THOUGHTS FROM JOHN ON THE EA

Fundamentals: There is a lot of news coming out for the rest of the week including GBP Official Bank Rate, Euro Minimum Bid Rate, and comments following, unemployment and employment for many countries, and housing starts, so be aware that the market may be very choppy. So keep your eye on the news closely before just letting the ea go for a run. (Open Forex Factory and scan through all the news items.)

AUD/USD: This pair seems to have finally rested at after aggressively running to the 38.2 fib line on the larger time frames. Unless major news pushes this pair further, I would look for the aud/usd to continue to consolidate between .7250 and .7475 (38.2 fib).

Euro/AUD The price has been trending as the Aussie has been taking back some of it losses. The price is headed towards the 61.8 Fib line on the larger time frame charts, but has been consolidating for the past day and a half. As major news is coming out, I would be very cautious on this one. The recent news on the Euro has been more negative than positive, and for the Aussie, more paotivie than negative. If this trend continues, then we would see the price moving to 1.7650 area of the 61.8 fib.

Euro/CHF Price is holding on the 38.2% fib line. Price has oscillating along this line for 2 weeks now. This pair has a tendency to run in a consolidated mode for a while and then go into a 400+ pip tend to correct itself. The 13, 50, and 89 ma’s are consolidating very tightly on the 4 hr chart which may mean a move is afoot soon… the ma’s don’t like to be squeezed together. I think this pair will require some strong news for or against one of the currencies to make it move.

EUR/USD Price seems to have held at the 23.6% fib on the larger time frame charts. The pair seems oversold on the 4 hr and the recent 4hr price has been using the 23.6 fib as support. Look for news to push this below the 1.3200 price point.

GBP/CHF The pair has been slowing creeping back to the 23.6 fib line on the larger time frame. And in doing so has been a steady oscillating pair, with minor corrections every every 2 to 3 days. I would look to see the price consolidate on the current move of today before trading.

GBP/USD The price currently consolidates on the 1.500 price point, which it has tried to break through 6 times before since last November. Watch the news reports this week and there will probably be a lot of volatility. This you may want to not trade until all the relevant news is out.

USD/CAD Price is still in a downward channel after 9 weeks. The past 2 days has seen the price hold at or near the 200 ma on the day chart. Upcoming news will be important to see if the 200 ma holds. Tread carefully.

USD/CHF Price is holding above the 38.2% on the fib lines, which is at 1.1300 on the larger time frame charts. Wait and see what the news brings on this pair as it likes to move quickly on short term trends, which is not good for our trading.

Today’s Q & A:

Q. What money management is built into the system?

A. Proper Money Management is a human decision, a decision make by the individual trader. It is not determined by an EA.

One of the most important aspects of Money Management is Lot size. You, the individual trader, determine this. Realize that due to the very high number of trades the eaFXTrader places, the Lot size per Entry is of critical importance.

Some users of the eaFXTrader use 0.1 Lot (this = 1 mini-Lot) per $20,000 in account size. Please do not read this as professional financial advice, but rather a rough estimate of Lot size per account size that some folks consider to be a smart way to trade.



John_eafxtrader