Forex Bull

by Johan Kriek (Jkriek@fxinstructor.com) Key notes: – Risk aversion returns as equities turn lower – Yen strengthening continues – Greenback strengthening continues Probability Studies: The weakening bias of the EUR is still intact as we can see on the 4 hr chart above how the bearish cycle within our Bullish Major trend shows no signs of ending at this stage especially after the EUR kept on taking out new lows yesterday On the 1 hour chart we can see the Probability Study. Due to the fact that the 60minute trend is still bearish we will only execute entry systems within this context. The trading condition will remain bearish as long as the 1 hour stochastic is bearish.

Student?s Question: In the below chart I have highlighted a point where there is crossover on the MACD which would be an indication to take a short position however, although that would be trading in the direction of the trend.

Tue, 13th of January, 2009 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD continued it’s bearish momentum yesterday. The pair bottomed at 1.3289 but failed to closed below the key level 1.3300 .  I am expecting another downside pressures today.

Just a few quick charts to show the short-term oversold condition I was talking about earlier. I haven’t done my scans yet, but based on volume, I may change my mind and look to play a quick bounce if we get down around 850 on the S&P

After selling off right to support to close last week out, the market broke down today below that support as the selling continued. Stocks opened slightly down, but continued to fall pretty steadily all the way into the lunch hour. They moved sideways from there for about two hours until around 2:00, where they broke the consolidation to the downside and fell further

The dollar traded mixed Monday, rising against the euro and pound but slipping versus the yen as investors anticipated a rate cut this week from the European Central Bank.

The dollar rose against major currencies Monday – including a one-month high against the euro – boosted by expectations that the European Central Bank will cut rates later this week.

- US equity indices are under some pressure this morning as investors express their pessimism ahead of earnings season. Alcoa, which said last week it would significantly cut its aluminum output, kicks off what is widely anticipated to be a dismal couple …

Greenback advancing in currency trading The U.S. dollar is moving solidly ahead in forex trading on the currency market today. The greenback is seeing success in currency trading as investors look to the dollar as a safe haven

The market has picked up considerable steam since liquidity returned after the weekend, which threatens the low volatility and safety in technicals we usually require for range trading.