Euro Dollar Stagnant

October 31, 2005

The EUR/USD hasn’t done much since overnight yesterday when it declined downward. It sits at 1.1977 for a 75 pip unrealized profit for me. I’m reading that there are stops at 1.1960. I’m actually projecting the price to reach as low as 1.1955 before retracing.

It looks like technically, if a breakout doesn’t occur, the EUR/USD will range trade this week between 1.1955-1.2100. I still think that the dollar can remain strong the rest of this year as we should expect at least 1 more interest rate increase this year. If a breakout does occur to the downside, as the right triangle formation would indicate, the EURO could continue to decline to 1.1400.
Read more for daily graph.

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Currency Trader Magazine

October 31, 2005

I stumbled upon Currency Trader Magazine which is a downloadable magazine freely available if registering.   I actually found it to be quite good.  The October 2005 issue provides industry news, analysis of the sterling and swiss, an article on the post-Katrina economy, an article on how to define support and resistance levels using pivot zones rather than concrete horizonal lines, and also a detailed analysis of an actual trade.  It offers smaller tidbits like global news briefs and a global economic calendar for the month.  I haven't read through all of it but once I do, I will attempt to summarize some of the better articles from this issue.  You don't have to register because I've provide a link for you to download it directly. 

Content Removed: Download from http://www.currencytradermag.com

USD/JPY resistance broken

October 31, 2005

The dollar looks to have finally gathered a little steam in breaking through the 116.00 resistance that has been holding for weeks now.  Could the consolidation that has been going on been a precursor to a continuation pattern in favor of the USD?

EUR/USD shorts

October 31, 2005

I’ve had a decent start to the week since initiating a sell of EUR/USD at 1.2054.  The Euro has since traded as low as 1.2002 for a 40+ pip increase.   I stuck with the trend which has been downward and favorable towards the dollar.  I based a lot of my trade on the daily technicals shown.

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Latest CFTC Report Released

October 28, 2005

The new CFTC Report was released today and is located at http://www.forexproject.com/Forex_Volume/.

It looked as if a flip to net longs for the EURO may occur this week but it didn’t happen as longs lost more positions.

In looking at the limited movement in Yen positions, it’s reflective in the way the USD/JPY has traded over the last couple of weeks; within 100 pip range. 

EUR/GBP Symmetrical Triangle Formation

October 28, 2005

This was originally posted on 10/20/2005.  I’m putting it at the top again because a currency analyst at dailyfx mentions it today: EUR/GBP Large Triangle Setup

I’ve spotted what definately looks like a symmetrical triangle.  I’m expecting a big breakout that could possible net 300+ pips.

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Forex Historical Data

October 27, 2005

Foreign Exchange Historical Data is tough to find especially if your looking for the free kind.  I’m obtaining my historical data from Gain Capital, a reputable company.  It is available from their website at http://ratedata.gaincapital.com/

I have to start the database import and processing all over again because I realized that Gain Capital didn’t have all of the month’s data in an end of month file.  Sometimes they do and sometimes they don’t.  If you are going to use their data, notice that it is split up into weeks depending on how many weeks are in a given month.  Sometimes you only have to download the last weeks data as it should contain all the previous weeks data.  But I’m finding that isn’t the case for certain months. 

This is going to take a long time so in order to try to get my "Project" off the ground, I’m just going to start with the EUR/USD and then when I have more computing cycles, I’ll process the data for the other currency pairs. 

Currency Trades made last night

October 27, 2005

I made 2 trades last night that are currently in negative territory.  Both trades were based on overbought/oversold indicators using MACD, Stochastic, and RSI.  I also based my trades on support and resistance lines.  I’m sticking with these trades and setting wider stops than usual.  Read more to view my trades.

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The Forex Projects

October 27, 2005

The goal of this site is to provide a place for non-institutional traders to discuss techniques and anything else that can make us successful. This brings me to my vision of what this site can become. In the spirit of open-source, I would like to experiment with the help of others in devising trading strategies based on historical and real-time data.
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Trade Forex for the Long Term

October 27, 2005

The longer I trade, the more I realize that trading is best if done intermediate or long-term.  Let me site an example.  Back a couple of weeks ago, I posted that I was finally taking my losses on a trade like a man.

Forex Trade

 
 I lost 310 pips on this trade and only stuck with it for 2-3 days.  The price of the GBP/USD today is 1.7844.  So if I had held on to that trade, I would be up 43 pips today. 

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