EURZAR

Chart courtesy of Dynamic Traders. Data provided by Quote Center.

A friend of mine has just alerted me to this cross. Simply put, the cross is trading in a narrower range and at some point we will see a volatility breakout. I would consider putting this on to your watchlist. Thanks for that Barry. By the way, if anyone in the UK had turkey for Christmas lunch then extend a thanks to Barry as he spent nearly a month prior to Christmas catching about 400 turkeys per night. Whenever I spoke to him prior to the holidays he pretty much cut our conversations short as he told me it was turkey night.

Ok, I will not be posting again until next week on Thursday now.

Have a good week.

Support & Resistance

PP created from ESignal data. Chart courtesy of Metastock.

The first column is Euro support and resistance for the day and the second column is for the Cable.

The USDCAD is still a consideration should it hit our fibs.

EURJPY is worth a revisit from my original analysis sometime ago.

I will next update on Thursday.

Euro Dollar

Chart courtesy of DT5. Data provided by Reuters Quote Center.

As you can see the Euro has moved up nicely this morning and broken above the 13050 resistance. If you have any short orders to open below 12900 then they should be cancelled for the moment. However, right now the Euro looks like it is getting ready to produce a chart pattern reversal. Look for a candlestick and PP to confirm that for a day trade. Swing trade perspective is a bit hazy on this pair due to the range bound continuation so best to look for volatility breakouts above the high and lows on the larger time frame.

The USDCAD pair at present is still a good contender for a wave 5.

Good luck today.

Sterling Dollar

Chart courtesy of Dynamic Traders. Data provided by Esignal.

This chart is for Spikey a friend of mine who asked about todays reversal. As you can see, we had a morning reversal with a Doji at a PP and then the market had dropped the equivalent of £800 in less than 2 hours. The trade should have been taken immediately after the Doji was created so at 8.15am and not when the move down had started at 9.45am as that was just chasing the trade and although that can work, quite often you will find you end up getting the tail end of the trade and miss out on the big move itself. Stop ideally would have been placed around 19529 for the short position.

Canadian Dollar

Chart courtesy of Dynamic Trader. Data provided by Reuters Quote Center.

Good afternoon. Once again I apologise for the late post but I can tell you that I managed to recover all my files from my old battered laptop and that is now ready for the dustmen to collect on Thursday morning. Importantly I am now up and running again so the posts from now should not be so late in the future.

Ok, the chart above is the daily USDCAD pair. Last week we were just short of 1.618 for the possible wave 3. If the pair continue to move downward toward either 0.382 or 0.50 and settle there before dealing above the local high point with a volatility breakout then this could be the beginnings of a wave 5 and if that is the case you might want to consider a bullish bias for possibly some time. Idealy we would like to see a candle reversal at the fibs.

If we dont go to the fib lows but then start the uptrend again then it is likely wave 3 has not completed and we could expect to see 2.618 being pestered.

Keep a close eye on this pair. I mentioned it originally late last year at the beginngs of wave 3 and we went up about 700 pips since then. If we have a good set up on this for potentially a wave 5 or extended wave 3 then dont miss out.

Before placing this or any other trade, please ensure you do your own analysis and are happy with your decision before taking a position on the market.

Good luck.

Laptop and Euro

Sorry for the late post this morning. I dropped my laptop yesterday and now have a defective screen so have been busy copying over my files from that laptop to another. Have not completed it all as yet so not managed to take a screenshot of the Euro.

The Euro this morning produced a fib reversal and a candlestick reversal at our reversal time. We had a confluence of events and it should have been an easy decision for everyone who saw that to short the market at that point with a tight stop. For those of you that have taken the short should be smiling with a few hundred pounds profit by now. Unfortunately I was unable to trade that because of my laptop issue.

Tomorrow I will update in the morning with a chart or two for you all to have a look at.

Happy trading.