Here’s my JPY entry
Dave Floyd is a professional FX and stock trader based in Bend, OR and the
President of Aspen Trading Group. Dave’s approach to FX combines technical
and fundamental analysis that results in trades that fall into the swing
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Friday’s FX Observations
The Dollar Index (DXC) is still attempting to bust through some key
resistance at 89.55, a level that has proven to be a real challenge in recent
sessions. The PPI and retail sales data, due out at 5:30 AM PDT will
likely provide some much needed direction.
The chart below illustrates a trade that we legged into last night, although
the trade idea/analysis itself was done around 6 PM PDT. What I believe is
useful about this chart is that it identifies a key resistance level, 114.70 but
also factors in that the current price action is a bit extended – hence a
pull-back is likely.
Under this scenario I chose to break my trade entry into 2 pieces. The
chart below will illustrate this.
As of this morning, 5:23 AM PDT, the trade has begun to play out.
EUR/USD:
Look for the 1.2060 level to contain pull-backs; we still see 1.1985 by
Monday
USD/CHF:
Solid support at 1.2825 with momentum suggesting a move towards 1.2910 by
today/Monday
** the above observations in EUR and CHF were done prior
to the PPI and Retail Sales data
As always, feel free to send me your comments and questions.