Euro position closed...Next trade GBPUSD

My earlier trade with the EURUSD just has been closed by my trailing stop loss with a profit of just 13 pips. The pair hit the R1 level and now currently floating around that area of resistance.

My next trade that I am monitoring right now is the GBPUSD. As shown on the above chart, all 3 indicators are already in the Blue zone which signal for a long trade. So all I need now is just to wait for the 1-minute chart to give me a next entry signal.


A few minutes ago I come across the following news/speculation from Barclay Capital "1155 GMT [Dow Jones] GBP/USD finally responded to divergence on the daily and weekly charts, rallying out of its recent range and making a new high for 2009 of 1.4988, notes Barclays Capital. This breakout is far from conclusive proof that a more sustainable bounce is underway says the bank, as the rate remains in a wedge like formation and below its 50 day moving average, which comes in at 1.5110. However, while it holds above support at 1.4730 BarCap says it gives this fledgling uptrend the benefit of the doubt and looks for it to extend toward the 50 DMA at 1.5110. GBP/USD now trades at 1.4944. (GST)"

I will be setting my target for the pair at R2 as support for the above speculation. Right now GBPUSD trading at 1.49560

EURUSD gain strength after being punished

6:41 pm (Brunei): I just enter a trade with EURUSD for a long trade at 1.36040 with a stop place at just about the Blue BBands in the 1-minute chart. My target profit level today for this pair is set at R2.

Reason behind my decision is that on my main trend (30-min chart) all the signal is in Blue and this is further confirmed by my 5-min chart, with all three indicators in the blue zone. So I immediately enter upon the close of the bar right after the first blue dot in the 1-minute chart. I also set a trailing stop loss to protective stop to reduce risk.

I will wait for this pair to close before I can trade other currency pair. Other pair that I may consider would be EURCHF and EURGBP. Until then...I will update on the trade development as it happen.

Happy trading guys

Trading Summary: Tuesday 6 January

I did not execute any trade as the indicators does not agrees with one another on the currency pairs that I monitored. Moreover I am too tired to continue trading all nights, and there's no point to trade the forex market with such great fatigue. So I end up asleep at about 11pm Brunei time.

However for those of your guys able to stay awake until the early mornings after 2 am, I am sure you can get some good trades with profits around the region of 30 - 60 pips. This early morning at about 8:30am (7 Jan 2009) for those of you guys that a free to trade the forex, you may catch AUDUSD with Retails Sales Trend coming out at about that time. Looking at my 30-minute chart of the AUDUSD, it seems ok for a Long trade. But the other remaining chart, i.e. the 5-minute and 1-minute still in the red zone. If I were to trade I will be looking for both chart to turn into blue. My target will be either R1 or R2 for this pair.

Happy trading guys...

Market Summary

2211 GMT [Dow Jones] U.S. SUMMARY: EUR continued its retreat vs USD, GBP as investors speculated about a rate cut from ECB next week; after bottoming early at lowest level since Dec. 12, EUR generally trimmed its losses, aided by release of minutes from Fed's December policy-setting meeting, which evoked a bleak outlook for U.S. economy, though EUR continued recent sharp decline against GBP. U.S. data like factory orders, ISM services index were also poor. EUR/USD at 1.3509 late vs 1.3616 Tuesday (and off low of 1.3312), USD/JPY at 93.83 vs 93.33, EUR/JPY at 126.66 vs 127.10, GBP/USD at 1.4924 vs 1.4685, USD/CHF at 1.1165 vs 1.1090. Stocks closed higher despite more grim economic data and Fed warnings about depth of current downturn. Hewlett-Packard gained 8.2% after launching discount laptop with emphasis on video graphics, while American Express rose 5.6% and General Motors added 6.2%. Dow +0.7%, Nasdaq +1.5%, Philly semcions +5.1%. Alcoa shares down 3.5% after-hours, as it cut capex outlook. Treasurys improved from early steeper losses after well-bid 10-year TIPS auction and on heels of massive offering of corporate supply; 2-year yield down 1.6 bps at 0.80%, 10-year down 3.2 bps at 2.46%. Comex February gold settled $8.20 higher at $866/oz as support held at key moving average, USD gave up some initial strength and traders continued to eye developments in Middle East. Crude futures fell as marked paused to evaluate if oil could continue to rally in face of severe economic downturn; Nymex February crude settled down 23 cents at $48.58/bbl.(RSH)

A Sea of Uglies

10:25pm (Brunei) - It seems that all major currency pairs and major crosses at this time showing uglies of chart. All of the indicators does not agree with one another. Even with EURCHF I cannot make an entry due to unclear indicator with the 5-min chart, same happens with GBPUSD with the 5-minute chart. Anyhow GBPUSD post a great strength of 100 pips towards S1 in the 1-minute chart. But again I cannot make any entry with this pair due to unclear signal of the Starlight with the 5-minute chart.

GBP may set for a Bull...Euro still hammered by USD

As of 7.10 pm (Brunei) there's still no trade that I can execute in the currencies that I am looking at with Kuasa Forex indicator. First I will like to discuss EURCHF that I am aiming to trade as soon as the 1-minute chart making some bull run. I'm looking for the indicator to turn blue first before it resume into RED.

From the chart above of EURCHF, my main trend the 30-minute chart is in Bearish signifies by the RED indicators (notice all three indicators in RED). The 5-minute chart is also in RED, the same with 1-minute chart which prompts me for a short trade. I am now just looking at my 1-minute chart to look for a next short trade. Before I can do that I need some retracement...so I just wait for a blue indicator to develop before I can trade for the next RED dot.

My target will be at S2 with a stop loss to be defined as the market develops.

Asia Market Outlook

Jan 5, 21:50 GMT [Dow Jones] ASIA OUTLOOK: Mild gains in USD, EUR vs JPY in choppy early trade though AUD/USD off initial highs; USD/JPY at 93.46 vs 93.33 late in NY, EUR/JPY 127.23 vs 127.10, EUR/USD sticking near 1.3611. Stocks have slightly negative cue from Wall Street, with oil posting another rise, which may hurt transport names; U.S. futures mostly flat in screen trade though NZ shares though for now +0.4%. On data front, Australian PSI at 2230 GMT, Philippine CPI. Later there's UK nationwide monthly housing review, CIPS services PMI, eurozone services PMI, flash inflation estimates; in U.S. there's ICSC/Goldman Sachs chain store sales, Johnson Redbook index, ISM non-manufacturing index, factory orders, pending home sales, ABC/Washington Post consumer confidence. (RXM)