Hello.

Look for a potential continuation of upward pressure in the EUR/USD. There are many key levels to watch for - the first being the high of 4/29/09.

If it breaks this level and spreads away, then look for the currency pair to test the 1.3390 level.

Use your money management and apply your stops. Good luck and we’ll see everyone again shortly.

Hello.

Just a quick update to let you guys know (if you don’t already) that it is time for the FX Street Trader of the Year competition.

From what I’ve read, it seems it’s a little different format than last year - the major difference being that you must trade a live account rather than a demo ($2,000 live) (I just saw that there is indeed also a demo contest if you’d like to participate in that as well).

It’ll be interesting to see how this (live contest) affects the outcome as it is very different (as most of you know) when trading live vs. trading demo. People will let their losses run (thinking it will eventually go in their direction) and cut their profits short. This is where trader’s must apply their money management to do the opposite - cut your losses short and let your profits run.

It also said that the winner will receive a proprietary trading position at Nord Markets - very cool.

The contest starts on May 4 so be sure to check it out here.

Good luck!

Hello again.

Here is a screen shot of the USD/JPY daily chart.

We saw a longer term movement down - followed by a retracement up.

So, the million dollar question? Is this retracement over or will it reverse?

Well, we saw it almost touch the 61.8% Fibonacci level and start heading back down. If you view our trend line, you can see we are right on the trend line.

Here’s what you look for. If the currency pair breaks the line and starts to spread away, then your next level to watch will be the 31.2% Fibonacci level (96.00). If it breaks that price and starts spreading away, then look for a nice movement down - keeping in mind it still can potentially reverse on you.

At that point, you can re-analyze the pair and see where we are in the wave count at that point.

Remember to use and apply your money management and place your stops.

Good luck.

Hello.

If you look at the EUR/AUD 10 minute chart, you’ll see that there was almost a textbook 5 wave movement up. It is always nice to see a seemingly “clean” move up in the market.

What’s next?

Look for a 3 wave retracement to the down side to complete Wave 2.

Currently, it looks like we may be nearing the completion of the first retracement wave (Wave a) - so look for the currency pair to head back up for Wave b and then back down to Wave c.

Good luck.

Hello.

Will the USD/CAD continue to rise? Fundamentals aside, there is a potential good trading opportunity here.

Our analysis shows we will come back down before heading back up.

Is this analysis contrarian? Sure it is. The pair may break the previous high - however, this could be a wick where a lot of people get “wicked” out if it wicks up and then heads back down.

Since we’re near the previous high, one may consider a short here, putting a stop a way’s above the previous high to not get “wicked” out.

If the trade goes against us, we get stopped out at our stop, however, if our technicals are correct, then we’ll be in profit. If it goes our way, as the trade progresses more into profit, move your stops down.

To help determine your “stop loss” price, you may consider a risk vs. reward ratio - which varies from trader to trader. A general consensus is a 3:1 ratio (again, some may have a higher ratio or lower ratio).

If you put your stop at 25 pips, you would put your limit price at 75 pips (giving you a 3:1 ratio).

Again, this is completely determined by your own personal risk tolerance, trading style and money management.

Whatever you do, be sure to always put your stops in and adhere to your money management.

Hello.

We have done a video update for the EUR/NZD where we walk you through the technical analysis to come up with your trade analysis. Click here to access the video.

Remember to apply your money management and use your stops.

Good luck.

Hello.

We’re working on a screen capture for you but one potential trade to watch will be the EUR/JPY.

We saw a nice movement down, followed by a sideways trend and have since moved up to peak at 132.25. Watch for a continued movement up followed by a movement back down?

How far up you ask? We’ll have that for you in our next post with a screen capture. See you then.

Hello and we hope you are having a nice weekend so far.

After a closely watched employment numbers release in the United States, it seems we could potentially be forming an Ending Diagonal (ED) on the EUR/USD 5 minute chart.

Enjoy the rest of your weekend and we’ll update our blog with a full report at the beginning of the week.