The CommandTRADE Blog

Caught some pretty good looks over the last couple days...

Looks like USD/JPY is getting pretty close...

Long Rules:

Short Rules:

Exits need some work...

USD/JPY:

Derek...

From Blake's Forex Wrap:

"The EUR/USD is getting very close to two support levels that should garner your attention…1.38 and 1.3750. These two levels should at least temporarily deter stabs lower. Resistance will come in at today’s highs at 1.3950 and 1.4000."

Potential Long Rules: Box in the support level and partner with green lights

Potential Short Rules: box in resistance and partner with red lights

From Blake's Forex Wrap:

"The GBP/USD looks vulnerable to a pullback in coming sessions. I am looking for a break below 1.6300 tonight and quite possibly a move towards 1.6000 later this week as long as equity (stocks) selling persists."

Potential Short Rules: Look for the break below and partner with red lights

From Blake's Forex Wrap:

"The USD/JPY is very close to breaking down. The 95.50 level is a HUGE number to watch. My assumption is below here, we may see a mass exodus out of all JPY pairs (short term) and especially targeting AUD and NZD/JPY…the commodity currencies."

Potential Short Rules for AUD/JPY and NZD/JPY: look for the break below on USD/JPY and partner with red lights

Thanks,

Derek Siek... dsiek@wizetrade.com

The fx market tends to move in a cyclical pattern in terms of trending conditions.  The periods tend to shift between the Asian, European, and North American sessions.  A lot of time the dominate currency will tend to produce which session we trend in. 

Right now, the USD is leading all of the currency pairs in terms of establishing directions.  One of the major shifts we've seen over the last couple of weeks has involved the USD/JPY.  For roughly the last year, the JPY had been the dominate currency in this pair.  We were able to determine this based on the pairs reaction to the Equity markets.  When the DOW went up, the USD/JPY went up, when the DOW fell, the USD/JPY fell.  This was in large part due to the interest rate disparity between Japan and other countries.  It was very cheap to borrow Yen and invest in higher yielding assets whether it be another currency or another country's equity market. 

We have seen this dynamic shift in the last few weeks to the USD being the dominate currency.  Historically, a countries currency has gone the opposite direction of their stock market.  This is due to Supply and Demand.  The more of something available, the cheaper that asset becomes.  When the stock market rallies, money flows into the market, thus devalueing the currency and making it weaker. 

We have seen some pretty strong moves during the North American session and that may be where we shift our focus over the next couple of weeks.

The market tends to move in funny ways sometimes, be aware it will shift back to having a different session carry the strongest intra-day trends, but for right now, watch the North American session for some great opportunities.

Running System2v1 (available in web community under author DerekS) on GBP/USD, EUR/JPY, GBP/JPY, AUD/JPY, EUR/GBP, and AUD/USD...

The EUR/USD is also a candidate (I am already long and underwater)...

I modified the existing version to eliminate the repeat trade function and changed the exits to 100 x 100 x 50...

This attempt at a "systematic approach" is based on solid technicals but remains unproven / untested...

Please read the stragey description and the "Using Moving Averages" document located in the web community, under "Training", "Training Documents"

Long Rules:

Short Rules:

Thanks,

Derek...

I'm looking for some pretty big pull backs...

I maybe asking for to much...

EUR/USD:

GBP/USD:

USD/JPY:

From Blake's Forex Wrap:

"EUR/USD is now going into a consolidation phase that most likely will lead to a breakout in the next few days. More than likely to coincide with Thursday’s rate decision and press conference. For tonight, I am looking at possibly going long at the base of the channel around 1.4050. And the upper end is 1.4250."

Automating the idea:

From Blake's Forex Wrap:

"The GBP/USD tested 1.65, and we are not too far off the number. I would expect that this level is tested (and possibly broken) this evening. With the rally today, I would expect the GBP to outperform this evening. Support should hold at 1.6350."

Automating the idea:

From Blake's Forex Wrap:

"The USD/JPY did quite an about face today, and I think this may persist through the evening. If 97.25 is broken, 98.00 is right around the corner. Support will be at 95.50 this evening."

Automating the idea:

Thanks,

Derek Siek... (dsiek@wizetrade.com)