Hello.

Thanks to David P. for submitting in a comment and asking us to do an anlysis on the USD/CAD.

Looking at the USD/CAD, it seems that the downtrend will continue - at least for a short time further.

Look for it to potentially hit the 1.0750 - 1.0700 area. Once it hits that area, we’ll have to look at it again because it does seem like the downside selling is losing steam so a reversal may be right around the corner.

This is a tricky week as we have the NFP coming out in a couple days and traders are definitely gearing up for that.

Be sure to perform your own analysis in multiple time frames before getting into any trade.

If there’s nothing before the NFP, we’ll come out with a USD/CAD analysis sometime next week after the market settles from Friday.

Thanks again and please let us know if you have any more questions/comments.

Greetings everyone.

We saw the EUR/USD break a major resistance trend line - which could potentially signal a bullish move coming up.

Our technicals indicate we are potentially going to see a short term upward movement coming up to the 1.4700 area and above.

Trading may remain relatively soft as traders gear up for the upcoming NFP so watch for whipsaws.

Happy trading.

Cheers.

Greetings.

We saw a major drop off in the EUR/USD recently and it seems we may have potentially formed a top at the 1.4800 level.

We’ll wait to see what unfolds on Friday and the start of next week.

For Friday, look for a potential short term move up into the 1.4720 area and above. Once it tops out, then look for the pair to go short. It appears like we may be in a short term 3-wave corrective Zig Zag up.

If this current move up completes in 3 waves, then we may potentially be looking at a triangle formation forming - however, we must wait and see what unfolds.

We hope everyone has a great (and profitable) trading session today. Remember to apply your money management - preserve your capital.

Good luck and we’ll see you again shortly. Have a great weekend!

Greetings and welcome back.

The EUR/USD retraced back to just above the 1.4600 area and is now potentially back up on the rise - although trading cautiously as we approach the upcoming FOMC announcement.

Technically speaking, look for the pair to potentially hit the 1.4775 - 1.4850 area. It looks as if the pair has potentially completed a nice 3 wave retracement so we’ll see how the news effects this currency pair and if it will push the EUR/USD up.

Good luck with your trading and we’ll see everyone again shortly.

If you’re going to be trading the FOMC announcement on Wednesday, be sure to join FX Street’s Jerry Furst for his live webinar during the announcement. Click here for more information.

Cheers.

Welcome to Part 2.

We’re looking at this last movement as a potential 5 wave movement up. Although it may not be the cleanest 5 wave movement, because of the overall bullish sentiment, we’re going to show you a potential outcome of this current movement.

If this is a 5 wave movement up, then there are 2 major points we’re looking at (see chart).

Here is how you incorporate numbers into this current trade - and this is all from general Elliott Wave theory. Also, this is not a complete list, but enough to show you how to potentially look for price projections/targets.

1) Wave 4 cannot retrace to the area of Wave 1 - hence, we have a line there at the top of Wave 1. If it goes below this line, this will invalidate this forecast.
2) Wave 3 cannot be the shortest wave - well, it’s definitely longer than Wave 1 so this passes.
3) Wave 4 will most likely retrace between 38.2 - 50% of Wave 3. So, if you draw a Fibo from the start of Wave 3 to the end, you’ll see that:

38.2% - 1.4687 (which it crossed)
50% - 1.4663

So, this is the major one here. You can look for a pull back to the areas listed above (one of which has already hit) and look for a potential trade entry.

Again, there are some things that don’t really fit with a nice 5 wave movement, so be sure to apply your own analysis and technicals in different time frames to support any trade entries.

Good luck with your trading and have a happy weekend.

Greetings.

The EUR/USD is still showing signs of bullish sentiment - however, we may potentially see some short term selling action in the last trading day of the week.

Look for some short selling - potentially to the 1.4660 - 1.4640 area. Once the short term selling is complete, look for a continuation of the longer term up trend.

We’re going to split our entry into 2 parts today. If you’re interested, we’ll upload some analysis on what to potentially look for in real time.

Greetings.

The EUR/USD is still rising and the question remains - is there more upward movement ahead?

From our analysis, it does show that there is more movement up to potentially hit the 1.4800 area and above (all the way up to 1.5000).

Shorter term, we may see a slight dip as we go through the European session and into the New York session - look for a potential of 1.4620 area and below.

As we see this market making large movements, be sure to apply your money management and use your stops in case the trade goes against you. Don’t turn a bad trade into a disaster.

Good luck and we’ll see everyone again soon.

Happy trading.

Good morning.

We’ll cover the recent developments of the EUR/USD and get to a comment submitted by Sum.

The EUR/USD broke the 1.4600 level and it seems like the bulls are starting to lose a little steam as we crossed the 1.4600 area. We are seeing some divergence in the technicals so look for a potential shorter term pullback. If it were to continue up, look for the currency pair to test the 1.4650 - 1.4700 area.

Sum submitted a comment asking about the bottom of the down side. First off, thanks very much for submitting your comment and I hope I interpret the question correctly. It seems like we’re looking for a projection to the downside once the upward movement is exhausted and the pair turns down. If this is the question, then, at this point, it is a little difficult to determine a price projection. However, if we  HAD to give one now, then we’d say somewhere in the range of 1.4200 and below. We use a combination of Fibo projections and price calculations based on different market movements.

I hope this answers your question. Again, once we start to see how the market unfolds, we’ll be able to give more exact projections.

Have a great trading day today (Friday) and we hope everyone has a very happy (and safe) weekend.

Trending in a sideways channel for a while on shorter term charts, we saw a break out of the EUR/USD to the 1.4400 level just prior to the opening of the European session.

On the hourly chart, we see that we are still potentially forming the a triangle formation.

This upward movement may potentially show more upward movement to the 1.4480 area and higher. After a short term high, we may see a turn to the downside. When this happens, watch the trendline on the hourly chart.

Welcome back and we’ve got some great updats coming to The Trader’s Edge this week. Stay tuned.

As somewhat expected, we see the dollar trading in ranges amongst the majors.

Analysts are predicting the unemployment rate to rise back up to 9.5% and the number to come out between -240K to -220K.

For the EUR/USD, we see sideways movement and hopefully this breakout will help unveil some clues on its direction. On the upside, watch for price levels to potentially hit the 1.4360 area and downside movement to hit the 1.4100 area (potentially down to 1.4025 area).

Just a short distance from a major price point, the USD/JPY may have potentially seen a short-term bottom yesterday at the critical 91.75 price area. A break of this will potentially open up the pair for increased short trading. Depending on the report, look for upside potential to hit the 94.25 area.

Good luck with your trading in just a little over 4 hours from now.

We mention this all the time but if you remember this on one day - this is the day to watch your trades and place your stops. With all the high volume action, it is also important to watch you trades as well.

For those in the United States, we hope you have a happy (and safe) Labor Day weekend.