Hey Everyone, for this rather lengthy video I take a look at a basket of Yens including the USD Yen, Aussie Yen and Euro Yen. In addition to these Yen related pairs I also take a look at the Kiwi Dollar and Cable. Some reasonably involved analysis for a few pairs. I hope you enjoy the presentation and good luck today!! David Pegler

Hi everyone, for this outlook I go back to drawing on my old favorites; Euro Pound and Cable. Cable has been consolidated the last few days after some reasonably dramatic moves. I don’t expect this consolidation to continue and build a trade plan around a price trap break out. Not quite as simple as this intro implies but very tradable nonetheless. Good luck!! David Pegler

The U.S. dollar extended yesterday’s gains against the euro during today’s London and New York sessions. One opportunity to short the EUR/USD at a convergence of multiple levels of likely resistance, came together during the 30 minutes leading up to the U.S. equity market open. The dollar’s momentum increased following the release of a worse than expected October consumer confidence index from the Conference Board. The short trade delivered a profit of up to 80 pips [depending on exit strategy].

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Hi everyone. For this outlook I employ some very simple trend following analysis. I take a good look at the Aussie USD and Euro USD. The Euro analysis is slightly more complex in that we have hit a reasonably strong area of support and I’m cautious in my approach to trading it today. The sound quality is a little scratchy in places; however I hope you enjoy the video. Good luck!! David Pegler

The U.S. dollar rebounded during today’s New York session after hitting a 14-month low earlier in the day. A short trade from the top of an intra-day channel on the EUR/USD currency pair produced between 85 to 130 pips [depending on exit strategy].

Curt Wehrley
FX Bootcamp’s Quantitative Analyst

Here we are on the Monday right after the British Pound dove off a steep cliff. In addition, London’s time changed so that London open does not correspond with the normal London open for US traders, that goes back to normal Sunday when US times change as well. After such a massive move, we found ourselves in a bit of a range, playing ping pong between support and resistance throughout the first trading day of the week. Likely the best approach for extracting pips during this London session was going to be taking shots right off the tops and bottoms of these definable ranges using shorter term time frame clues ‘Around’ these zones, such as higher low’s or lower high’s. In this video I highlight one such trade plan that we executed in the room together involving the GBP/JPY. We identified a good deal of overlapping resistance around the 150.00 area on multiple time frames, then simply planned a low risk high reward short trade plan if and only IF we got a lower high to work with off this area, using a short term chart to zoom in. Sure enough it presented itself on a 2minute chart, a Lower High, with just 15 pips or so risk (very low risk on GBP/JPY), and a reward likely of 60-70 pips it was too hard to resist. As it were this trade dropped to around 40ish pip profit before pulling back near to entry for one final chance to get in or reload it, then fell for the remainder of the range/scalp trade right to our rising trend line. Hey take what you can get, we were ‘Scraping’ for our pips today, so a 60 pip trade was considered a Monster! =). Hopefully NY will kick it up a notch.

FXBootcamp London Currency Coach-
Christian Stephens

Weekly Pivot Points*
October 26 - 30, 2009

* - Based on a trading week starting on Sunday at 21:00 GMT and ending on Friday at 21:00 GMT, using price data from GFT’s DealBook 360 platform. To convert GMT to your local time, go here.

Weekly Pivot Points spreadsheet - This spreadsheet contains the weekly pivot points displayed above. The data can be downloaded in any one of several file formats by clicking the Export option on the spreadsheet’s menu bar.

Printable version - This is a printable version of the weekly pivot point tables displayed above.

Average Daily Ranges*
for use during the trading week of
October 26 - 30, 2009

* - Based on GFT DealBook 360 price data from September 28 to October 23, 2009. “Upper BB” predicts the maximum daily range for 95 of every 100 trading days, and is calculated by adding 2 standard deviations [of the ranges over the September 28 to October 23 period] to the average daily range.

London started off kind of slow today and we bounced around a bit looking for strength versus weakness. Most of us were in some sort of a British Pound long from late in the pre-London session, but we were starting to see some clues of exhaustion, time to take some profit, or protect pips. Then we took notice of the GBP/JPY pair particularly starting to show short term MACD divergence pretty much exactly when it was hitting it’s Daily 200ema, previous swing high on the Daily chart, as well as the Weekly M4 reversal pivot point. While none of us wanted to pick a top, that divergence at that resistance was such a clue of a possible impending short trade plan, that any Lower High development on this short term chart was reason enough to give the short a shot with a higher high stop, 20 pips risk or so, targeting about a 40-50 pip move before we reached support again, and we also had British GDP approaching in a half hour or so. The EUR/GBP was also showing a double bottom at 90 cents, as even cable had a short term lower high. This was starting to smell of GBP sell off just before news. Just before the news came out we were 55 pips or so in profit on the GBP/JPY short, definitely protect break even at minimum as news could evaporate all of it, or even take some partial profit. Well the GDP came out negative and Whammo, British Pound ‘Everything’ plummeted 200 pips in no time at all. So what started out as a conservative lower high off resistance trade attempt, turned into a 300 pip trade by the end, or much more if you were in all the GBP pairs. Simply an amazing way to finish a fantastic week, and a reminder to all of us why you let profits run once you have break even or MAP (minimal acceptable performance 15-20 pips) locked in. You never know which trade will be the monster like this. Have a great weekend folks!

FXBootcamp London Currency Coach-
Christian Stephens

A summary of today’s New York session? Let’s put it this way: The EUR/USD currency pair rose a net 15 pips over the course of four hours. Although profitable trades were attainable, they were also short-lived.

Curt Wehrley
FX Bootcamp’s Quantitative Analyst