Forex Trading Signal 05/04/09

[Crazy Cat]

Hey Folks,

Last week we saw US ISM data come out higher than expected, but not high enough to get the market rallying and not high enough to hit our planned trigger level, so no trade there. Monday starts off quite slow with some banking holidays and only a subpar US Pending Home Sales release for economic data. As far as currencies are concerned, we could see some strange moves here with low liquidity as many countries are on banking holidays today. It looks like the yen crosses may take a breather though and head lower, so look for some shorting opportunities on XXX/JPY pairs. Stock outlook is short term uncertain, but medium term we're still overbought and standing by for a more meaningful retracement lower towards 800 on the S&P. Any gold rally should encounter some resistance in the 900-909 area so that may be a good place to short it. Keep in mind though that once a more significant stock decline gets underway, gold will likely have a nice rally that pushes up through some resistance... so if you're playing gold short for the shorter term, make sure stocks are still above short term support.

Thanks,
Sir Pips

 

[bootnee]

xxx/jpy short

Sir, I am new to forex. I have a question. When you say Short the xxx/jpy's. do you mean that the jpy is weak or strong?

Thanks

 

[wmased]

wmased

In this case just look at the 1 hr chart on the $/ Yen and you will see it's at the top of the chart (resistants)..I think that's what he is referring to ..

 

[maxvre]

To short a pair means to sell it. The chart that you look at always refers to the first currency, the XXX in relation to the jpy or whatever second currency happens to be displayed.

In the opposite direction, to "go long" means to buy the currency.

 

[GEORGECHENG]

If you short in this case, you are saying jpy is strengthening.

 

[blackwidowfx]

Pending orders trading

EURUSD Short 1.3185 stop loss 1.3395, target 1.3000
GBPCHF Long at current prices 1.6900/50 stop loss 1.6700 target 1.7150

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EURUSD order was not executed, must be remoove now
GBPCHF was triggered, let it trade
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GBPCHF you can cash in today with 150 pips profit, or wait until next level 1.7200

 

[RedRobin06]

When you short a pair that means you are selling the first currency and buying the second. Therefore, shorting GBP/JPY is selling the British Pound and buying the Japanese Yen.

Pierre

 

[skydiver]

Sir, I am new to forex. I have a question. When you say Short the xxx/jpy's. do you mean that the jpy is weak or strong?

Thanks

Strong! Need less amount of JPY to buy the other currency.