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 17^th and 19^th 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:

Two ways to trade in a trend

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 18th of April 2011

As I said yesterday, this week could be rich in trends. Today proved the correctness of the statement very well. The first opportunity for a trade arouse at the release of the data from New Zealand (Consumer Price Index). Nzd/usd pair was a perfect candidate for a short trade. The pair reacted very negatively to the news and the pair collapsed for about 70 pips from 1.7970 level before finding some support at an even number of 1.7900. As the pair was rather patiently waiting for the news to be released you could calmly place a sell stop order below 1.7974 level and the market would have opened your order and took you to the above mentioned even number. In fact, you could be still in the market now as the pair continues its descent.

If you do not trade Asian sessions you would still have had opportunities during European session. Just look at eur/usd pair. During Asian session the pair was slowly going down and found support at 1.4349 level. It jumped somewhat and formed for us a unique opportunity to place a sell stop order below the level. When London session opened the pair passed through the level and you could have easily gone down with it till an even number at 1.4300. It is best to exit some or all of your position, because ‘big boys’ tend to exit market at those areas. 

Aud/jpy pair is still in the range that I wrote about yesterday. I expect it to be broken quite soon (does not matter up or down). I believe news from Australia today at night can be a catalyst for a possible short term trend one direction or another. So, watch price action around the time when news is released and be ready to take action. If you are new to news trading, don’t do it before you practice it a few months on a demo account. 

Read my previous post:

Aud/jpy range

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 17th of April 2011

A new trading week is about to start. I hope we are going to see a daily trend in many pairs this week. As I mentioned yesterday, I expect silver to go up long term and dips I see as opportunities to buy. It is difficult to say anything specific about eur/usd, the most traded pair in forex. It looks trapped between 1.4518 (resistance) and 1.4364 (support). Trend is still up, but there can be short term reversal along the way up. In general, you can buy a break of the above mentioned high or wait till it is broken and enter the market during European sessions after counter trend moves during Asian sessions. 

I am currently looking at aud/jpy pair and see it in a tiny range (caged between 88.54 resistance and 86.78 support). This pair interests me most at the moment as it has been in an uptrend for a considerable period of time. It looks as if market is waiting for some sort of fundamental push for the pair either to continue moving up, or reverse at the sign of possible deterioration of Australian economy. We have very important news coming from Australia on Tuesday night (Australia Bank’s Reserve Minutes). I think this will give the pair and other Australian dollar pairs a direction. As you may understand one of possibilities are to buy a break of resistance and sell the break of support when the news is released. 

Sunday night and all Monday seem to be boring from a fundamental point of view. Exception is only data from New Zealand (Consumer Price Index). This could cause some serious moves not only in kiwi pairs, but also those of Australian dollar. The pairs are very connected and if something happens to New Zealand dollar, there is usually a domino effect in Australian dollar. So, be sure to check the data from Zealand. So much for today. See you tomorrow. 

Read my previous post: 

How to add to a position in an uptrend (silver example)

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.