Easy Forex Signals Intraday Currency Report

Traders, motivated by indicators the worst may be over in Japan as well as the Middle East, acquired riskier assets including stocks and commodities whilst reducing exposure to safe-haven investments like U.S. Treasuries, the U.S. dollar, the Japanese Yen and the Swiss Franc.

The Dow Jones Industrial Average ran 178.01 points, or 1.5%, to 12036.53, carrying the index’s three-day surge to 3.6%. This rally is the Dow’s strongest three-day run since September. In forex trading, The euro rose to US$1.4203 to finish at its highest point in fourteen months.

Pushing up the confidence was AT&T’s $39 billion contract to acquire Deutsche Telekom’s T-Mobile USA unit, a deal which will develop the largest mobile-phone service company. Asian stock markets were generally higher Tuesday, brought by a upturn in Japanese stocks on signs of improvement in containing the country’s nuclear crisis, but markets remained watchful of new developments in Libya.

Forex traders followed stock markets this morning with traders continuing to accept higher-yielding currencies at the expense of the USD and the JPY, albeit less enthusiastically than yesterday as well as in a more mixed fashion.

EUR/USD MT4 online forex trader signals: The upper 20-day Bolli Band at 1.4218 is bullied higher by the EUR, although some stalling is likely to be as the solitary currency hardly ever trades over the upper 20-day Bolli band for long durations. The currency market framework is bullish nevertheless the upper Bolli band will have to climb to permit extra progress. The euro bulls are targeting 1.4281, November 4th high. Opinion is higher. 1.4242 was hit today. RSI is coming up to the overbought ranges, a modest correction may very well be in the cards.

GBP/USD metatrader 4 broker fx online trader: A similar picture to the EUR/USD pair here, but technically the pound has additional space to improve higher prior to stalling. The upper Bolli band, at 1.6381 currently, is ascending beautifully permitting the GBP more gains. RSI is at 60 adequately south of the overbought level of 70. MACD is in a bullish cross. GBP/USD is targeting 1.6500 handle.

USD/JPY metatrader forex day trading alerts: The 20-day MA, presently at 81.68, is capping the topside. A break above is likely to drive the USD close to 84.00. RSI and MACD have diverged with the MACD wishing to hang on to the bullish appearance, while RSI is battling to keep the momentum higher. Macro/Fundamental elements is the driving force.

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Easy Forex Signals Intraday Currency Report

Attention remains to be held on Japan and the Middle East, especially Bahrain, today as the predicament in both countries adds nervousness to an already volatile global setting. The nuclear catastrophe in Fukushima has reconditioned fears of stalled economic restoration while the continuing violence in Manama caused further flight to quality. Nonetheless, stocks regained ground, a move that didn’t transfer signals to the fx trading market.

A huge downside miss in U.S. Housing Starts and major upside miss in PPI signals a stagflation atmosphere which doesn’t bode well for the USD over a mid-term.

USD/JPY and also the whole JPY complex plunged in the twilight hours in between the New York close and the Sydney-Tokyo open on renewed worries concerning Japan and expectations of large Japanese repatriation to pay for expenses connected with the earthquake. Later this morning, closer to the London open, the USD and JPY regained a lot of the gains as the risk-aversion of the previous 3 days is abating.

EUR/USD Forex signals opinions for Metatrader: A pull back to the mid 20-day Bolli band at 1.3838 is probable. The sellers are urged by the individual currency’s disappointment at the 1.4000-handle. MACD is neutral today. RSI points to the south, agreeing to the commonly somewhat bearish bias here.

GBP/USD Currency signals for MT4: The general picture has rolled over to a neutral one. MACD is inside a decisive negative cross, RSI has likewise rotated lower. Nevertheless, the bottom 20-day Bolli bad at 1.6026 is showing to be a solid support for the sterling. The 20-day moving average at 1.6183 is behaving like a magnet. The 20-day mid Bolli band is a pivotal level.

USD/JPY Metatrader Forex Brokers Alerts Assessment: MACD is progressing on its bearish cross today, offering a unfavorable look to the couple. RSI is negative, just above the oversold level of 30. Almost certainly tight ranges will probably control here with the bottom 20-day Bolli band at 80.87 underpinning the action on the downside, at the same time the 20-day MA at 82.26 is likely to cap improvement higher. The fact that the bottom Bolli band was permeated yesterday and today, adjusts focus to additional downside.

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Panic Selling Slams the Market but Will Gold Hold?

Did you close out any long positions today? Well if not then you are one of a few!

Today (Wednesday) the market gapped down 1.5% at the opening bell which set a very negative tone for the session. Volume was screaming as protective stops triggered and traders close out positions before prices fell much further. This gap seemed to have caught several traders off guard but those of you who follow my newsletter knew something big was brewing and to keep positions very small.

Just before the close on Tuesday I had a buy signal for the SP500 which was generated from the extreme readings on the market internals. After watching the market chop around and get squeezed into the apex of the rising wedge the past 3 weeks I knew something big was about to happen and I did not want to get everyone involved because I felt a large gap was about to happen and the odds were 50/50. Instead we passed on the technical buy signal and waited to see what would happen Wednesday.

Below are a few charts showing one of my extreme reading indicators I use which helps me to identify possible short term bottoms.

SP500 - SPY Exchange Traded Fund

This daily chart of the SPY etf clearly shows that when we see panic selling in the NYSE which I consider 15+ sell orders to each buy order to be PANIC SELLING. This is shown using the purple indicator at the bottom of the chart. Today there was an average of 37 sell orders to every buy order which tells me the majority of traders are closing out all their long positions.

In an uptrend this indicator works very well and can help time a bottom within 1-4 days. As you can see on the chart below we just had a huge sell off and everyone seemed to be exiting their positions. This panic selling tends to carry over for a couple sessions until the majority of traders around the globe are finished selling.

The problem with this indicator is that in a down trend we tend to get these panic selling spikes regularly which means this time it may not work out because of the trendline break today which I think has officially changed the trend from up to down. Because of this possible down trend starting I feel its best to wait and see if it’s a dead cat bounce or if there are real buyers behind it, then we will take action to go long or short the market.

Market Internals - Put/Call Ratio & NYSE Advance/Decline Line - 60 Min Charts

Here are two charts which are currently at extreme levels. This typically means we a bounce should occur the following day or a gap higher. If you did not know there was a strong trendline breakdown today you most likely would have taking a small long position into the close.

The Put/Call ratio when above 1.00 means more people are buying put options, meaning they are leveraging themselves to make money if the market drops. As a contrarian indicator, if everyone is buying leverage to the down side then they should have sold their long positions already. That would mean most of the selling has already taken place in the market thus it should have some upward bias in the near term.

On the other side you can see the NYSE A/D line which shows how many stocks on the NYSE are advancing and how many have moved lower. When this indicator is below -1750 then we know the market is oversold on a short term basis and there should be some upward bias in the near future.

Now Lets Take A Look At Gold

Gold was left on the side of the road today as traders and investors focused on the equities market. I was actually a little surprised that it didn’t make a big move today because the US Dollar rocketed higher for the entire session. Anyone who has been watching gold closely already knows that gold is doing its own thing now… Some days it moves with the dollar, other days it does not… its become much more random than it used to be.

Anyways it looks to be forming two patterns… first one is a bull flag. If a breakout to the upside occurs thatwould send gold to the $1230-40 level.

The second pattern is a mini head and shoulders pattern which would send gold down to the $1180 area if the neck line is violated. It is a very tough call for gold.

Mid-Week Technical Traders Update:

In short, it’s going to take a day or two before we get a feel for the SP500 as we wait to see if it bounces with volume behind it. I personally would like a bounce so we can short it. It is unfortunate how the market broke down today. We were so close to getting a really good setup in either direction but the FOMC meeting shook things up and caused the large gap which in turn made a large group of traders miss that beautiful drop… It’s frustrating when you wait for something only to have a piece of news mess things up. That’s just part of trading though.

As for gold, I feel it’s a 50/50 trade and could go either way so I am not going to take a position right now. I’m just going to wait for the market to tip its hand a little more before I jump.

Learn how to buy gold and make great money doing it! Gold mining stocks is the best investment in ANY economy!

How To Trade Gold and Silver’s Volatility

Understanding the key differences between both gold and silver’s risk/volatility levels plays a large part in how I choose a low risk trade setup. Those of you who follow me already know the GLD etf is my favorite trading vehicle as it provides me with low risk trading setups along with a very high win rate.

Ok, let’s jump into to comparing gold and silver as trading instruments. I get the same questions from new traders all the time and I think these two questions will help clear them up.

The questions are:

Why don’t you give silver (SLV) trading analysis/signals? Why don’t you trade silver? My answer to the questions are simple and the chart below displays my view.

The gold (GLD) signals I provide work with silver so you can just trade silver when I have gold long or short trade. This is the reason I don’t provide much silver analysis because it’s duplicate info.

The chart below shows how gold and silver trade together when it comes to rallies and sell offs. But notice how volatile silver is while gold had a nice slow and steady trend upwards… Gold’s low volatility trending characteristics is what I love about it. Silver on the other hand is all over the place making it easy to have protective stops triggered before the majority of the trend is over. The silver charts almost always look terrible (tough to read for a direction). I really don’t like getting shaken out of a winning trade…

The pink circles show a quick short trade we did this week catching a quick 1% drop. The short trade was for FuturesTradingSignals where we capture 1-3 day extreme market sentiment shifts.

GLD - Gold ETF Trading Chart

The chart below shows several points as to why gold/silver was screaming BUY ME on Tuesday afternoon. The two things that carry 90% of the strength in my opinion are the candlestick pattern (Bullish Engulfing) and the volume surge. Those two things when seeing on virtually any time frame are a good indication to go long for 1-3 candlesticks minimum.

Gold VS Silver - 5 Minute 3 Day Chart

This chart clearly shows the power of trading a more volatile commodity with silver being the one. This week’s buy signal in gold is dwarfed by the performance of silver. Silver has always shined more in my opinion but when it comes to trading… It tougher than it looks to trade because of the wild whipsaw action it makes on a regular basis.

Gold and Silver Trading Conclusion:

In short, gold is the safe haven when it comes to actively trading. I do trade silver here and there but the size of my position is much smaller because of the difficulty level and volatility associated with it. I will not that I do trade gold and silver futures at times but for this report I focused on ETF’s.

Learn how to buy gold and make great money doing it! Gold mining stocks is the best investment in ANY economy!

Gold & the Overall Strength of the Market

The past week has been interesting to say the least. Gold is trying to find support while the SP500 grinds its way higher. Let’s jump into the charts and analysis to get better feel for what I feel is happening here.

Gold 4 Hour Chart As you can see from the chart below gold has formed a possible double top. The fact that it made a higher high is actually a bearish sign for the intermediate term 1-3 weeks. When we see a higher high getting sold into with big volume it typically means the big money is unloading large positions into the surge of breakout traders and short covering that occurs when a new high is reached. Following the big money is very important to keep an eye on as it can warn us of possible trend changes before it occurs.

The current selling volume is not exactly a healthy sign if you are looking for higher prices in the near term. If this pattern breaks down I would expect $1340 to be reached very quickly.

Keep in mind gold it in a strong up trend still. Shorting is not the best play in my opinion. I prefer to see pullback which washes the market of weak positions then jump on the long side for another bounce/rally.

SP500 Market Internal Strength - 10min, 3 days chart I watch these charts to get a feel for the overall market strength on a short term basis. The top chart shows the SPY etf breaking above a resistance trend line on Friday afternoon. This occurred on light volume meaning it is mostly likely a false breakout and Monday we could see a gap lower at the open or a pop & drop. The two other indicators are reaching an extreme level which normally tells us a pullback is due in the next 24-48 hours of trading. The question is, will us just be a bull market pause or will we get a decent pullback.

The red indicator in the top chart and the red indicator levels on the charts below that help us time the market as to when profits should be taken or to tighten our stops if we have any long positions.

The broad market is still in a very strong uptrend so moving stops up and buying on oversold dips is the way to play it.

Weekend Market Analysis Conclusion: In short, both gold and the stock market are in a bull market (uptrend). Trying to pick a top to short the market is not a good idea. Instead I am looking for an extreme oversold condition to help reduce downside risk before taking a long position.

The overall strength of the market (SP500 and Gold) I think are starting to weaken but in no way am I going to short them. We continue to buy dips until proven wrong because indicators can stay in the extreme overbought levels for a long period of time. Generally the biggest moves happen in the last 10-20% of the trend.

Learn how to buy gold and make great money doing it! Gold mining stocks is the best investment in ANY economy!