Stock Markets Selling Frenzy

Two sections to todays analysis.
1. Stock Markets Selling Frenzy
2. Range Breakout

We had a signal on our mechanical trading system for shorting the NZDUSD on Friday. Since entering the position we are now locking in profits. A break of the 200 moving average could be followed by further weakness but could also be followed by remorse. If this is indeed a fake out then losing profits gained at this stage would be insane so if short on this pair, it would be advisable to manage this trade now. We also reached the Ellipse which adds to the confluence.


Chart courtesy of Advanced GET. Data provided by eSignal.

The Euro Dollar produced a 200 pip move today and from when we updated the website it moved another 80 pips so those that took the short on the Euro should be in very good profits and should also manage this trade. This pair is in our sell zone but we have time on the 23rd January so please be aware of that just in case of a reversal. 1 Hr and 4 Hr are producing convergence with MACD. Next big support in the region of 1.4300.

Below is a daily USDCAD chart. We have added it to show you a confluence. Use our entry stop technique to trigger this trade for a continuation or reversal to filter any fake outs.. You could add RTC to the recent uptrend and use that for a break down and the 200 moving average for the breakout.


Chart courtesy of Advanced GET. Data provided by eSignal.

Below are new entries.

Sell Zone
AUD USD
NZD USD

Buy Zone
GBPNZD

The FTSE fell 323 points. This is the worst drop since 911. Germany and France saw even bigger drops. We could see a very horrible opening to the US market tomorrow. Stock traders are rushing to sell. Scared selling is typical when fundamental news from around the world is certainly not encouraging. While millions are being wiped off the stock markets, the currency markets are are still performing well based on our fundamentals and technicals.

Many analysts were speculating the Euro Dollar would be breaking it's previous all time high at the beginning of this month. That could still be true but the technicals were showing possible weakness which we showed you on our chart in December. We also called a short on the Pound Dollar for this month and that has fell more than 500 pips.

Those of you who took out a short swing position on the Euro Dollar or the Pound Dollar based on our analysis will be in very good profits in less than a few weeks. In fact profits would exceed a couple of months salary so we would ask you kindly to make a donation to one of our chosen charities in the usual way. Please remember the concept of abundance and take a moment to make that donation. Thank you for your help.

Forex Analysts
Anne Chapman & Javid Shaik