Which way now?

Cable has moved into the 97-98 zone and is stuck in the middle right now. Although the hourly and 15 min have set up potential bullish reversals, I wouldn't be suprised to see further $ strength push Cable back to 97 or lower.

In the immediate term, the Fib on the 15 min needs to be break for me to consider an upside trade.

Watch out for a reaction to US GDP and PMI figures out today.

How about that for an FBR!!

For four days Cable has been undecided whether to take another pop at $2.00 or give up and head south again.

Today just may have resolved the argument with this False Break Reversal up to the 50% line at 1.99 which then engulfed the last three days trading to the downside.

An engulfing candle is one of the most powerful of the five candle patterns I look for. I'm now looking for Cable to seek support between 1.97 and 1.98.o

US$, strengthening or weakening?

Cable rallied nicely on the 1.30pm lower than expected Durable Good Orders but sold off sharply on those very unexpected New Home Sales that came in at 981K against only 860k expected.

Right now I'm looking at a chart that is in indecison but is looking to test this Fib level again.

Back in harness!

I had a great time sailing off Bandol in the Med but frustrating not knowing what the markets are doing.

Cable had a good run yesterday and is consolidating today ahead of the US Durable Goods Orders due at 1.30pm. Stuck at 1.9856 there is potential for a run down to 1.9800 or a new test of 1.9900.

Spoilt for choice!!

Well that Cable trade just kept running and then stalled with a classic Shooting Star just short of $2.00. An excellent move for the remainder of that position.

Doing over things, I didn't then short Cable despite the excellent signal! Can't win them all. My safe trade of the day is the $CAD. Following the raft of economic numbers today the Greenback is on a roll, confounding the $US bears.

We have been spolit for choice but I put the CAD trade on before the trade balance was announced, my stop at '49 just held the strong cporrection following the CAD trade balance numbers that were worse than expected. However, that was shrugged off with a strong up move. The market may well have longer legs. Partial profits taken at the measured move and Fib level of 1.1120 but I'm holding part of the position for the swing on this one.

Will they, won't they?

All eyes will be on the US Interest Rate Statement at 7.15pm this evening. On the run up to this the US$ has been strengthening so when, as I suspect, rates don't move some weakening may well happen.

Cable has started already, the trade of the morning is the bounce from a double bottom at an important Fib gave a low risk trade. Part profits at the 61.8 Fib as shown with the Fib & Click Grid. Is there any more oomph in this one? Maybe, but as part profits are in the bag and with a stop profit on the remainder, I don't care!

Quiet day...

With no general economic announcements of note today the Aussie caught my eye. I'm looking at a short on the Aussie. Last night Australian retail sales figures came in strongly and the curremcy rallied in line.

It popped up to a Fib level and seems extended so a correction is highly likely, a close stops trade and maybe a few pips to be had.

And the trade exits...

Day trading students will have taken at least partial profits on the MPR using the money management system that reduces risk to an absolute minimum. The MPR saw price rally up to the blue line identified by the Fib & Click Grid.

These two trades today resulted in some very respectable profits, These are not 'Hitting for a Home Run' trades that so many look for but so often are in danger of running back, wiping out the paper profits that should have been taken.

By all means hold part of the remaining position for what may become the big move but keeping banking profits along the way.

Swissy trades today

My day trading course students will quickly recognise this chart as it displays two classic set ups.

Firstly it's an overnight range break out trade that is often seen at around braefast time or earlier.

The second is an MPR and note the three drives to a low, the final one happening immediately after the 1.30pm US figures. The market was wrong footed that resulted in a small FBR with an explosive upside move. The entry was either immediatley the reversal started or where the correction kindly took place! Iseldom use indicators much the MACD or Slow Stochastic highlighted a major divergence whilst the bottoning pattern was forming.

Low risk trading

Spoilt for choice this morning, US$ is weakening and Cable is a good trade but higher risk for me than the Jappy. Price has tried several times and failed at the 61.8% Fib and is now testing the old support level of the 119.50 region.

Figures due this morning for Euro Money Supply plus Euro and UK Consumer Confidence. Also important US inflation figures at 1.30pm.

Monday's trade

Cable and the Euro performed very tidily for a useful profit. From the FX Day Trading Course you will see the importance of the Fibs and the patterns at both ends of the move.