Profit Mongers @ 12:58 AM, Tuesday October 05 2010
Hey folks,
Awhile back when we broke through 1.3150 again, I said the EUR/USD would likely rally to around 1.3800. I've actually mentioned that level a few times and we finally saw it get there Sunday night and top out. Now I think the technicals are finally lining up with the long term technicals I brought up two weeks ago:
http://www.forexpeacearmy.com/forex-forum/sir-pipsalots-daily-trading-signals/11913-sir-pipsalots-wednesday-market-update-09-22-2010-long-term-insight.html
I've been waiting for the good chance for a position trade short on the Euro for quite some time and it seems like now's the time. I'm short on the EUR/USD for a position trade (got it not long ago around 1.3670) with a 200-300 pip SL. I tend to manage my position trades with a bit of grid trading so I don't mind if we get a bit of a rally today (I think we may) as I'm set to sell into that rally.
AU Monday had no trade on Retail Sales, but there was a huge selloff on the surprise decision to keep rates unchanged. My guess was a 70 pip spike, but it turned out to be 80, so I was close. AUD should be relatively weak until the London close in the NY morning, so any retracements on either AUD/USD (0.9620, or 0.9640) should present good selling opportunities if a rally happens to mount. In news Tuesday:
0428 UK Services PMI (51.0 expected) - Sometimes this can move slow and steady other times it's quick and sharp. You never can be too sure which style will show up; however, in general a smaller deviation of 0.5 to 0.9 has a better chance of moving slowly (3-15 minutes) towards a 40 pip or so target, while a 1.0+ deviation should hit a 50 pip target and may do so more quickly.
--If it comes out at 51.6 or higher, GBP/USD should rally 40-50 pips
--If it comes out at 50.4 or lower, GBP/USD should drop 40-50 pips
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. Feel free to email me with any questions at sirpipsalot@profitmongers.com
To our success!
Sir Pipsalot
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