These Charts Tell Me What’s Brewing Next

FX markets got busy around 3:00am ~
4:30am EST
while much of the U.S. slept. That is very typical of the
currencies… east coast traders like myself need to either be vampires or adept
at setting prestaged orders in key locations on a chart. I happened to be awake
at that hour from an unexpected head cold = sore throat in the dog days of
summer here. Temps here will be 90+F with high humidity today, and I’ve got a
kick-butt head cold working. Go figure!

Anyway, I digress. Major pairs all made
expected pull backs into the prevailing trend and fired off in harmony with
their current directional bias. Before that happened, a bunch of traders got
caught leaning the wrong way for reasons we’ll discuss below. But first, let’s
review the charts to see what’s brewing next:

EUR/USD (+$10
per pip)

Euros pulled back to the 2170 zone we spoke of
yesterday as deep support. A buy order staged there easily held a -30 pip stop,
which is what I use on all intraday chart FX trades. When trading trend moves
off daily or weekly charts, initial stops are much bigger while potential profit
targets are likewise several hundred pips away from entry.

Anyone who prestaged a buy order near 2170 had
the chance to ride it towards 2320 for +150 pips or +$1,500 per contract total
range. Taking some kind of profits from the middle of that move was certainly
viable… I hope you agree.

The second entry visible was a confirmed long
trade per the method I use for traders sitting in front of their screens at that
hour. Anyone who trades the European hours can skip prestaged orders and trade
live charts, but some of us traders need our sleep!

GBP/USD (+$10
per pip)

British Pound was listed in here yesterday
morning as a valid buy signal near 7670. Again, prestaged orders there held
stops with ease and it was full-bull upward from there. Current highs at 7828 as
I type are likewise +150 pips above entry signal as well.

USD/CHF (+$9
per pip)

Swiss Franc as a staged sell order near 2780
did stop out on the way towards 2820 noted in here as deeper resistance on
Tuesday. Shorting 2770 a second time after resistance held was confirmed by
other signals in our method on the chart, but one had to be awake and trading
this visually to make that happen.

USD/JPY (+$9
per pip)

The Yen behaved perfectly: failed right at
111.85 sell trigger three times, then fell out of bed to 111 area now being
probed. When they trend, the Yen crosses (USD, EUR and GBP) make some excellent
trading moves. I guess that’s true of any trending market, now isn’t it? The JPY
pairs are my least favorite to trade, but I take them anyway to buffer action in
the GBP – CHF symbols. When one is moving, often the other is not. Lately it is
all working, and we sure won’t complain about that!

Price levels posted in charts above are compiled
from a number of different measurements. Over the course of time we will see
these varying levels magnetize = repel price action consistently.

If you wonder how-what we trade with, our
methodology is available via CD-ROM for less than half of any trade signal shown
in the charts above. I’m not one to push sales, spout a bunch of hype or give
call-to-action deadlines on limited offers. The method we use to trade FX are
simple, clear and concise. Anyone can learn to do it, in my own highly-biased
opinion. My partner Russ and I spent hundreds of man-hours and thousands of
dollars in development. We’re perfectly content to trade the signals alone, but
anyone who’d like the potential to profit methodically are welcome to join us.

Wednesday & Beyond

Trying to post short-term FX market
action looking forward is probably best done in the afternoon or early evening.
Last night I could have pointed out some clearer entry points on the charts. The
same thing is true in days ahead… morning action can be traded live, overnight
potential can be targeted with preset orders. This evening we’ll post Thursday’s
chart info in this forum, then continue with evening FX posts each day to

The balance of today is likely to continue
directionally for all symbols. Trading the intraday charts for trend pull backs
should offer decent gains potential, we’ll see. Friday morning will be the next
prime chance for an pre-event trade setup, detailed Thursday night inside here.
If price action fires off directionally, we have the chance to make +100 pips
(or more) per contract within minutes of the jobless claims release. Tune in for
that one!

Please enjoy a prosperous day in the FX, and
I’ll meet you back here this evening for a peek at Wednesday’s overnight
potential from there.

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.