen pairs. Australian dollar is the strongest among them. 

In fact, Yen is still pretty strong against most currencies, or in the same manner as Canadian dollar, not going anywhere yet. But aud/jpy is strengthening and eur/aud is weakening. Does it say anything to you about the leader in forex market. Yes, you guessed right, the biggest winner will probably be aussie. I think it is wise to be with winner and avoid losers. These are only my predictions. You have to make your own and rely on your own reasoning. But never forget that the principle I am discussing right now is very important. Hope you see that.

See also:

Follow the leader

EUR/AUD

Disclaimer

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.

Trend for 29th of August 2011

Hi, everyone who enjoys trend trading and analyzing financial markets daily. A normal Monday! My predictions regarding Yen are coming true. I guess it was a week ago or more when I wrote that Yen looked bearish and would fall sooner rather than later. I gave an example with aud/jpy and a few more Yen pairs. Bearish move is materializing now. Canadian dollar is also gaining power bit by bit. I am still waiting for eur/cad to go down. Data tomorrow or after tomorrow can push currencies pretty bad. We have some data from FED tomorrow. Be ready for some exciting moves. Gross domestic product on Wednesday can create a lot of volatility too.

I wanted to show you that eur/gbp is at resistance at the moment and may go down any moment. Support is 0.8930, but I do not think the level will hold for a long time. Breakout traders will be selling the pair below the level. I think the pair is headed towards support of 0.8650 and in the weeks to come it will be going much lower. At least I see so! Very bearish technical picture in eur/gbp long term! But I have already talked about it. Look through my previous posts to understand better what I mean. 

See also:

Support

Resistance

Disclaimer

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.

Trend for 26th of August 2011

Hello, trend followers, day traders and independent analysts. As you can see eur/cad did not turn down today as I expected but moved higher. I do not know which piece of information caused that, but I still hold to my position that Canadian dollar will strengthen against most other currency pairs. Resistance for eur/cad is still at 1.4340-70. I am waiting for reversal patterns there.

As Mondays are often reversal days, we can see reversal coming on Monday. Today was a pretty volatile day, but as you can see currencies are not moving anywhere. This is often the case in summer months, but be sure that large moves will come back when the fall comes. That’s the best time for market trends. I heard one very experienced technical trader say that most money in the markets is made between November and May. 

So, do not open up too much for risky trading now. Better watch what happens, mark support and resistance levels and wait for nice breakouts from these ugly summer ranges. If you are in USA I wish you good luck to survive hurricane Irene and have a nice weekend. 

See also:

Support

Resistance

Disclaimer

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.

Trend for 25th of August 2011

Back to eur/cad trends

 

Hi, market trend analysts and independent traders. Let me talk today a little on eur/cad pair. I discussed it a few days ago and want to come back to it today. If you remember I told you that I expect Canadian dollar to strengthen against Euro and other currencies. I also indicated levels of possible reversal that have to be watched carefully. It looks like eur/cad has reached the point of critical resistance and will go down sooner rather than later.

Data from Great Britain can push eur/cad lower

 

Friday is the last day of the week and as many reversals happen on this day I think we could see eur/cad start going down today. I do not see any data coming from Canada on Friday, but we have some very important coming from Great Britain and this could trigger moves across the board. EUR/CAD will be influenced too. By the way, gbp/cad has already started moving down sharply and could be a leader in this Canadian dollar strengthening. 

Important level of support in eur/cad

 

Below you see a chart with eur/cad and a support level. If it is broken I believe we are going to see much lower prices in the pair. 1.4100 is the level. If it breaks down we can see a very sharp fall in the security. So, be aware of data from Great Britain (Gross Domestic Product) and data from US (the same data). There will also be Ben Bernanke speaking at Wyoming. This can impact financial markets a lot. So be on guard and not overexposed to too big positions for market can take severe hits during news releases and you might find yourself unprotected against them. Good luck in trend trading and see you tomorrow. 

See also:

123

Follow the leader

Disclaimer

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.

Trend for 23rd of August 2011

Hello, fellow trend fans. I did not write anything yesterday, as there was not much to write about. I want to talk a little about gbp/chf pair today. It has been in a very long downtrend and a few weeks ago the pair saw a counter trend move. I looked at the charts today and saw that the security reached the resistance level and is ranging. It may mean one of the two things. Either gbp/chf will break up or it will make a reversal down and continue its long term downtrend. 

You may see a cluster of candles on daily chart and 1.2900 level is acting as support now. It may also be a place for selling a breakout downwards. So, be ready to place a short order below the level and move with the market. If the level holds we might see much higher prices. Then a breakout upwards would be a choice and then adding to a position on dips. That’s how you can trade a move upwards if it materializes.

Hope the short post was useful. Good luck in trend trading.

See also:

Breakout

Swing

Disclaimer

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.