Sir Pipsalot's Monday Market Update 04-12-2010

Sir Pipsalot

Former FPA Special Consultant
Hey folks,

Well, the EUR/USD indeed did bottom out there around 1.3300 as I had been looking for all week, and even reminded everyone daily including Friday:

Well, EUR/USD rallied out of my buying range perfectly. The last several days I've mentioned the EUR/USD would be a great buy in the 1.3250-1.3300 range, and we bottomed out with the lows for the day today at 1.3281 with plenty of time and reattempts of 1.3300 to encourage that long entry. Hopefully you remembered my advice and saw a similar opportunity there. In any case, I'm now biased more bullishly on the EUR/USD and I think we should see some decent additional upside to the 1.3500's at least and quite likely something near 1.3800 over the next 2 weeks or so. With the EUR/USD at 1.3355 as I type, getting in now or on a bit more of a dip with a fairly wide SL isn't such a horrible idea either.
It looks like the retracement has accellerated due to a freshly announced bailout plan for Greece, so the 1.3800 figure seems mere days rather than weeks away. For those of you who keep up with my signals and found an opportunity at some point last week to get long, I would take some partial profits if you haven't already just in case, but otherwise I'm looking for around 1.3750-1.3800 for my final TP. It's possible we may work down to close the weekend gap up first, so a buy in the 1.3500-1.3540 range could be a great chance to get in on a gap filling run that's likely to reverse back higher. Keep in mind though that the gap up is so large there's a good chance we'll tag the 1.3800 region first before heading lower and filling the 1.3500-1.3600 gap.

Stocks managed to thwart my bearish call though by rallying through my SL. I still feel strongly that stocks are near a major top, but that top has been very tough so far to spot in the short term with a lot of head fakes. Hopefully the near term picture will clear up soon.

In news Friday, CAD Employment came out only a bit low, not hitting a reliable trigger, but USD/CAD still managed a very strong sustained rally. Just goes to show the power this report can dish out when it's in the mood. There's no key news items set for a Monday release.

That's all for today's update. If you'd like to learn more about trading or trade along with myself and my collegues, come join us at Profit Mongers. Our subscription is very reasonable at $179 per month, and right now you can sign up for a 2 week trial to get started for only $29. This offer is for new customers only. If you have any questions, you can also email me at

To our success!
Sir Pipsalot


I've been following your market updates on EURUSD
for some time now and I can see that following your instructions can
be quite profitable in about 80% which is amazing for such volatile
market as forex.

thank you and hope you will continue to provide such accurate updates.