4 Currencies To Watch Today
Currency Outlook
Great Morning!
Welcome to my corner of the FX arena.
Currency markets have been red hot for months now, especially the major pairs I
trade which are profiled in here. With decades-low volatility in
stock index markets right now, it is a pleasant change of pace to trade markets
that still make big swings and extended trend moves.
EUR/USD (+$10
per pip)
Euros gave the latest buy signal near 2200,
then dipped to 2180 before lifting a bit from there. That buy signal remains
valid into the morning ahead, and 2170 zone should hold any deeper pull backs if
near-term upside potential remains intact.
GBP/USD (+$10
per pip)
British Pound gave its latest buy signal near
7665 and rolled upward thru the overnight hours roughly +80pips in favor of the
latest signal. 7670 would still be a valid buy signal if touched later this
morning.
USD/CHF (+$9
per pip)
Swiss Franc also gave an overnight sell signal
at 2780 which likewise went in favor of the trade. That mark remains a valid
sell signal into today, with 2820 probable to hold any deeper pull backs into
resistance there.
USD/JPY (+$9
per pip)
The Yen offered midday sell signals near 112.20
before dropping nearly +90 pips in favor of those signals. Next point of
resistance to target from here would be 111.85 area on a lift into there. 110.80
is a likely target below, so there is still plenty of room for potential profits
remaining.
(price levels posted in charts above are compiled
from a number of different technical measurements. Over the course of time we
will see these varying levels magnetize = repel price action consistently)
Weekend’s Forecast
Last night’s FX post included chart predictions made on
Saturday evening. I made a mistake in sending the wrong images with that
article: by the time it went public, the markets had already made their moves. Let’s review
the weekend market outlook and then see how it all played out in real-time from
there:
EURUSD “Euros are trying to step their way up the chart
for a bit. Another tap of 2080 area is likely to bounce higher, while a break
below 2080 confirmed (bar/candle close below) should retrace much of last week’s
gains.
GBPUSD “Another tap of 7520 should hold, and buy
signals on trade charts at/above there would be likely to work. If candles close
below 7485, all upside bets are off and we start swinging for short trade entry
signals below there. A breakout above 7580 would be considered quite bullish,
with long trade signals at/above that mark probable to work much higher into the
week.”
USDCHF “Swiss Franc closed near 2885 short-term
resistance, is on buy signals above 2930 or sell signals below 2840. This one is
my second preferred symbol to trade… moves methodically and confirms GBP moves
of sizeable potential.”
USDJPY “The Yen can be quite “buzzy”
when it consolidates, a challenge for holding stops in short-term trade chart
setups. That said, it is bullish above 112.50 and bearish below 112.20 for new
trade signals.”
Simple Methods… Simply Profitable
Compare those chart signals with what ensued and I think we’ll see that
price action hit those marks and made significant profit moves. The trade tools
I use, developed with my trade partner Russ Moore are simple enough for anyone
to grasp in a hurry. From there, it is just a matter of learning to manage trade
stops = exits and maintain correct money management for methodical, long-term
success.
Big Pairs My Preference
My personal preference of FX symbols are GBPUSD
and CHFUSD, because they are usually much more dynamic and methodical in
behavior relative to most other pairs. The EURUSD is obviously most heavily
traded, but I find it to be spiky and somewhat muted in price range compared to
GBP and CHF. Regardless, whatever one opts to trade is perfectly
fine. I play in the GBP and CHF at least 90% of the time… that works for me.
Adding some EUR and JPY trades when clear signals are hit crisply keeps the
account busy enough without looking further from there.
Summation
We measure price action from a couple
different views, and zoom in on key points of decision in the chart. Times when
there is a lack of clarity usually means sideways to choppy price action is at
hand. Trend and big swing moves as we’ve enjoyed lately are a breeze to trade… may
the major FX pairs keep on rockin’ & rollin’ like this for endless months to
follow!
Trade
To Win
Austin P
Austin Passamonte is a full-time
professional trader who specializes in E-mini stock index futures, equity
options and commodity markets.
Mr. Passamonte’s trading approach uses proprietary chart patterns found on an
intraday basis. Austin trades privately in the Finger Lakes region of New York.