Profit Mongers – Monday Trading Signal 08-23-2010

Posted on 23. Aug, 2010 by Sir Pipsalot in Forex Signals, How To, Random Noise

Hey folks,

EUR/USD managed a nice break lower Friday putting our Euro shorts in some solid profit, and while we may see a bit of retracement and consolidation, the window is open for the final push down to the 1.2420-1.2610 support region that I’ve been calling for for over a week now. In the meantime, for those looking for new trades, I would reiterate the “sell-on-rallies” approach and sell any decent 80-100 pip rallies, specifically just ahead of 1.2770 here on Monday if we can bounce high enough. A short from around there with a 40-80 pip SL should make at least 150 pips profit before the support region starts to come into play.

On USD/JPY, unfortunately, the fundamental/sentimental support for a weak yen seems to have fizzled out here over the weekend as PM Kan and BOJ Gov Shirakawa finally did have their meeting, but it ended up being a mere phone call with no talk of forex intervention and no discussion of additional easing. My hope was that the build-up to this meeting would see plenty of JPY weakness, and perhaps something weakening would come out of the meeting, but with the risk aversion in markets late last week, the best JPY could do was merely hold its ground. As a result I’d prefer to exit USD/JPY long either here for a small loss (85.36 as I type), or after a bit of a bounce near break even (around 85.70)… my original SL was 89.65 so I think it’s better to save the 70-100 pips rather than hope for a bounce based solely on technicals.

Stocks saw a bit of downside Friday that ended up as mostly consolidation, and while we may see a bit of retracement higher, as with the Euro for new trades I’d be looking to sell into any decent bounces, especially around support-turned-resistance levels. off the hourly chart. A confirmed break and close below 1066 on the S&P 500 should bring follow-through selling down to at least 1000 and probably more like 950.

In news Friday, we saw CAD Core CPI come in just low enough to hit our buy trigger, and we saw about 25 pips higher in the first 2 minutes, followed by a series of retracements and rallies that range traded from around prerelease to the spike extremes for several hours afterwards. There’s no tradable economic numbers due out Monday, but the later on we will see a good number of smaller, but likely tradable and profitable reports littered throughout the week, and I’ll do my best to give you all a good angle on them.

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Tags: Daily forex outlook, forex signal, forex trading, Profit Mongers, ProfitMongers, Sir Pipsalot, Trading Forex