And the CAD reverses

A timely call took some profits on the CAD and then my remaining close stops were taken out and I've reversed my position following the dramatic hammer today.

Friday update

The CAD stop and reverse signal never came so if you are still short, take some profits and enjoy them!

The main economic figures today at 1.30 are US Core PCE Price Index, CAD GDP and at 2.45 and 3.00pm US PMI and Consumer Sentiment. Plus some Euro/UK consumer confidence and Euro CPI this morning. The US figures have the most potential to move markets.

CAD Channel continues

The CAD has been a channel play for some days now but with with higher lows. The Slow Stochastic helps to identify oversold and overbought areas to time trades.

A mixed day

US figures failed to inspire the US$ in either direction so it ended not far from where it started.

Several trades presented themselves on the Euro and Cable of course but the better behaved pair for me today was the Jappy with three trades during the day. Look at the MPR's on the charts and there were pips for the taking, although I will admit to not getting out without a loss on the false break of Cable above $2.00!

Cable slices thro $2.00

The down move came to an end with the 15min engulfing candle (first arrow) and that was the first buy signal. The second came at the next arrow with inside candles followed by the strong upmove.

US New Home Sales are announced at 3.00pm together with Consumer Confidence figures. This will either help the run up to $2.01 or stop the run in its tracks.

Contra-think

Cable is breaking out of the overnight range this morning following through from yesterday. If this US$ strength gets moving Cable has the potential to unwind the recent strong rally.

Cable update

No follow through puts Cable at risk of a False Break Reversal. If the uptrend line breaks we could see a rapid retreat.

$2.00+

The main four pairs started the morning with US$ strength with some useful pips taken from the Euro and Swissy.

The bigger picture is now coming back in with Cable wanting to continuing its run above $2.00.

The morning moves

Right now we have seen a major break with the Swissy right on 7.00am that has yielded 30 pips so far. Both the Euro and Cable have broken out and have staged theor pull backs which may well be the buying opportunity if 1.9930 holds.

The Yen as ever is doing its own thing and continues to weaken across the board. Take a look at a weekly chart of the NZDJPY and just look at it fly for a massive capital gain plus the carry trade interest rate differential.

What a great correction

The USD CAD has now unwound it's overbought state dropping back into my original buy zone and again price seems to be be basing here this morning.

Notice how the Colour Charts and Gravity Dots have changed color.

Check out http://www.forexfactory.com/ for the Economic Announcement calendar. Today CAD Wholeslae Sales and Leading Indicators come out at 1.30pm GMT, these are not classified as major numbers but could have a modest impact this afternoon.

And the CAD bucks the trend

Whilst the main pairs are strenghtening against a weaker US$, the CAD is going the other way.

Charts are showing the daily 10 day MA moving up for the first time since mid March and this today has given us a classic morning move with plenty of evidence to base the trading decission on.

Logon to http://www.tradersclass.com/ for the video review of the morning trade.

Thank you Toshihiko Fukui...

Whilst three of the majors mark time this morning meandering within ranges, the YEN weakened nicely in anticipation of, and after, comments from Bank of Japan (BOJ) Governor Toshihiko Fukui.

This morning move kicked off from a classic pattern with Fib that I use most days.

Is the US$ strengthening!?

A resounding yes is the correct answer. At least it has been and looks set on its trend. Bonds have been falling with consequent higher US interest rates and so it became inevitable.

A glance at the Big Four on this 15min chart shows the gift of trades on Cable and the Euro performing perfectly based on my usual trade criteria.

The Jappy continues its slide, remember all that talk of a strengthening Jappy? its now a distant memory.

UK retail sales figures due at 9.30am and at 1.30pm beware of the US PPI number.

On the move

Both the Aussie dollar and Canadian are showing signs of weakening - at long last!

These have been on my watch list for about a week. Whilst the fundamental story on both economies favours strength, the technical picture is gradually changing.

I'm day trading these and also holding part positions over as both of them just might go for a longer run.

A useful morning run

The Swissy continued its run this morning with a classic false break reversal.




The break out stopped spot on the Fib and previous days pivot resistance that became support. Colour charts and Gravity line then helped with the early entry.

An FBR?

Wulst the excitement this morning has been with the Swissy for the early morning trade followed by Cable collapsing in anticiaption of no change for UK interest rtaes, the AUD is now looking interesting.

The pattern is a False Break Reversal. An attempt has been made at a new high. This was followed by a classic Multi Point Reversal with a tight, short entry at 8467 and stop placed at '75. The moves nust break below 8450 to confirm.

Will the USDCAD make it's move?

This one is still on my watch list having failed to fall any further. The long term down trend is looking extended and has faltered now for several days with 1.0550 the current floor.

I'm looking for at least a bounce that will take the daily back to touch the moving average on this chart and maybe much more. So far, there is not enough drive to move out of this 90 pip trading range but if the bounce happens it could be a sharp one.

AUD stop and reverse

The chart pattern decide not follow thro' on the downside so the postion was closed for a modest 18 pips. However, for night birds the main move kicked of at midnight.

Most of us would have been in slumberland so this was one of those that got away. There is always another day and the markets will always be there!

This morning it's the turn of Swissy to make the running.

AUD

Thew AUD has rsien strongly over the last seven days, pushing thro' the April highs.

However, price action today has set up a classic MPR that has an initial potential of at least 20 pips. Lets see how it plays out.

The first cut is the cleanest..

Well, they don't all work and when the follow thro' fails the trade plan is there to take the trader out without a second thought. The exit signal was flagged up and position closed for a few pips loss.

The CAD is on my radar

The USDCAD pair has given me five buying signals this morning, see how many you can spot on the chart! Drop me an email george@clickevents.co.uk

My next FX Day traders course this month will show you how to use these signals and just why these special colour charts and gravity bar work so well with Forex.

A line in the sand...

Cable had a an excellent run up from yesterday and has now completed an a-b-c pattern that is also a classic 'measured move'.

The daily chart also shows how price action today could develop into another classic 'Shooting Star' if price ends the day with a long tail above the main body. (log on to Tradersclass.com for a full explanation of the main candle patterns).

If - the $ is now about to strengthen then I'm very interested in the USDCAD pair. The chart is is extremy extended and a bounce for the US$ from these lows could be an interesting move.

Monday morning

Last Friday saw the usual Non Farm Payroll mayhem with Cable whipsawing several times through 60+pips before starting an uptrend that is still intact.

I'm staying with the trend whilst it runs but ready for any reversal that might kick in.