Ok everyone, here are the new levels to watch for the Sunday night trades.  Remember, the basics to trading these levels go as follows;

1. which ever level is broken is the direction we are to trade (ie, if an upper level is broken we buy, lower- we sell)
2. we usually wait for the market to pass through the levels by 10-20 pips depending on the currency.
3. the break out can and usually happens between 11pm and 5am pacific standard time.
4. REMEMBER, these are JUST levels!!!  That means I expect everyone to use their discretion and judgment on each and every trade as well as practice responsible money management (using stop loss/take profits, and reasonable and responsible amounts of your account balance).

Ok, here are a few things to take into account about this weeks levels, first of all we have seen quite a bit of movement over the last few weeks so the market could be reaching some amount of exhaustion, so be aware of that.  Next, remember the two options of typical market movement; first, lots of movement at the beginning of the week (which we’ve seen quite a bit) and second, minimal movement at the start of the week and the bulk of the swings tues-thurs.  So watch for either of these scenarios to happen this coming week.

EUR/USD:

Nice down trend on this pair, looks like it could continue that direction this week.

upper buy levels: 1.3035

lower sell levels: first level 1.2860(this first level may or may not create the big movement down), second

level 1.2765

GBP/USD:

This pair is also in an extreme downtrend and it’s hard to say where it will stop.  I get the feeling that it’s overwold at this point, however i’ll be looking for possible sells if it breaks the lower level.

Upper buy levels: first level, 1.3805 second level, 1.3915

Lower sell levels: 1.3495

USD/JPY:

Not a pair i like to watch/trade, be careful with this one.  It’s in a downtrend but seems to be consolidating and possibly turning around.

Upper buy levels: 89.65

Lower sell levels: 87.95

USD/CAD:

Also a pair i don’t watch or recommend trading, but if you do…. have a look at these levels

Upper buy levels: 1.2650

Lower sell levels: 1.2265

GBP/JPY:

This pair is in a strong down trend, it is at EXTREME lows but seems to want to keep on heading south.  Watch for false break outs on this pair,

Upper buy level: first level, 122.80 second level, 123.90

Lower sell levels: 118.75

GBP/CHF:

I’m still getting used to trading this pair, i’m not totally familiar with it’s charactristics just yet but this is what i’m looking at so far.  It’s in a down trend, it’s not at extreme levels yet and seems to follow the other GBP pairs fairly closely.

Upper buy levels: 1.6050

Lower sell levels: 1.5700

AUD/USD:

This pair has been heading down for some time, it’s reaching extreme lows but still has just a bit of room to move down so watch for it as well as either direction.

Upper buy levels: 0.6590

lower sell levels: 0.6415

EUR/JPY:

I don’t know what i think about this currency, so here’s the basics; downtrend, at extreme lows, currently chenneling slightly up.

Upper buy levels: 116.00

lower sell levels:  first level, 113.65 (may be false break level) and second level is 112.50

Good luck and happy trading!!

Jared J.

Hey everyone,

Here’s a quick look at some of the levels and currencies I’m looking at, I may or may not be entering any/all of these trades but these are levels that are looking very interesting at this point.

First of all, as you have seen, the GBP/USD, EUR/USD, GBP/JPY and several others have made some pretty intense moves over the last several hours.  So taking that into account, the market could be a little exhausted so take caution with these levels and watch for EXTREME (levels from daily/weekly charts) highs and lows.

I sent out a massive text earlier today listing a trade I took on the GBP/JPY and it made a nice move of about 80+ pips.

GBP/JPY,

this looks like it’s ready to break down but it is at an extreme level so ready for possible big pull backs.

Lower level: 128.75

USD/CAD:

This pair is headed up as it would seem, we have a nice upper level that is on the verge of breaking.  As many of you know, I don’t trade this currency EVER but with a set up like this, I have to at least pay attention.

Upper level: 1.2575

EUR/GBP:

Also an interesting pair but the set up is looking very nice so i’ll be keeping an eye on a break upwards.

Upper level: 09130

As for the GBP/USD and EUR/USD just watch breakouts of the lows of the day, those should be good for a few pips, remembering that the GBP pairs are at extreme lows so watch for pull back on the break outs downward

Happy trading!!

Jared J.

Ok, guys here are the upcoming levels we’re going to be looking at for the big break outs.  We have a few situations happening on some of the currencies, remember we’re looking for the break out of the highs/lows of Friday but some of the currencies have made small attempts at breaking those levels and have pulled back- remember we don’t get into trades until at least 8pm but most likely later like 10pm and on.  It’s currently about 6:30pm PST so I personally won’t be trading any levels until probably 11pm my time, give or take.  So now instead of watching the breaks of the highs/lows of Friday we have some slightly expanded levels, so we’re now going to watch the new highs/lows that the currencies have created, as long as they are more extreme than the highs/lows of Friday, I hope that makes sense

Remember, Monday is a bank holiday so the US market could be very slow, this could affect the volatility of the currencies, break outs could be much less intense then we have seen in the past weeks.  Volume is what drives the market and with bank holidays things can slow down considerably.  Be prepared for this, plan accordingly and stay up as late as possible watching these moves.  CAUTION should be practiced on these break outs, use stops and GOOD money management!!!

Here we go,

EUR/USD:

This pair is stuck in somewhat of a downtrend still but it looks like there might be some good opportunities for a quick upward move, be careful with this one, it’s been pretty choppy.  I would recommend waiting at late in the evening/early in the morning to make sure it’s going for a true break out.  I wouldn’t set an entry order, this probably needs to be entered manually.

Upper buy levels: 1.3385

Lower sell levels: 1.3185

GBP/USD:

This pair looks like it might be headed up as well,

Upper buy levels: 1.4888 (this break should take it to 1.4990 which is the next break level)

Lower sell levels: 1.4650

GBP/JPY:

This pair looks like it’s headed up, it was unable to break the lower levels of the week and year, we have a crossover on the 4h chart and that usually means some good upward movement is in order.

Upper buy levels: 135.90

Lower sell levels: 132.10

AUD/USD:

This pair may follow the EUR/USD and GBP/USD and head up, but be ready for any level to happen.

Upper buy levels: 0.6810

Lower sell levels: 0.6650

USD/JPY:

This pair is probably ready for a change in direction, we may see a shot up and an early reversal Monday or even Tuesday.

Upper buy levels: 91.30

Lower sell levels: 89.90

Well here goes another week in the market, we had LOTS of good trades last week and made some pretty good bucks… lets do it again this week, who’s coming with me?

Here are the pairs and levels as I see them, please make sure to read the commentary for each currency pair, there are IMPORTANT details in each of them.

REMEMBER EACH LEVEL NEEDS TO BE PASSED THROUGH BY THE MARKET BY AT LEAST 15 PIPS TO VALIDATE

EUR/USD

This pair looks to be resuming its previous downtrend, I’m currently short (in a sell position) in this pair and will probably continue to hold it for several hundred more pips.

Upper buy levels: 1.3750

Lower sell levels:  1.3430 (this was a good entry, entering a sell near here should be ok) otherwise 1.3310 is the next sell level.

GBP/USD

This pair seems to be in a bit of an uptrend, but I see strong downtrend movement in the EUR/USD and the GBP/USD seems to be heading up, although these pairs can go in opposite directions it may be short lived.  Therefore, this pair could be headed up as the short term trend is up but the overall trend is down.

Upper buy levels: 1.5350

Lower sell levels: 1.4979

USD/CHF

I don’t watch this pair too often but it looks like there could be some good movement in this one in the near term.  The trend is difficult to determine but this could be headed down.

Upper buy levels: 1.1205

Lower sell levels: 1.1065

USD/JPY

This pair seems to be continuing in the downtrend direction eventhough the Bank of Japan has said it plans to “influence” it’s currency to a weaker direction.  So it could be difficult to predict the direction of this one but as of now it’s in a pretty strong downtrend and continues to break lower levels.

Upper buy levels: 90.60 is the first and the next upper level is 91.65

Lower sell levels: 90.12 was the level I was watching at markets close, but now the new lower level is 89.75

GBP/JPY

This pair has started an uptrend but appears to be reversing back to heading down, so watch this one, it can be tricky! The lower level i was watching at market’s close was 136.45 which is quickly broke.

Upper buy levels: 140.05

Lower sell levels: 135.35

AUD/USD

This pair I have not been watching lately due to it’s lack of steady/trending movement.  I will probably not be trading this one tonight but if you’re set on watching it here are some levels to watch.

Upper buy levels: 0.7105

Lower sell levels: 0.6955

Ok folks here are the Sunday night trade levels, I’m hoping for some big movements on these currencies, many of them are at extreme levels which makes good for some nice break outs.  As always trade with caution, these Sunday night levels can be a bit volatile (which is why we like them) butthat also makes for crazy movements.

Remember, on all of these levels that the market needs to break thru these levels by at least 15 pips.

EUR/USD

We have a confused trend here, it’s up and down and all around… be advised!

Upper buy levels: 1.3985

Lower sell levels: 1.3820

GBP/USD

For the most part, we have a pretty steady downtrend on this pair and I think it will continue but there could be some pull back for an upside break.

Upper buy levels: 1.4575

Lower Sell levels: 1.4445

AUD/USD

This pair is leaning towards continuing an uptend.

Upper buy levels: 0.7160

Lower sell levels: 0.7030

EUR/JPY

This pair is looking like it’s about to turn to the upside and start a major uptrend, an important level 129.70 will confirm a major turn around.

Upper buy levels: 128.60

Lower sell levels: 127.50

GBP/JPY

This is in a pretty strong down trend and I think it’s likely to continue but not before a little spike to the upside.

Upper buy levels: 134.10

Lower sell levels: 131.30

Here is a look at what I think the EUR/USD might be doing over the next few days/weeks.  Here’s one possible scenario on which direction the EUR/USD could go, click on the picture to enlarge the image.  If the EUR/USD can break this 1.3820 level It has a good chance of continued down trend towards the lows of early December– the 1.2700 area.  If it is to reach these levels, expect these movements to happen within the next two weeks, watch for support when price reaches 1.3630, 1.3420, and even 1.3250.  But if the market reaches the lower of these levels, you can expect further declines to the 1.2700 level.

The new year is going to bring interesting new aspects to the direction of the market so be aware of this.  There are many speculations of what the markets are going to do as the new year gets underway, many are skeptical of the strength of the USD due to the heavy debt load caused by the stimulus and bailout plans implemented in 2008.  With the DJIA stuck in the 8,000’s and oil seemingly range bound in the mid to high $30’s, it’s obvioius the markets are in a holding pattern until things can be figured out as far as the economic and political arena are concerned.  The USD is right there with the rest of the markets, uncertainty is the name of the game right now and until 2009 really starts to pick up some momentum then we’re waiting right along with everyone else.

We have every reason to believe that the Dollar doesn’t have much ground to stand on as for gaining against other currencies, but our charts might be telling us otherwise.  We must never get attached to an idea of what a currency “should” do, lets just read the writing on the wall (what are charts are telling us) and act accordingly.  As long as the EUR/USD shows signs of breaking these lower levels we have to believe that it has the potential of continuing downward.  So lets watch and wait and be ready for what comes next…

Here’s the pic, have a look.  Remember, click on the image to enlarge.

Where the eur/usd may be headed in the near term