The EUR/USD, which had been rising since the London open, managed to make a higher high during the first hour of today’s New York session. However, technical and fundamental analysis suggested that the recent rise might be merely a correction in the drop which began the previous day. The euro’s rise ended at exactly the 50% Fibonacci retracement level of that drop, and the continuation which followed produced a classic three-wave impulse pattern which reached the daily S2 pivot point at the London close. Those traders who took the shot and let the euro run, were rewarded with a 200-pip profit.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Hello Traders. For today’s London outlook I take some time to discuss money flow and how that impacts intermarket and currency correlations. Euro looks interesting today, we at a key daily trendline for Euro Dollar and I build a trade plan around a bounce or a break. I hope you enjoy the video and good luck today. David Pegler

Hello everybody. Today I build on yesterday’s analysis for cable. I spend some time discussing methods of dynamically defining trend and how to use that information between multiple timeframes. Today’s trade plan is quite simple I make use of pivot theory, EMA’s and basic support and resistance. Good luck and happy trading. David Pegler

The British pound had been exhibiting strength relative to the major currencies since the start of the trading week. During today’s Asian and European sessions, movement in the yen crosses was guided by ascending channels, suggesting some weakness in the Japanese yen. If those themes were to continue during the New York session….well, do the math: strong GBP + weak JPY = buy GBP/JPY. A channel trade on the pound yen netted 100 pips plus change during a trading session in which the U.S. dollar generally lacked inspiration.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Hello everybody, for today’s presentation I take a look at cable. We are trapped between some fairly strong visual resistance and some equally strong dynamic support. This affords us a well defined price trap; I line this up for you and more. Good luck today and happy trading. David Pegler

Hello Everybody. Good to be back after a day off. Today I address a pending Kiwi USD breakout setup forming and a Euro Yen long in alignment with the prevailing trend of the last 24 hrs. I keep it really simple, basic price action knowledge, fibs, support and resistance. I hope you enjoy this presentation!! David Pegler

PM Exchange - Stocks End Slightly Higher 01/26/09 05:10 PM

Forex TV - Companies such as Caterpillar, Pfizer, and Home Depot announce thousands of layoffs . Crude loses on speculation OPEC can’t do enough. Gold gains on safe haven buying. FX Bootcamp’s McDonell with his FX forecast.

Aligning fundamentals and technicals

1/26/2009
By Wayne McDonell
FX Bootcamp, LLC
http://www.fxbootcamp.com

The British pound last October.
Currency trading is fundamentally an issue of supply and demand. This will be a familiar concept to any experienced futures trader. For example, with the global economy contracting, there is less demand for energy. Stockpiles have increased. The fundamentals of weak demand and oversupply has driven down oil prices.

Canada , a big oil producer, benefited from high demand last summer. It attracted foreign investment and that drove the Canadian dollar (CAD) higher against the U.S. dollar. But in the current reversal, investors have fled t he CAD, once worth $1.10 USD, now worth $0.75. This shows that there is a clear relationship between commodities futures prices and the value of the CAD.

Another example is one from the equities market. When the Dow Jones Index contract falls the …

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