We have seen LOTS of USD movement this week and, as I have mentioned during webinars and such, it appears that several pairs are on the verge of breaking out of the existing summer channel. So to make sure we’re prepared for this, there was a few things to look for, so have a peek at the video below and feel free to shoot me any questions afterward.
POSTED: 11:05AM PDT.
VIDEO IS UPLOADING, IT WILL BE POSTED VERY SHORTLY.
Here’s an interesting article about the S&P 500, it’s approaching key levels like we’ve talked about before and there will be some fighting to get it through this key level of resistance. So have a look at the article from MarketWatch. Remember, the S&P will help USD and JPY pairs find direction so it’s crucial that we watch this market and know the movements and key levels.
Hi Guys, quick update on the markets. I have seen the DOW and S&P effecting market movement quite a bit but one of the key indicators I’m looking for is GOLD! Gold and the USD have a very tight relationship and I believe that when gold “really” starts to move, that’s the time we’ll see the USD making significant runs. Have a look at this Market Watch Article of Gold.
We have seen the USD pairs (gbp/usd, aud/usd, eur/usd etc) sit in long boring, choppy summer channels for the last few months but that all could be coming to an end sooner than most of us might be thinking. As mentioned in the video from the Sunday night video update, something that caught my eye was the DOW breaking my level of 9,000 and holding above it for a day plus. It all just so happened that while the DOW broke above major levels of resistance all the USD pairs were sitting at the extreme levels of the summer channels, almost knocking on the door to break the level. So here’s what I’m starting to look for,
1. EUR/USD is just under 100 pips away from the high of the last several months, (1.4330) and ti’s not showing too many signs of a turn around. So a break of this upper level could trigger an exodus upward on this pair.
2. GBP/USD this pair is also creeping up to the recent highs, it’s currently trading around the 1.6500 with a strong level, even a trigger level, coming up at 1.6650 but the major high at 1.6740. A break of the 6650 level should push this pair through the high on it’s way towards some major gains. Remember, all on all these pairs, the breaks needs to happen first before we can assume the next leg of movement.
3. AUD/USD this pair has JUST broken above the summer/several month high of 0.8260, this one is forging new heights and provided it can hold them through the next UK/US session I think the gains will continue.
4. USD/CAD As many of you know, I don’t trade this pair much but it’s ALSO testing those lower extreme levels. The 1.0770 is the low of the last LONG while, with oil continuing upwards en route to the $70 level and beyond, along with the USD taking a major dive and oil strengthening the CAD, this pair should make a serious break down before too long.
Remember, we need to see these extremes break before we can assume the end of the summer channel. These levels could also be tests before a major reversal but with some of the USD pairs already breaking the extreme levels, it makes it difficult to believe there’s going to be anything other than a break of the USD pair to the negative run for the green back.
I hope you all had a great weekend, I know I did! Actually, I’m pretty sure I did but I don’t actually remember too much of what I did. What you’re obsessed with the market all your short/long term memory gets saved for the market… I should invest in sticky notes.
Anyway, the Sunday night video update has a few things to discuss one of which being, “is summer trading coming to an end?” Well, is it? One thing that really keyed me off to the whole house of summer cards collapsing is what the DOW did this week, it finally broke the 9,000 level! That’s MAJOR for us currency traders, this could cause a MAJOR decline in the USD which in turn could push the EUR/USD, GBP/USD and others through their upper summer channels. Now I don’t want to be the boy crying wolf here but it’s really time to start watching out for the breaks of these summer channels, It could happen this week and maybe next week, or even month. The point is that we don’t get caught with our proverbial trading pants down, “readiness” and preparation are the KEY to making money in this market. Being ready for the moves is a REAL NICE thing.
This is a free webinar for all those interested in learning about how to trade the forex market, what goes into becoming a trader and what are the basics behind the whole process. With today’s economy there’s more than enough reasons to take investing into your own hands and what better way to do it than in the largest openly traded market around? The Forex market has great potential for all those that are interested, it’s not an easy process but it’s well worth the work, I promise that. So join us Wednesday night, it will be fun, you can ask questions and participate in the discussion if you wish.
Thanks and I look forward to seeing you all on the webinar.
PS. for those that have never been on a webinar, all you have to do is click on the link down below and it will connect your computer to my computer, then you’ll be able to see what I’m doing on my screen and be able to hear me through your computer’s speakers.
The Sunday night update is here and I covered all the important details I could think of, is doing so I ran out of time on the video (as many of you remember a few weeks ago i went over and we never got the video working! No thanks on a repeat of that!). Anyway, in this Sunday night video I talk about several important set ups and levels across the various currency pairs.
A few important details to remember is what the equities markets are going. Lets review,
GOLD: $938, it will encounter major resistance at the $1,000 market. As Gold reaches that level, be prepared to watch the USD finally make a decision on where direction it’s going to go. A bounce off that level could give the USD major strength and a break of that level could lead the USD down an ugly path.
S&P 500: 940, this is also trading near a strong level, the 1,000 level in here is very significant, technically speaking. If the S&P can break that level that could cause weakness in the USD as well, watch this index closely now and in the upcoming days.
DOW: 8,750, And there’s our good friend, the DOW. This has been a range bound market if there ever was one, it’s been quite stuck between the 8,000 and 8,900 area. Be ready, as the DOW breaks out of this range we’ll see the USD also react to this movement. All these indices will give us tale tell signs of where the USD might be headed and when.
The above mentioned markets will, for the most part, go opposite of the USD so basically watch for breaks of those upper levels (which wouldn’t likely happen until Aug/Sept but possibly sooner). If they go up, the USD is likely to go down.
Ok, have a look at the video and good luck trading tonight!
Many of you have asked for written explanations of some of my trades, I will start posting them in the forum in the “Jared’s soap box” section, starting with “they sunday night trade.” It’s posted and ready to be viewed, so go have a look and feel free to post any questions you may have regarding the trade set up.
Here’s a set up that should be watched over the next little while, there should be some definite short term/quick profits that can be pulled out of this. The break level is 1.6240, I would ideally like to see a 1h candle open above this level but there’s also opportunity for entry if the market can push above by 10 pips. Remember, this should only be traded to the next daily pivot. Good luck!
I’m trying to get the forum a little more active by posting new material more often, as of right now I’ve just posted some things that i’ve found that are interesting but the next posts will be my material on trades and my methodology. But for the meantime go have a look in “Jared’s soap box” at the G-8 post.
And yet again, Sunday night is upon us and I find myself wondering how the summer had hit the (almost) halfway market and I don’t have nearly enough stories to tell?! Well, the important thing is we’re still trading the market and (fingers crossed) making some money!
Reminders, If you haven’t joined the emailing list please do so, it’s only to your benefit- the link is on the right hand side part way down.
Also, if you haven’t joined our online chat please do so as well- also it’s only to your benefit! Download www.skype.com and add me as a contact “j21johnson”
Ok, onto the Sunday night video update: lights, camera ACTION!!!
Hey all, my name is Jared Johnson and I am a currency trader. I've always been a businessman at heart and involved in the
financial markets whether real estate or the stock market or other ventures. Enjoy this website and the information it offers.
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