FXCPS

Forex Chart Pattern Signals

Friday, December 08, 2006

Busy Week

Sorry for not posting the last couple of days but I have had a very busy week.

After consolidating the last few days, the Euro and Pound should make a big move in either direction today. We have news due out at 1.30pm GMT and that is what the curency market has been awaiting all week. Expect a lot of volatility.

I will post charts this weekend.

Good luck.

Tuesday, December 05, 2006

News

We have a couple of volatile news items due out today (and during the week) so it would be best to await for them before deciding a position.

The 13 Euro Daily is overbought but the 8 Daily is currently looking like it is going to produce a bullish cross so in addition for waiting for news, wait for a possible overbought or bearish crossover on 8 before taking up any shorts.

As for a long position on the Euro (although there could still be some strength left), from the analysis it does not look like a long is worth considering due to the possible limited upside potenial.

8 and 13 Weekly are overbought on the Euro. Remember, the larger time frame dictates what happens to the smaller frames.

Al the best & good luck traders.

Monday, December 04, 2006

New Trading Week

Morning all,

I checked the Comms and they still seem to have orders to open as shorts on the Euro.

On Friday I was asked how I perform my analysis and why the Euro has still risen even though I have stated it is overbought a few times now.

Last week the Euro was in an overbought position on most time frames and the DTOsc also showed the same. We also had a confluence of events (I wont list them all right now) so on this basis the bias was down. However, the end result is governed by the markets and not by the indicators and unless we start to gamble and use wayward techniques or blind techniques to decide to go long and short, we can only go by what we see and the market has shown us it was overbought. Comms were also ready to open shorts so the fact the Euro went up against our analysis is not a problem except for any short term losses that may have been acquired. Xmas is also sometimes a difficult period to trade so for those that feel the market has moved against them and they are unsure what to do right now then perhaps trading again inthe New Year would be a better option due to possible choppiness in December.

Deal below swing low with DTOsc in overbought region are shorting possibilities.

Deal above swing highs with DTOsc in oversold region are long possibilities.

Euro is still showing some strength at present so wait for swing low break for any shorts otherwise the trend is your friend.

I will post charts again when we have something new on the Euro.

Good luck everybody.