Peter Bain Forex Trading Commentary Friday February 10, 2006
Forexmentor.com Price Action
We now have a demand (read, support) Tom DeMark trendline inplace on the daily chart for the euro. And, we have stochastics over-sold at that level, combined with a common sense 'up'trendline, providing support where price is now. Plus which, we have an ever-so-faint inverted head-and-shoulders pattern on the hourly. For the past three days, I have been 'preaching' the merits of paying attention to three critical times of theday - 8:30 am ET (news time), ~11 am ET (London close), and ~7 pm ET (Tokyo open). For the third day in a row, these times have offered up good trading opportunities. Today Friday, February 10/06), price halted in its tracks - just past the London open - after a swoon in price - and with the formation of a ~hammer - all happening at the M2 pivot level, on an M2/M4day. I forgot to mention that we have three spinning tops in a row on the daily chart. Obviously, traders have the brakes on, and the 1.1965 level (M2) has become a strategic support level for today's price action and beyond.
See today's chart at:http://www.forexmentor.com/campaign/feb1006.html
See sample of Thursday's AM Review: http://www.forexmentor.com/sampler/feb906.html
Forexmentor.com News
Demand for crude oil in the U.S. could possibly decline, ifthere is any truth in a U.S. Energy Department report indicating that gasoline inventories are higher than expected. In fact, U.S. motor fuel supplies surged to an 11-month high, according to that report.The Canadian dollar got a lift from steadying commodity prices and data showing that Canada's housing market is still red hot. This is in stark contrast to lower sales forecasts for home builders in the U.S. Rumors about bearish remarks made by Mr. Greenspan at a private function Tuesday were a negative for North American bond markets Wednesday. However, the real story behind the retreating bond market was the persistently strong U.S. economy.
We now have a demand (read, support) Tom DeMark trendline inplace on the daily chart for the euro. And, we have stochastics over-sold at that level, combined with a common sense 'up'trendline, providing support where price is now. Plus which, we have an ever-so-faint inverted head-and-shoulders pattern on the hourly. For the past three days, I have been 'preaching' the merits of paying attention to three critical times of theday - 8:30 am ET (news time), ~11 am ET (London close), and ~7 pm ET (Tokyo open). For the third day in a row, these times have offered up good trading opportunities. Today Friday, February 10/06), price halted in its tracks - just past the London open - after a swoon in price - and with the formation of a ~hammer - all happening at the M2 pivot level, on an M2/M4day. I forgot to mention that we have three spinning tops in a row on the daily chart. Obviously, traders have the brakes on, and the 1.1965 level (M2) has become a strategic support level for today's price action and beyond.
See today's chart at:http://www.forexmentor.com/campaign/feb1006.html
See sample of Thursday's AM Review: http://www.forexmentor.com/sampler/feb906.html
Forexmentor.com News
Demand for crude oil in the U.S. could possibly decline, ifthere is any truth in a U.S. Energy Department report indicating that gasoline inventories are higher than expected. In fact, U.S. motor fuel supplies surged to an 11-month high, according to that report.The Canadian dollar got a lift from steadying commodity prices and data showing that Canada's housing market is still red hot. This is in stark contrast to lower sales forecasts for home builders in the U.S. Rumors about bearish remarks made by Mr. Greenspan at a private function Tuesday were a negative for North American bond markets Wednesday. However, the real story behind the retreating bond market was the persistently strong U.S. economy.
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