FX markets are on the move again
Friday’s economic reports, global unrest in the Middle East affecting oil flow
and other fundamental pressures broke USD values against most foreign pairs.
Conditions were ripe for a breakout, all that remained to be seen was enough
excuse to break through technical price ranges. From now into FOMC meeting and
beyond should offer solid profit potential in every major FX pair, and others as
well.
Trend View:
GBP/USD (+$10 per pip)
British Pound gave initial buy signals last
Friday near its 7600 level. Two small pull backs before the weekend close and a
bigger one in the overnight hours all continued higher in early breakout
fashion.
We should expect to see price action work its
way toward the 7950 ~ 8000 level as noted in our weekend review section. Pull
backs today and/or overnight have high-odds potential to those upper magnet
levels as the next decision point.
EURUSD (+$10 per pip)
Eurodollar likewise gave long entry signals
near 2100 on Friday, launched straight higher and offered one continuation pull
back overnight. Upside target near 2550 is probable in the next few sessions to
come.
USDCHF (+$8 per pip)
U.S. D. / Swiss Franc pair went bearish Friday near 2840, now trading some +250
pips lower from sell signals. The 2320 level is a probable magnet below.
USDJPY (+$9 per pip)
USD-Yen signaled sell near 115.20, paused for
pull backs into 114.80 and continued on down overnight. 113.50 is the most
likely area of attraction for this market to head towards from here.
Summation
Currency markets remained sideways for the past couple of weeks,
rolling sideways in coiled fashion. We all knew that could not last forever and
made note of breakout potential pending in the previous post here last week. The
most probable scenario is a sideways consolidation and/or pull back to 38% of
the recent breakout range before continuing in direction ahead.
Upcoming non-farm payroll report, other econ
news and the monumental FOMC report on the last day of this month all have
potential to keep the currency markets moving. Taking trades in direction of the
current directional trends should pay off handsomely, with all pull backs
offering high-odds continuation trades until price targets noted above are
reached.
Trade To Win
Austin P
(Online video clip
tutorials…
open access)
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.