chart observations, economic observations, and FAQ of the Day‏ on the EA

Hi folks, how ‘bout a little “Macro Economic View” on what is (or will be) taking place in the world currency market.

As I mentioned yesterday, the euro may fall to a five-week low against the yen as momentum charts show “sell” signals for the European currency.
However, check this out from April 21 (Bloomberg): German investor confidence rose to the highest level in almost two years in April after stock markets rallied on government and central bank efforts to revive economic growth. So, go figure
The Swiss central bank bought 4.52 billion euros ($5.84 billion) in the first quarter to weaken the franc against the currency of Switzerland’s main trading partners and avoid deflation. So, be aware of their attempts at currency manipulation. It can cause Trends to develop.

Now for some observations on the Charts:
I use a Fibonacci on the 4-hr charts, and view these Fib lines on the 30-min charts. I would like to begin referencing my observations on the Fib. This isn’t something I urge y’all to go, unless you’re a geek.

AUD/CAD, AUD/CHF, AUD/USD, EUR/AUD
AUDCAD: Quite a Run we saw for the Aussie pairs yesterday. It ran to touch exactly on the 61.8 fib line. Today, it retraced back thru 38.2 to touch exactly on the 23.6 line. It has settled back to where it began at the beginning of the Monday session. I see no reason for it to do much in the way of additional huge move for the next 24 hrs.

AUDCHF: this seems to be in a broad Oscillation of apx 200 pips. Good news for those using the EA on this pair.

AUDUSD: nice Oscillations here. Good news for those using the EA on this pair.
EURAUD: heavy run yesterday, light retracement today. Seems that it may find some footing thru the Asian sessions. But, I’d be out of this pair before the European session begins,

EUR/CHF, EUR/USD
As I noted in the Macro Economic View above, the euro may be heading into additional weakness as it drops below the $1.3000 Support line. It took quite a hit yesterday, and seems to be taking a breather today. For the foreseeable future, play these with caution, and possibly during the Asian Sessions ONLY.


GBP/CHF, GBP/USD
Both pairs are bouncing between a couple of the Fib lines, creating a good Support & Resistance for the next 24 hrs. Good news for those using the EA on this pair.

From Monday: If you’re trading the GBP, you might want to give it plenty of Suspension time so as not be in any Open positions prior to the start of the European Morning Session (GMT 06:00), such as a Suspend time beginning at GMT 04:00 (which is CDT 22:00). This is only my thought on the matter; no recommendations or advice.

USD/CAD, USD/CHF
Both pairs are currently in some tame Oscillations. Good news for those using the EA on this pair.


FAQ of the Day:

Q. Which brokers are you currently live trading with & withdrawing money from?

A. We have found some good brokers, including FXDD, Alpari, and (for non-U.S.citizens there is). MBTrading has a new MT4 trade platform that is offered as of April, 2009.