Forex Video | New York Session Review | December 3, 2008
Saturday, September 12th, 2009
A record-low US ISM services figure failed to discourage equity markets, which rallied during the hour following that news release during today’s New York session. The rise in stocks was accompanied by a drop in T-note futures, indicating an increase in risk appetite among global investors. In that scenario, the Japanese yen tends to weaken, which means up for the yen crosses. The EUR/JPY currency pair delivered, providing a classic trendline re-test before climbing 140 pips to the 200 ema on the 15-minute chart.
Duration : 0:12:58
StrategyDepot.com Forex Trading Strategy presentation. Visit us today at StrategyDepot.com for Unlimited Access to all Forex Strategy eBooks, Forex Training Articles, and MetaTrader 4 Experts.
Risk aversion had been the primary theme in global financial markets during today’s London session. An attempt by bulls to wrest control from the bears after the release of better than expected US news proved futile during the New York session. Traders who waited patiently for the post-news volatility to subside before shorting the EUR/USD currency pair, were rewarded with a profit of at least 90 pips before the London close.
The day started with a great USD trade and ended with a great CAD trade. A good day indeed. The market must have read the textbook! We waited and waited for confirmed currency correlation between the majors with a break of the 200 EMA across the board. Pivots and Fibs helped find the target. The CAD trade, based on the oil report, was a great 38.2% retracement to 161.8% extension for the CAD/JPY. The USD/CAD hit the S1 and stopped at the same time we were topping out on the other pair. Beautiful.
The FOREX market was set up for a short-term reversal. A 1-2-3 Pattern or Inverse Head & Shoulders Pattern was very likely. These forex candlestick patterns are common after a crazy Non-Farm Payrolls release on any large range trading day. Its a way for the forex market to breath and recover. Live FOREX Training | EVERYDAY! http://www.fxbootcamp.com
Rising risk appetite has been the dominant theme over much of corporate earnings season. For the EUR/JPY currency pair, that has translated into an up day on 3 of every 4 trading days over the prior four weeks, and another up day was in the making at today’s New York open. The release of an awful US retail sales report changed that in a hurry. During the three hours after news, the yen managed to recoup its losses against the euro. A short trade setup, discussed some 30 minutes in advance, ultimately produced a profit of up to 100 pips for those traders who waited patiently for the post-news retracement on the euro yen.
The USD is still growning strong. However, today’s CPI could change that. The FED, along with FOREX Traders, are watching for any signs of inflation. Today’s TICS data also could have an impact. In the end, price ended right where you’d expect it to… the M1 Pivot Point. Live FOREX Training | EVERYDAY! http://www.fxbootcamp.com
Great forex currency correlation today. This helped us trust our forex pivot points when creating our forex trade plan for the day. Once the M4 held the GBP up, the EUR was cleared for take off. Resistance was broken and profit levels at the forex Fibonacci Extensions of 138.2% and 161.8% were achieved. Live FOREX Training | Everyday http://www.fxbootcamp.com
Everything but the Cable started flat today before the news. The markets then jumped on the release of PPI and Retail Sales. However, the results were mixed. Too bad! The markets were ripe for a big move today. It just didn’t happen. EUR/USD hit R1, dropped to S2 and returned to the Central Pivot Point. The key to the entire reversal was the Upper Bollinger Band on the GBP. Turned the market from Bullish to Bearish… finding bottom at the 138.2% Fib Level. This was also the M1 Reversal Pivot Point. Live FOREX Training | Everyday! http://www.fxbootcamp.com
The market wasn’t moving that great today. However, the GBP and the CHF both moved in predictable ways during the Asian and European sessions. Other than that, it was a tricky range bound day. For these trades, Fibs and Pivots we essential trading tools. Live FOREX Training | Everyday! http://www.fxbootcamp.com