Friday, May 20, 2011
Ichimoku Online Currency Forex Trading Strategies For Day Traders
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Ichimoku Kinko Hyo (Pronounced: Ichiii...Mooooo...Kuuuu) is a technical trend based system that powerfully illustrates support and resistance values in a simplified form and is considered an extension of the very popular candlestick charting system. In fact, this system was built on the idea that at "one glance" you should be able to easily determine whether an instrument is in equilibrium (consolidation) or out of equilibrium (trending).
Forex Video Technical Update 5/14/2011 - Scenarios in the AUD/USD, AUD/JPY and AUD/NZD
http:/./www.fxtimes.com - Forex News, Analysis, Education, Webinars, Live events, Charts, Videos, and more.
original article: http://www.fxtimes.com/?p=38898
The Australian Dollar has been dominating the currency markets with its correlation to gold as well as support from a relatively sound economy. Against the USD, the Aussie has been consolidating since the start of May, and is on a 3-wave decline. The AUD/JPY has been consolidating since April 10, after a rally form Mid-March. It is in medium-term ranging mode with some short-term bearish bias. Meanwhile, the AUD/NZD has been consolidating since March 7, and is in a short-term bearish attempt. Lets take a look at these charts.
AUD/USD
- The AUD/USD was turned from 1.07 after a initially rallying from support factors. The failed rally attempt represents the intent of the market to hammer at the current support cluster right above 1.0500.
- The strong bearish candle suggests the bearish continuation through the 1.0500 level. If this materializes, the next support cluster is right above 1.0400. A wave equality projection targets 1.0415.
- Looking at the daily chart shows that the 50% retracement of the March rally is near 1.0350. If the market is bullish from either 1.0415 or 1.0350, the bearish scenario will be tested with resistance near 1.06. If the market remains below 1.06, the next support is near the 1.020 (61.8% retracement) level.
AUD/JPY
- The AUD/JPY is heading back towards 84.30, the May low. We see that the 4H RSI remains below 60, and is attempting to break below 40 towards 30. This is a sign of bearish continuation.
- IF the market breaks below 84.30, a wave equality projection targets 82.88, which is where the 200SMA reside in the daily chart.
- The market is in medium term consolidation, but can turn bearish if the 80.00 level (near 61.8% retracement) does not hold. We can then targets 75.00.
- Note that the market is ranging. A concept of the ranging mode is that the further the market is from mean price action, the more likely it will reverse back towards it. Right now, the mean price action represented by the 200SMA in the daily is near 82.88.
AUD/NZD
- The AUD/NZD pair broke below a rising trendline this past week, stalling an attempt to retest the 1.38 high. The RSI reading in the daily chart shows maintenance of the bearish momentum. A swing projection targets 1.3090. also a pivot back in January and February.
- Although the daily candles represent a bearish dominance at least in the short-term, a full swing projection might not materialize as there is a support cluster at 1.32. This is near 61.8% retracement and the 200SMA in the daily chart. If the market is able to reach the 1.3090 projection and subsequently remains below 1.32, it can slide towards 1.28.
- On the upside, if the market breaks back above 1.3520, there is a chance the market is simply flattening with support at 1.34 and resistance at 1.37. A break above 1.37 eyes 1.38, above which, the market eyes 1.42 in the medium term.
Fan Yang CMT
Chief Technical Strategist
FXTimes
Information and opinions contained in this report are for educational purposes only and do not constitute an investment advice. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness. FXTimes will not accept liability for any loss of profit or damage which may arise directly, indirectly or consequently from use of or reliance on the trading set-ups or any accompanying chart analysis.
Thursday, May 19, 2011
Forex Trading Strategy #EUR - The Perfect Scenario!! #forex
The Euro is following the Gemini analogy to perfection projecting a spike up to 1.4395 before the downtrend resumes aggressively. (Ref: 5803)
Tuesday, May 17, 2011
Monday, May 16, 2011
The IMF, World Bank, and G20 for Forex Traders
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Visit http://www.informedtrades.com to learn more about this subject and the trading of financial markets.
Saturday, May 14, 2011
Forex Alert
http://www.ForexConspiracyReport.com - Forex Alert
A Forex Alert service is a useful means of finding the most profitable currency pair to trade for the day. A Forex trader may have all of the skills necessary for profitable technical trading but if he is in a currency pair that is trading sideways there will be little potential profit. The trader may have studied the fundamentals of each currency in a trading pair and may anticipate profitable price movement. However, that price movement may not be occurring today. If a trader is buying Yen with British Pounds and the US Federal Reserve Chairman makes a statement about raising interest rates a Forex Alert service will alert the trader and allow him to move into a major currency pair that includes the US dollar in order to have a shot at profits as the market reacts.
A Forex Alert will be based upon any of a number of things. It may be something from the news such as the breaking reports of the Japanese earthquake and tsunami. It may also be a follow-up report such as the recent statement by a leading Japanese banker about the fact that the Japanese economy may take more time than expected to recover from electric power shortages caused by nuclear power plant shutdowns. When Japanese investors started bringing home assets to pay for reconstruction the price of the Yen went up dramatically. A Forex Alert could be the first report of substantial upward price movement of the Yen coupled with a high USD JPY trading volume. It could also be a report from the news when the G 7 financial ministers announced that their nations would intervene in the markets to the degree necessary to stop the rise of the Yen.
Although a trader may use a Forex Alert to guide where he trades, the trader will still need to know, or learn, the fundamentals of the situation that caused the Forex Alert. He will then also need to apply his skill set in technical trading in order to profit from being in a now volatile trading pair. If, for example, the US non farm payroll report states than there are more jobs in the USA the trader will need to understand that, usually, this means a stronger US economy, and a boost to the US dollar. Then he will need to look at how the market is reacting to the news, consult ongoing technical analysis, and trade accordingly. It is wise to remember than when one currency is rising or falling in relation to another than someone wins and someone loses in every trade, at least in the short run. When the trade is made the market moves on. Simply being in a volatile market is not enough for profits. The trader will need a trading strategy which he has back tested against old, historic data. Then, when confronted with a new trading situation, he will have a plan. When he has traded in such a situation it is also wise to review results. It is typically through reviewing trading results, profitable or not, that traders improve their trading skills, and their profits.
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