Daily FX | Dynamic Trader Blog

CADJPY Break Out

Hello dynamic forex traders,

I hope you enjoyed your weekend and spent some time preparing for the trading week ahead.

The CADJPY recently passed the VI after convrgence of MACD on the daily time frame. This has now been added to my watchlist and for those new traders looking for an entry, go down to a smaller time frame to establish a low risk position but as always beware the traders remorse.

Todays forex trends chart taken from the Dynamic Trader Trend Analyser is below for your guidance.

You can read Javid's forex update on our sister forex blog.
You can read Richard's update on our other sister forex blog.

I wish you all a good trading week.

Anne Chapman
Currency Analyst

Dollar direction

Hello dynamic traders,

As you may already know, some of the major pairs are in a consolidation phase so I though we could look at the Dollar Index to see what is going on.

The Index has been in a decline from the beginning of March this year and demonstrated an almost accurate measured move in the pullback later the same month. After reaching it's previous resistance level it promptly continued it's move to the VI. After breaking that with a flag and continuation to another almost accurate measured move a consoldation has ensued. This consoldation has given us a triangle formation and this morning the last price as you can see from the chart below has broken the lower support level but as you know this could be a fake breakout.

If the Index has indeed broken out and continues the slide down we have support in the 7800 zone and to the upside we have resistance in the 8200 zone.

Watching this Index will help us in analysing the majors.

Chart of daily Dollar Index below is by courtesy of Advanced Get and the data is provided by eSignal.

I would like to congratulate Prakash for last weeks excellent trading. Very well done and you have every reason to be very happy with yourself.

You can follow me on Twitter here.

Good trading...

Anne Chapman
Currency Analyst

What next?

Good morning dynamic traders,

The Dow Jones has been in a decline since October 2007 and from March 2009 this market has bounced. More recently it tagged a resistance point and has again started to decline postMACD divergence.

If we examine the daily Dow a little closer we can see that a head and shoulders has formed at the VI. Right now we are close to the figure but if the decline continues short term then we might see further weakness of another 500 points. Beyond that support we have room for another 1000 points.

This will be a concerning time for the Dow and the S&P is not too disimilar so let's wait and see what develops here as of course this could be some form of profit taking. Why not study the chart and make up your own mind.

 

Chart courtesy of Advanced Get. Data supplied by eSignal.

Javid Shaik
Forex Analyst

New Trading Week

Good evening dynamic traders,

Now that last weeks NFP is behind us we can get back to normal trading again although we still have UK bank rate to contend with later this week.

The GBPUSD has provided gains on the long side over the last couple of months and is now in consolidation. Although forex is renown for it's big trends, trends occur based on certain factors such as how well the country is performing against it's counterparts or how many have been made unemployed this month or what the current interest rate is. Fundamentals has often played a big role in directing the price and this is usualy the case at times like now where the GBPUSD is waiting for some form of guidance. In the end the guidance will be provided by either the bulls or the bears but right now they are fighting amongst themselves with no real belief in their cause. That may change later this week where the price could perform a breakout for a continuation or reversal but it could always stay in it's comfort zone and bore us with some further consolidation above the value index.

The Dynamic Trader members who are not already in this position will know what needs to be done here and should act according to what Javid has shown on the forex webinars.

I was going to attach one or two screen shots of the GBPUSD but as it is moving sideways I thought instead I will put up a few photos from yesterdays day out at Wimbledon. We have more than 200 pictures from all three of yesterdays games but I took the first few of the bunch only so not to inundate this blog with tennis.

There were a few famous faces in and around the Royal Box.

Sue Barker interviews a few legends.

Warming up for the Women's final.

Hope you all have a profitable week.

Good trading...

Anne Chapman
Currency Analyst