6 Jul 3:20:18 PM Ahead of the G8 summit, ECB President Trichet said he is "very clear" in his support of the the US dollar as the world currency reserve.

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Live Long And Prosper!
Rickos.

BE VERY careful, the reverse today was a key to the upside trend, watch the Euro PAIRS, all reversed, making higher lows from the fall before, and now all it needs to make is higher high (we printed 1.37 vs jpy....and 1.42 last time) do not be surprised if we take the 1.43 next swing up....any positive comment in the G8 statement regarding the world economy and the euro ...gbp and aud will shoot up in one candle....forcing many shorts to cover then come down again, range trading is the prefer method in July.

There is less volatility on positive equity days, and that signals that long-dollar positions are near-term hedges, rather than long-term plays. The fact that a currency cannot make a break on the dollar that holds unless equity markets are trading in the green reveals a fear of loss syndrome at the moment.

Making a clean break has been hard for the market to do for six weeks now, as we can see from the channeling 4 hour charts. The target areas cannot be too far away; global equity trade is finding it hard to hold intra-day direction from one region to another, allowing the bigger reversals from tests of support and resistance to take place.

Making use of momentum at 20:00 EDT, 02:00 EDT, and 07:00 EDT is key to getting a clean break, and subsequent price action. The key to an improved forex order flow of momentum and volume to smooth out the heavy reversals will come with a market that starts to buy equities. Until then, the battle each day to buy dollars and Treasuries as an equity hedge will take place.


The Reserve Bank of Australia's interest rate decision is posted at 00:30 EDT, and the effect on the aussie will ripple through the other major pairs at that time.

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Don't Chase the market let the market come to you

Hi CodyB

The pivots that you plot - are they 5pm New York to 5pm New York, or what time do you use as your start and end point of the day?

Thanks for you previous help too - I am enjoying the new look of my charts.

fxcm charts seem to work well so whatever they are using, I have been watching their mt4 demo and its quite accurate

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Don't Chase the market let the market come to you

the ones I use are new at 5pm EST close of US session

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Don't Chase the market let the market come to you

Jaime had a very good write up on pivots that Mr. Long posted sometime back but I am unable to find the link.

Many people will use LO for the PP's LO being London Open but my own personal experience tells me that US close at 5pm is more accurate as are the fibopivots compared to standard ones....reasons posted many times

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Don't Chase the market let the market come to you

Cody,
good to talk to you agian, do not forget we are in july, real traders are not there to move the market...but the few out there with deep pockets can benefit from unexpected moves that they can create....today there was no reason for that reverse (not questioning the market...) specially the last 15 minutes....when DOW jump 40 points in one bar...Friday is key....until then,...no logic behind the moves...just like last friday when longs (believers) got smacked across the face with the NFP number.

it is a range trading till then...tonight Asian session is shaping up to be another run to next resistance 1.4040...then re-evaluate

of course you are more experienced than me...but the asian session is only 1 and half hour to go...will see

to be honest it has been extremely hard to say where we are headed for the most part, some days there is clear indication like last weeks fall from 1.41 area when it failed again and again to rally but since then with such low liquidity in the markets... and it will get worse as summer progresses...., its all from the 4hr charts....even daily charts right now don't help much.

all day I have been up then down on tonights action from the past 24 hr moves so am looking for a break of 3920 short or 4040 long and will scalp whatever it gives me between. targets not more than 20 to 50 pips away reasons in previous post

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Don't Chase the market let the market come to you

EU is basically directionless so lets look at another pair that has traded nicely over the last 24 hrs.....GU

For GU we see a daily doji above a strong monthly fibo level, this also gives us indecision in the GU right now. go figure
Last night it was a clear direction after 9pm on it and the yens as well as the reversal but now at the end of the day even with all the pinbars I am undecided

when a sustained break comes it will come fast so have SL set and trade smart

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Don't Chase the market let the market come to you

That is exactly should be the plan, few pips here and there....but do not marry any position till we get one trend to prevail...which does not look like it will happen till everyone comes back from vacation by the mid sept

Happy trading tonight...wish you luck...I am on the sideline except euro/gbp...my luck pair

Support Resistance Levels 7 July 2009

1,4011 - 1,4078 - 1,4117 - 1,4152 - 1,4191

1,3972

1,3916 - 1,3882 - 1,382 - 1,3791 - 1,3717


support resistance

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vacations...this is why there is such low liquidity in the summer markets

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Don't Chase the market let the market come to you