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Discussion in 'Forex' started by ShadowTrader_08, Apr 17, 2009.

  1. ShadowTrader_08

    ShadowTrader_08 ET Sponsor

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    <h1>Dollars & Sense</h1><br>
    Good evening, Forex Traders. The currencies we were watching moved as described yesterday. Tomorrow could be a big day for the U.S. dollar, the Japanese yen and the euro. The anticipation of bigger days for these currencies is derived from Trichet and Bernanke both speaking tomorrow and Trichet speaking in Tokyo. These central bank chairman wield the economic sword of the two largest reserve banks and currencies. Commentary from these two men often provides clues to future monetary policy as well as overall economic conditions globally.

    The <b>EUR/USD</b> pull back dipped pushing toward lower levels, possibly setting up for a move to 1.28 if not 1.25. If U.S. consumer confidence is better than expected, this could provide the catalyst for the next move. The break below support has pulled back some in the last hour but the pair hasn't provided a clean resistance to test over the last couple of days. Looking longer term going into the weekend will provide us with a better view. On the daily candles we can see we have broken through support near 1.32. Though this break was clean and sentiment is now bearish, we are going to look for a better resistance or another break of support before trading bearish. A retest of 1.32 or a break below 1.2975 would suffice as confirmation to our bearish sentiment. <i>(see EUR/USD below)</i><br><br>
    <img border=5 width=560 height=650 src="">

    The <b>USD/JPY</b>. returned to our entry point, making us glad we didn't get over anxious and tighten our stop. The trade however hasn't done what we would like it to do. I am looking to simply take our trade off the table now. A move up to 99.60 will trigger our profitable exit. We are also tightening our stop. <i>(below)</i>.

    <img border=5 width=560 height=650 src="">

    The <b>GBP/USD</b> moved almost exactly as we described yesterday, though the pull back is what we expected in a bullish trend, the pair has formed a head and shoulders pattern. A break below the neckline could see a larger move down before returning bullish. A break of the bearish trend line will still trigger a bullish trade. There is plenty of room for this trade either direction <i>(see live trades</i>) so we will give the pair room to play before entering our next trade. <i>(see GBP/USD below)</i>.

    <img border=5 width=560 height=650 src="">