Marc Walton on January 2, 2013
Hi,
Happy new Year to you all. The US House of Representatives have come to
an agreement that temporarily averts the fiscal cliff BUT in truth
nothing has been done to reduce the mountain of US debt and the next
thing on the agenda is to raise the debt ceiling.The PIIGS countries in Europe have seen massive cuts in government spending & huge unemployment all of which has been insisted upon by Eurozone leaders, and many US politicians as being the only way for these countries to put their financial house in order. At the same time the US fed continues to print obscene amounts of money every single day. One rule for one another rule for others?
How long this situation can drag on I do not know, but where does it leave us as traders? We need movement and news has recently been the biggest catalyst for that, BUT we have also seen lots of bounce trade opportunities in recent months.
I explain in todays video how many traders will be missing until next week and Japan is still on holiday. On top of that its NFP Friday so not an easy week to trade. I will look for bounce trades today & Thursday but as ever I will not trade Non Farm Payrolls.
Here are the main levels where I will look for trades.
Euro/$ has been bouncing off 1.3170 repeatedly in recent weeks and has done it again this week. I will look there fro longs. Today it has already done more than a days range and price is struggling at 1.3300 so I will consider counter trend/half stake shorts there from 4 hour charts. If you look on 4 hour charts you can see how strong these areas have been in recent weeks.
Aud: Continues to bounce off weekly fibs, so same areas again for me: 1.0370 and 1.0570 – intraday watch 4 hour charts for clues to short at 1.0500
Chf: 0.9200 and 0.9070 are the ranges, the more conservative is a pullback to 0.9200 to short
Cad: shorts at 1.000. Intraday look for clues at 0.9900
Euro/Gbp is too messy for me and I am ultra wary with all yen pairs AND Japanese bank holidays continue until Thursday so unless we see BIG pullbacks I will leave alone.
New members please note: If I am looking to take a trade long, at for example 1.6000 , I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.
We are NOT a “tipping service” our aim is to teach you how to trade for yourself. For more up to the minute updates do not forget to drop by the forum
Pierre, Vassilis (Capsmart), Raa, Omar, Mary, and other experienced members will be available in the forum to give you a more up to the minute assessment & whether they see any potential trades lining up in the next few days. Many members tell me this is the best forex forum there is (no back biting & bitchiness, nor spam, that spoils most forums) and all members are happy to help new visitors. Its a great resource, USE IT: Forex Forum
To View the Video full screen, click on the square shape, bottom right hand corner.
http://youtu.be/GAxTtpETyys