‘W’ formation with Fibs
Posted by Cire2222 on Jun 12, 2008
days ago I told readers about the ‘W’ formation in the USD/JPY forex pair. That trade has worked out great, I wanted to show you a chart of the formation along with fib extentions to find targets for the trade. In general I will place my orders in front of the target to make sure I get filled. The ‘W’ formation is an easy one to spot. The entry comes after a flag type pullback and breakout, the targets are found by using fib extensions, see the chart below.
not much changed
Posted by Cire2222 on Jun 4, 2008
Past couple days I have been talking about Dollar strength. The two places I wanted to be were EUR/USD and USD/JPY, these trades have been working out well. In the charts below you can see the EUR just getting no love the past few days and the USD/JPY moving up and looks like it may be breaking out of the classic ‘W’ formation. I would recommend taking some profits off the table here but No reason to take the whole position off, both these trades should continue the move.
Dollar strong
Posted by Cire2222 on Jun 3, 2008
Just last night I posted about the Dollar being a key market right now and boy did it make headlines today. Fed Chief Ben had some hawkish words on inflation and the market now thinks the rate cuts are over, the fed fund futures are even pricing in a chance of a rate hike. The EUR/USD was the best spot to be as a dollar bull just like I mentioned last night. I also like the USD/JPY pair but I do not like its intra-day correlation to the stock market with this recent weakness. The USD/JPY didn’t give me the close I wanted but I continue to think it will move higher. The dollar and oil should continue to be key markets for now.
