Holiday Bonus

An email came through this evening from a trader in Singapore asking if we would send him one of our analyzed charts for the next 5 years on the Euro Dollar (more fondly known as the Anti Dollar on some traders desks).

We don't have any charts with that type of analysis (showing 5 years) but that got us thinking. We decided as a holiday bonus we would provide you all with a chart containing our full long term analysis on the Euro Dollar with a larger time frame for you to work off.

The monthly Euro Dollar chart below shows many signs of reversal. We are not calling a top on this but based on technicals it does look like it may not be far off. We have 5 hitting fib level precisely, MOB showing price & time, reversal candle and a possible divergence with the Oscillator (but don't have a pivot high on that yet). For a reversal we should see a re-test of the high on a lower time frame and a failiure at our fib reversal levels. Should that happen then look for a confluence of events and use the entry stop loss strategy to enter the trade and scale out with profits. Take note of support levels - very important.

If we break the high then we could possibly see further upside, possibly to the (next) figure.

If you are trading the Euro Dollar then please feel free to download this chart as most of the work is complete for you on the higher time frame. Only thing you will need to do is analyze this on a lower time frame.

We here at FXCPS wish you all a Happy & Prosperous New Year.


Chart courtesy of Advanced GET. Data provided by eSignal.

Read more about our chosen software Advanced GET here.


Forex Analysts

Anne Chapman & Javid Shaik

Markets Open Today

Good morning everyone.

I hope you all had a very good Christmas and managed to spend some time with your loved ones.

I finally decided to open the Wii that I have had for the last two months and I have to say what an excellent console it is. I am not really a games player but have the original XBox (played it three times) and the newer one (played once) but the Wii leaves them for dust. If you enjoy games then you will adore this.

Ok, well as for the markets their is not much to report as most of my brokers have not opened for trading yet. The GBPCAD is dealing lower than Monday and if this continues then I will lower my stop loss to lock in more profit. I hope you have all managed gains on this one too.

We will have thin volume right now so do expect big gains to be had at this time of year.

Enjoy the remains of your holidays. Next update will be tomorrow after the markets have opened.

Forex Analyst

Javid Shaik

Christmas Trading

The Christmas period for trading is upon us now and it does not always provide accurate directions. Trading volume will be thin and for me I would tend to stay out of the market until after the festivities are over.

The USDCAD trade has now been scaled out with a small profit.

The GBPUSD hit the 1.9800 mark that was mentioned on this site here. The market chatter now is we could see further weakness toward the 1.9500 territory.

Our next update will be on December 26th.

Don't forget to download your ebook and sign up for our newsletters here.

As this is our last post until after the holidays, we would like to wish you all a very Merry Christmas. Thank you all for your support, charity donations and kind emails. Have a fantastic holiday season wherever you are and best wishes from Anne and Javid.

Click here for Wild Divine

Loonie Resistance

A friend of mine Anil sent me his analysis on the Loonie and as it is worth considering I am updating the site with this. Unfortunately, I cannot use his original attachent as it is too small but I have reproduced it so you can see the daily chart below of the Loonie.

As most of you will know from previous posts on this pair, we have a divergence, we hit 0.618 fib level and TJE and currently on the weekly we have a candle reversal pattern. A trigger is required to enter this trade as we can see we have a 5 wave pattern but the PTI is not good so the accuracy and the validity of wave 4 is in question. Using the entry stop loss technique will allow for the entry to be triggered with momentum.

Hope all of you have taken good profits from yesterdays upate.

Thanks for your update Anil.


Chart courtesy of Advanced GET. Data provided by eSignal.

There is also an analysis below which was from earlier today which you can also read.

Cable Breaks MA

Thanks to Donal yesterday, some of us should have made good returns on the GBPCAD. After we mentioned about shorting this cross it had continued on for further weakness to the figure. At the time of writing this post the drop has been about 150 pips. Would those that took the trade and banked a good profit donate a portion of it to one of our charities please.

The Euro Dollar has dealt around the support we referred to and is undecided at present. Once again, those of you that took this trade and banked a profit (around 200 pips) please please make a donation to one of our chosen charities.

Lastly, we told you back on December 7th that the analysts were expecting the Cable to reach $1.98-$2.00 area. You can reach that update by clicking here. At the time of writing this we are at least 300 pips in profit on this pair. We are in the territory mentioned earlier but we have also broken the institutional moving average. This is a sign of further weakness to come but be aware as this could be traders remorse. Stops should be placed closer and scaling out would be a good option here. The daily Cable chart below shows the break of the MA.


Chart courtesy of Advanced GET. Data provided by eSignal.

All in all we have over the last two weeks produced about £6500. That is a nice profit for very little work so those that read this site and benefit from the updates please help others less fortunate than yourselves at this time of year.

Thank you for your generosity and good luck today.

Forex analysis by Anne and Javid

Pound Canadian

Good morning,

I was speaking this morning with a friend of mine Donal who I know many of you have met. I have known Donal for about year now and he has been trying very hard to consistently trade with profit from one of my strategies. Today it seems he has finaly done it. As he put it, he had an "aha" moment and it has all come together. Donal well done to you and I hope you go on from here to do even better with your analysis and trading.

While talking with him he gave me three analysis and the best of them all was the GBPCAD which I am going to share with you now. I am not going to share the analysis based on my strategy that he originaly spoke with me about, I am going to analyze it in Advanced GET.

The uptrend was halted at the figure zone and had a divergence with MACD and has now broken through the RTC and has now arrived at 0.382 but as we speak it has been getting weaker. If this pattern continues then we could see 0.50 level as the next support. This is
where we may see the reversal or continuation occur.

I have shorted this soon after speaking with Donal and am in profit already. I have moved my stop to break even (although it may have been a little too early) but I am now risk free. The chart below shows the cross for your own analysis.


Chart courtesy of Advanced GET. Data provided by eSignal.

Forex analysis by Javid

Loonie Intraday Resistance

Hi all,

We have been test driving a new car this morning and so have been having fun with that. Prior to just going out on our last cruise in the car we placed a quick short on the USDCAD pair because of a cluster and came back to make a small profit. The analysis is on the chart below for you.

The EURUSD has bounced pretty much where we had mentioned it would yesterday so we should all be in good profit on that trade since Thursday / Friday last week. We will update if we can find any signals on that pair again tomorrow.

Hope you are all enjoying the Christmas period.

Until tomorrow.


Chart courtesy of Advanced GET. Data provided by eSignal.

Forex Analysis by Javid and Anne

Profit Taking

Good morning,

Great to start another week of trading. The EURUSD is now coming towards nearly 280 pips in profit since shorting it and we are now locking in some profits and scaling out. Our reason for this is we are approaching a fib level that could produce a bounce (even if it is small).

We were inundated with email this weekend regarding the Euro trade with some thanks, some charity donations and also some questions on how we analyzed it. As mentioned some time back, our analysis is shown enough for our readers to understand it. Our trading systems and technical logistics are not shown as it would confuse most new traders reading this site. That said, those trying to analyze our analysis will get reasonable answers enough to take a trade. So, dont over analyze the charts and if you did and by doing so missed out on the Euro Dollar trade we highlighted last week then you have also missed out on nearly £3000 profit.


Chart courtesy of Advanced GET. Data provided by eSignal

Javid made a mistake with our mailing server last week and as a result some of you may have had duplicate emails regarding the downloadable book or newsletter. In addition some of you may have not recieved the newsletter as yet. We have resolved the issue and everyone will be getting the newsletter soon. We actually way underestimated how popular this would be and didnt account for a database size big enough to deal with the downlaoding of the eBook. Sorry for any inconvenience to anyone who recieved duplicate emails or even no emails. We would also ask if you could check your spam folder if you have not recieved any (including our automated response) email as yet since signing up. If any emails have gone into your spam folder then you need to add our domain fxcps.com to your "white list" so you can recieve emails in the future without being blocked by your spam filter.

Until tomorrow.

Forex Team

Anne and Javid

Euro Profits

We have not posted an update earlier today as we assume most of you have taken the Euro short trade as mentioned yesterday. That being the case we should all look to move stop losses down to a swing high (plus some give on a smaller time frame) or if you want close and re-open your position again next week. Either way, you should all be in just over 200 pips profit on this pair so don't lose it! If you did not read yesterdays Euro Downside Potential post then please do so by clicking here to give you an understanding as to why we suggested a short.

Finally, congratulations to fellow trader Kenny who has just launched his new online wine merchants: www.thewinecru.com with his wife Kate in time for Christmas.

Best of luck to you guys.

Hope you all have a great weekend.


Forex Team

Anne & Javid

Euro Downside Potential

Since my update on the 10th (click here to be taken to it), we have seen some range bound movement on this pair. Having studied it further, we think we have more reason to believe a downside potential is more likely than upside. This was the case shown on the my system (Metastock chart) and also with basic analysis (Advanced Get chart).

Both the charts below are daily time frame and we are getting ready for short positioning on these. What we would like is a candle reversal and one other reason to add to our confluence of events. This may come in the form on fundamental or technical.

At present the recent mini trend from the 6th December looks like a bearish flag. It is holding at the 50% level so that is good for a coninuation downtrend pattern. We have the first leg, currently in the pause and now waiting for the second leg. If it reverses and does not produce a second leg then stops will kill any major losses.




Charts courtesy of Advanced Get & Metastock. Data provided by eSignal and Quote Center.


Forex Team

Anne Chapman & Javid Shaik

Euro Swiss

I met a friend yesterday who had just taken out a short position on the EURCHF. I dont normally trend this cross because they tend to cancel each other out a lot and tend to go sideways. I had a look at the chart with him and asked him his basis of the short. He shorted due to the range bound movement over the last few months and was using RTC with entry stoploss technique. He has also done extremely well from this since August. So today I thought I would do an anlaysis on this chart.

On the daily chart yesterday we have a reversal candle. Nothing showing on Weekly. The daily is also giving us some MACD divergence and we hit a previous resistance high yesterday. Although I dont use Stochastics as it is mainly an oscillating indicator, in this case as the chart has got range bound characteristics I will use it and the Stochastics shows overbought (but no crossover to the downside yet).

From the previous swing high we are at a fib level and MOB has been tagged and we also had Ellipse hit. Time was shown for the 10th from the recent pivots (not shown on chart).

All in all I would wait a little bit for the market to take the momentum in a short direction before jumping on to this one personally but it I think it is worth putting this on to your watchlist for a potential short.

Once again, this cross cancels itself out a lot of the time and we will see range bound activity and even when it trends it does not trend hard so is not a big trend cross like some others. To give you an idea, since August it has only gone up 400 pips but the lack of volatility on this cross allows for larger than normal positions. However, that suggestion should only be used once you have done your own analysis and are satisfied with your own results and are fully aware of money management.


Chart courtesy of Advanced Get. Data provided by eSignal.

We use Advanced Get and Metastock for most of our analysis. If you do not have these programs and would like a discount version of either of these then visit the appropriate links on to the right of this.

Forex Team

Anne Chapman & Javid Shaik

Market Reversal

The markets reversed early today and most of them at PP's. The Euro and rallied early morning and still looks like it has bullish tendencies (refer to yesterday commentary).

Prior to FOMC later we should expect range bound activity due to indecision.

I will be awaiting the news then will make any new trading decisions.

Euro Analysis

I am very sorry for such a very late update today. Coming up to Christmas it has been a little hectic.

I have done an analysis for a friend of mine who I had spoke with this morning and I thought you might also find it useful.

The weekly chart shows a reversal candle at the figure with divergence.



The daily chart also shows a reversal candle at the figure with divergence . Nine days later we have a hammer reversal at a fib level and as you can see the Euro has rallied.



Two schools of thought here.
1. We are heading up from a reversal at a fib level which is a continuation.
2. This is nothing more than a breather before we contiue the downtrend.

At this moment either of the above could be right. To identify which it could be we need more confluence of events and right now we don't have them. As and when they start to appear we need to take not of them and put the odds in our favour prior to taking a direction. To give away one such strategy, take the high to the low and wait for the price to hit a fib reversal level (if it goes that high). If a level is hit with a reversal candle then you have a confluence. The odds are beginning to be in favour of a short position now. However, if those level are breached then wait for a break and close above the high for continued strength. This is where a good entry stop loss needs to be placed. To do this look down the time frames to something lower.

The above chart are all courtesy of Advanced Get which if you do not already own it you can read more about by clicking here.


Forex Team
Anne Chapman & Javid Shaik

Rate Decision and Economy

The BoE rarely change rates in December.

The ECB shortly afterwards decided to leave it's rate unchanged.

The BoE and ECB are Europe's top two central banks and the split decision is likely to result in volatilty and we could be taken on a pulsating roller coaster ride over the next few weeks or even months.

City analysts are now advising not to buy Euro above $1.46 and the GBPUSD downside has increased with expectations of $1.98-$2.00 figures. Historically the GBPUSD gains strength during December but also historically we do not get rate cuts this month so we could assume this may not turn out to be a typical December. One of my systems is on the cusp of a sell signal for the Euro but I think it will be determined by NFP today.

The market chatter and wide expectation was for the BoE to cut rates, it is very unusual for this to take place in December. So why did the BoE cut the base rate to 5.5% down by a quarter point?

The answer could be within the following factors.

1. British housing market could possibly be more vulnerable than our US counterparts.

2. British banks are in more danger than the US.

3. The economic structure in Britain is less stable than the US.

4. Lastly, the Federal Reserve has been quicker to react to the credit crunch than the BoE.

Any or all of the above factors could have been the reason behind this.

With th GBP possibly weakening we may see carry trades unwinding so if interest differential is your basis of trading, I would be extra cautious.

Now I dont want to sound all doom and gloom that the world economy is crumbling and we are heading for a universal recession. Far from it. This is possibly one of the best times to be trading. Did you know that the richest 1% in Britain hold more than 25% on the household wealth? Take a trip down to the city and you can just feel the abundance of money passing around. Vince, a friend of mine from Denver always comments on how many supercars are in London around every corner. London hosts the worlds premier financial markets. Getting back to the economy, this is one of the best times to be trading. While everyone around you may soon be complaining about the interest rates, expenses or general lack of wage, you could have a permanent hidden smile on your face by accruing big incomes from the markets. There are some excellent ways to do this and if you are interested and enjoy trading then take full advantage of the times ahead.

We have NFP today so no positions have been opened ahead of that. The expectations are split so whatever the result, many will have major losses today. Add that to yesterdays news and we could see some heavy volatility. Today really is not a day I choose to trade.

I was stopped out on my USDCAD for no loss yesterday.

Have a good weekend. The week has come to an end so we will be back on Monday with a chart analysis.

Click here to sign up to our newsletter.

Forex Team Anne Chapman & Javid Shaik

Loonie Hits Trendline Resistance

The Loonie could be at a pivot and we have a confluence of events.

The weekly chart shows the price rally past the figure and on to the trendline. We also have a Doji at the moment but ofcourse the week is not over. In addition we have divergence.

The daily chart is showing a Doji and the price has rallied to a 618 fib and has divergence.

The 4 hour shows a reversal candle at the figure and divergence.

The 1 hour shows a reversal candle at the figure and divergence.

The 15 minute has price resting on the 200 MA as I write this so we want to see what happens here as this is the first line of support on the weakest time frame.

I would add a RTC on the daily chart and analyze the breakout bar if and when that occurs for your longer term entry stop loss.

Short term, you would already be short if you are an aggresive trader and had spotted this set up today. You now want to see a breakout bar below the 200 MA and analyze that. On all the other major time frames the 200 MA is quite some distance away leaving enough room for profit should this break down further.

Regardless of this being a w4 or w1, look for fib reversal from the last low to last high for a reversal or continuation. However, if we break that trendline then a fresh analysis needs to be performed assuming it is not traders remorse.

For those of you who are aggressive traders and spotted this set up today, you will already be finishing the day with good profits so well done to you all. Although I did see the set up I was unable to take the trade in time today but managed to latch on to the latter part of this short and am now risk free on this position. This allows me to leave the trade open overnight without a concern of a loss and through to Friday if I do not get stopped out.


Chart courtesy of Advanced Get. Data provided by eSignal.

Forex Team Anne Chapman & Javid Shaik

Yen Downtrend

The USDJPY is already in a downtrend and is being supported by further weakness on the daily chart with a breather fib level and on the 60 minute chart by the 200 MA resistance. XTL is red and if the downtrend continues we should have 105.50 in our sights. Of course all this is also dependent on NFP. The first chart below is a weekly followed by a daily.

Charts courtesy of Advanced Get. Data provided by eSignal.

Next newsletter will be on it's way later this week. If you have not already done so, download your free eBook.

Forex Team

Kiwi Fib Reversal

The NZDUSD is at a fib reversal from the recent weekly swing high to the last swing low. It also produced a cande reversal at the figure. All these factors show for a reversal but time does not show until December 21st. Shorting opportunity with a tight stop is possible but pleae do your own analysis.


Chart courtesy of Advanced Get. Data provided by eSignal.

FXCPS Team

Trendline Support

Welcome to another trading week and generally one of the biggest stock market rally months. December we tend to see the Santa Cluas rally which usually provides an uptrend prior to Christmas although that has not always been the case in recent years.

Cable is continuing it's uptrend and the Doji from a few weeks ago halted the upward trend temporarily, this pair is still climbing.

The divergence us a concern and although I think we could deal much higher so I would look for some form of support. I have drawn a trendline as a basic level of support on the weekly chart. I used a weekly chart to cut out small time frame noise and whipsaws as we could be in for a volatile month. Historically Cable tends to gain strength during this month and weakens in January.

Below is the weekly GBPUSD chart.

Chart courtesy of Advanced Get. Data provided by eSignal.

FXCPS Team