Forex Course

Just before I go on holiday, I thought I would leave you with a long-term forex trading system that you may want to play around with. (…)
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I don't normally mention forex robots very much on this blog, but there's been a lot of hype surrounding the upcoming launch of a new robot called USDBOT, so I thought I would bring it to your attention. (…)
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I've been looking at the long-term charts of the EUR/USD pair today, and it looks like there could be significant downside potential if the price breaks below two key levels. (…)
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A Closer Look On Automated Forex TradingvotesvoteAs we continue to march forward progressively on the technological front, it is interesting to learn about the emergence of automated forex trading. This article will interest anyone who wishes to make a profit in currency trading. Forex auto trading followed hot on the heels of the materialization of online retail trading toward the end of the
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Talking Points

British Pound Continues to Retrace the Decline From December, Euro Remains Supported by 200-Day SMA

The British Pound crossed back above the 50-Day SMA (1.6338) during the overnight trade to reach a high of 1.6381, and the GBP/USD may continue to retrace the decline from December as market participants raise their appetite for risk. Meanwhile, Ernst & Young’s Item Club held a cautious outlook for the U.K. and said that the region faces a “challenging” year as households face a weakening labor market paired with tightening credit conditions, and forecasts the growth rate to increase at an annual pace of 1.0% in 2010 as the expansion in monetary and fiscal policy continues to feed through the real economy.

At the same time, the Rightmove home price index gained 0.4% in January after tumbling 2.2% during the previous month, while the annualized rate increased 4.1% from the previous year after rising 1.7% in December to mark the fourth consecutive rise. The breakdown of the report showed home prices in six of the ten regions increased during the month as “limited supply of sellers is being outstripped by buyer demand,” and conditions are likely to improve going forward as the economy emerges from the worst recession since the post-war period. Nevertheless, the slew of U.K. data scheduled for this week is likely to stoke increased volatility in the exchange rate, and we may see a major breakout following the Bank of England meeting minutes due out on Wednesday at 9:30 GMT as investors weigh the outlook for future policy.

The Euro tipped lower against the greenback for the third day, with the exchange rate slipping to a low of 1.4333, and the EUR/USD may continue to trend sideways over the week as the pair remains supported by the 200-Day SMA at 1.4283. Nevertheless, the European Central Bank announced it will discontinue swap operations with the Swiss National Bank “against the background of declining demand and improved conditions in the funding markets,” and the central bank may continue to normalize policy over the coming months as the Governing Council holds an improved outlook for the region. Moreover, the Bundesbank said that the economic recovery in Germany remains ‘fundamentally intact,’ but went onto say that the pace of expansion was significantly slower in the fourth quarter of 2009 as activity in the domestic economy remains weak.

U.S. dollar price action was mixed across the board, with the USD/JPY extending the decline from the previous week to reach a low of 90.65, and risk trends are likely to dictate price action going into the North American trade as the economic calendar remains fairly light for Monday. U.S. equity futures are slightly higher on the day, led by a 0.12% rise in the S&P 500, and a rise in risk appetite is likely to weigh on the greenback as it remains the most popular funding-currency next to the Japanese Yen.

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I've got back in the swing of things this week and my trading system generated a total of four trades altogether. (…)
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I've been using candlestick charts for several years now and they are easily the best type of chart you can use in my opinion. (…)
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Sorry for taking so long to post this trading update but I've had a miserable time during the last week. (…)
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NEW YORK (TheStreet) — 2009 was a golden year with bullion making a $340 upwards move (+35%) from Jan. 3 to the Dec. 26 highs.

At the same time the Usd was the one of weakest currencies in global trade. However, since Dec. 3 and the last U.S. non-farm payroll report, gold has declined by more than $150 (-12%) in just three weeks, as shown on this chart.

The three-week gold move has fed off very strong down-side momentum, and a freshly broken trend-line suggests that this may be a near-term, first leg, of something larger to follow. The Elliott Wave team at the TheLFB.com will monitor gold weakness and Usd strength in the first part of 2010.

One of the pairs that reflects the sentiment for Usd based moves is Usd/Chf, since it is linked to interest rate differential based trade and does tend to signal Usd momentum swings better than most currencies. On the long side of swissy, the trade team is watching for signals of a long move, possibly up towards the 1.100 zone, while gold may fall back towards $1000 per ounce.

Elliott wave view: Usd/Chf

Swissy reached new 2009 lows on Nov. 26, at a point that the market saw a Usd bear market reversal. Overall we are looking at two long-term wave count, and what is important to note is that both of the wave counts signal for Usd strength within the next couple of months.

Wave count No.1: You will see a long-term bullish wave count following a Short blue wave B), that may already be completed somewhere above the 0.9634 support area. Traders may be looking for a higher impulse wave C) move. Impulse moves mean a five wave structure, which is bullish in our case.

At the same time the Usd was the one of weakest currencies in global trade. However, since Dec. 3 and the last U.S. non-farm payroll report, gold has declined by more than $150 (-12%) in just three weeks, as shown on this chart

The three-week gold move has fed off very strong down-side momentum, and a freshly broken trend-line suggests that this may be a near-term, first leg, of something larger to follow. The Elliott Wave team at the TheLFB.com will monitor gold weakness and Usd strength in the first part of 2010.

One of the pairs that reflects the sentiment for Usd based moves is Usd/Chf, since it is linked to interest rate differential based trade and does tend to signal Usd momentum swings better than most currencies. On the long side of swissy, the trade team is watching for signals of a long move, possibly up towards the 1.100 zone, while gold may fall back towards $1000 per ounce.

Elliott wave view: Usd/Chf

Swissy reached new 2009 lows on Nov. 26, at a point that the market saw a Usd bear market reversal. Overall we are looking at two long-term wave count, and what is important to note is that both of the wave counts signal for Usd strength within the next couple of months.

Wave count No.1: You will see a long-term bullish wave count following a Short blue wave B), that may already be completed somewhere above the 0.9634 support area. Traders may be looking for a higher impulse wave C) move. Impulse moves mean a five wave structure, which is bullish in our case.

Usd/Chf Weekly Elliott Wave View

Wave count No.2: The second wave count is long-term bearish, since we came out with a completed black wave B leg around the 1.2400 top. We counted a move up from the wave A lows to the wave B highs as a double zig-zag pattern, separated by a wave (X). After that, the market made a very sharp decline in a blue wave 1) followed by a sharp reversal in blue wave 2), before prices fell into a down-trend channel with a five wave move.

If this wave count is correct, the market should make three waves of retracement into a Long wave II pull-back over the coming weeks and months, since we can count five completed waves down in our red wave I. Elliott wave traders will always look for a three waves of a reversal once a five wave pattern is complete.

Usd/Chf weekly Elliott Wave view

Above are two of three charts posted on this currency to members each day, that make up 30 charts in total that cover six major currency pairs, equity futures, oil, gold, and the dollar index.

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The only drawback to running a forex blog is that you are constantly being bombarded with lots of questions, and some of the most common questions I receive relate to my 4 hour trading system. (…)
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