Technical Analysis EUR/JPY 07/10/12

EUR/JPY 4 Hour Chart, 05:00AM EDT 07/10/12

Hello, It is been a long time since my last post. Anyway I am back to bring you my latest intraday technical analysis.

Here we have the EUR/JPY 4 Hour Chart, we all know Euro is very bearish actually due to financial crisis and Greece at the brink of collapse.

However  we could see a technical movement to the upside, indeed we spotted a 4 hour bullish divergence on the RSI.

So my trade idea is to long the EUR/JPY @ 97.60 and stop @ 97.20. I will look for "just a 50 profit target since we still under an overall bearish market.

Good Trading!!!

Profit Taking on Bearish Signal

BLOG UPDATE, 05:00 AM EDT 06/11/12

I closed half of my position @1.2571, it is a 74 pips winning trade. As I mentioned earlier(below on the blog) in the day I will monitor the market to take the decision for the position left. However I think the 4hour 20 MMA @1.2543 will be a good level to exit.

Now the question is to know if EurUsd will fill all the opening gap of this day or resume his uptrend.

Good trading!!!

Bearish Divergence Spotted on the 2H Chart

EUR/USD 2 Hour Chart , 01:00AM EDT 6/11/12

Hello buddy,
We spotted a bearish divergence on the EURUSD 2H Chart(on the 1h also), and we also have a huge opening gap due to Spain demands for bailout and data release from China, boost the Asian markets and risk appetite.                                                                                                                   

EURDUSD made new high on the week opening while the stochastic did not  do the same on the 2h chart. Moreover the gap push the price ine the zone 1.2670-1.2640 which is delimited by the monthly pivot and the daily second resistance chart.
Another point the pair is on the top of the rising trend channel.

We can easily say in this this configuration that technically we have solids arguments to think the pair will fill the gap.

My trade idea: Short the Euro @ 1.2645. I will place my stop @ 1.2675 (yes I know it is tight).
My profit target is on the first daily resistance @ 1.2571 which turn out in this situation as a support, I will close half of my position at this point and will monitor the market to take the decision (update will coming on the blog).

Good Trading !!!                                                                      
                                              

Fitch warns USA credit rate

Ten months after the downgrade by Standard & Poor's of USA credit rate, Fitch, the London based credit agency warns United States about a possible credit rate cut in 2013. In his statement, the agency mentions that there is not a credible plan in the US fiscal policy to reduce deficit. you can watch the article on Reuters.

German Bank Moody's downgrade, Is there a opportunity to short Eur/Usd?

The avalanche of downgrade by credit rate agencies have take another level today by the downgrade of six German bank and their subsidiaries following those of  prominent Austrian bank.

We have to notice that the two countries have a triple A credit rate and German economy seems safe since the beginning of the euro crisis.
These news bring more more turmoil on the already trouble water of the Eurozone.
we can watch a good article about the downgrade on ZeroHedge.

And now to come to the field of forex, these downgrades bring a fundamental support to the resume of Euro downtrend that we observe today after a counter-trend rally on Friday and Monday.
I will wait for a clear candlestick bearish signal on the 2h or the 1h chart preferably in the 1.2470-90 zone to enter in a short trade. So I Sell Eur/Usd @1.2480 and place my stop @ 1.2520.

Good Trading!!!

Took profit on my Eur/Usd Short (140 pips win)

I closed my EURUSD short trade after a 140 pips gain. Still think that the pair could go lower but it is enough for me for today and also because Eur/Usd reach the 1st intra-day support. You can watch the advice I made today below on the blog at 08:00PM EDT.

Bearish Divergence spotted on the EUR/USD 4H Chart (6/5/12)

EUR/USD 4 Hour Chart , 08:24PM EDT 6/5/12

 
Friday and today, EUR/USD made a rally which is a short-term countertrend of the strong downtrend of the Chart which took place in May.
However we spotted a Bearish Divergence signal on the 4h Chart (price made lower high while stochastic made higher high). Is it an opportunity to sell the rally? Fundamentally we know that the Eurozone is in a pretty bad shape and even if the US economic is not sleek too, the Euro have more troubles since Greece is maybe at the brink of a single currency exit.
My idea: sell on the daily first resistance at 1.2545, stop at 1.2585.
Note that it will be important to wait for a formation of a good candlestick signal before enter in the trade.

Good Trading!

Another Forex Trading Interview on RTFX

Forex people, I made another interview with on the website of the European forex broker RTFX. I am not a professional trader but I think is good for amateurs like us to share our experiences and difficulties on the road to succes in forex tarding. You can watch the interview HERE.

Good Reading

RTFX Website Contest Interview

Two weeks ago, the European broker RTFX sent me a tweet @ericgohi to say thanks for my article about the Forex Contest that he organized http://ericgohi.blogspot.com/2011/11/forex-contest-2011-2012.html. Then they suggested me an interview, an offer to which I answered yes without hesitation. Here is the following article:

http://championship.rtfx.com/2011/12/the-last-article-until-next-week/

Enjoy your reading!!!

Forex Contest 2011-2012

The 2011-2012 Forex Contest co-organized by the french economic magazine Capital and  the broker RTFX is open since 2 months right now. Traders have a virtual 5 000 000€ portfolio to manage by speculating on the currency markets.

The contest was a great success in 2010 as the great number of participants (more than 5000) from all over the world showed. Initially reserved only to the residents of the EU , it opened last year to traders from all countries making by this way the contest more popular. Beyond the hunting of prizes, this competition constitutes a formidable experience for all those interested by the forex market especially for the beginner.
Indeed trading begin with practice on demo account until you feel to be ready to go on real account, in this way practice with challenge is better by the fact that it involves stress that traders will have to cope with on real account, so participing to this contest is a tremendous experience and learning tool for all beginning trader.

Features of the Contest includes:

-A general ranking with the following prizes:

20,000€ for the first, 10,000€ for the 2nd, 6,000€ for the 3rd and 2,000€ for the fourth to the tenth

-Monthly prizes with the following prizes:

5,000€ for the first, 3,000€ for the 2nd, 2,000€ for the 3rd and 1,000 for the fourth to the fifteenth

But also the now famous Miles. The principe of the miles is simple, you have to gain 0.5% or more(+25000€) in a daily trade to earn 40 miles and when you will reach 1000 miles you can convert it in a 1000€ forex account. Meaning that you don't have to be in a ranking to win an account, you just have to pursuit the goal of reaching 1000 miles.

Traders from worlwide don't hesitate to dive in this experience and confront your trading skills with others traders. Inscriptions are possible throughout the during of the contest right here.