Peter Bain Forex Trading Commentary for Thursday March 23, 2006
Forexmentor.com Forex Trading Price Action
Call me stubborn, but I am still of the opinion that the Swissy (USD/CHF pair) has a ways to go down yet, once it finishes its head fake (retracement) on the daily chart. Traders (those long enthusiasts) are reacting to Bernanke's recent remarks that further interest rate tightening in the U.S. may be required to cool inflation. Of course, this is all pure conjecture at this point, but that's what the markets are reacting to. Technically speaking, all I see happening is a 1/2 to 2/3 retracement. If you look at what's happening on the hourly chart for the pound, you will see a doulble bottom that just recently concluded. That tells me that the Swissy doesn't have much gas left in its tank. Today, we had a nice swing trade just after the London open - and not exactly at 3 am ET either. Nothing even happens in the forex at an exact time, except when the news comes out at 8:30 am ET. A subsequent price projection (a la Joe Cheung) saw price going up to ~3073, give or take, and that's pretty much where price ended its run. 3073, by the way, is a resistance level (M3 pivot), and price at that level is in a sell area - the area above the central PP having a sell bias.
See today's chart at: http://www.forexmentor.com/campaign/mar2306a.gif
See sample AM Review at: http://www.forexmentor.com/sampler/
Call me stubborn, but I am still of the opinion that the Swissy (USD/CHF pair) has a ways to go down yet, once it finishes its head fake (retracement) on the daily chart. Traders (those long enthusiasts) are reacting to Bernanke's recent remarks that further interest rate tightening in the U.S. may be required to cool inflation. Of course, this is all pure conjecture at this point, but that's what the markets are reacting to. Technically speaking, all I see happening is a 1/2 to 2/3 retracement. If you look at what's happening on the hourly chart for the pound, you will see a doulble bottom that just recently concluded. That tells me that the Swissy doesn't have much gas left in its tank. Today, we had a nice swing trade just after the London open - and not exactly at 3 am ET either. Nothing even happens in the forex at an exact time, except when the news comes out at 8:30 am ET. A subsequent price projection (a la Joe Cheung) saw price going up to ~3073, give or take, and that's pretty much where price ended its run. 3073, by the way, is a resistance level (M3 pivot), and price at that level is in a sell area - the area above the central PP having a sell bias.
See today's chart at: http://www.forexmentor.com/campaign/mar2306a.gif
See sample AM Review at: http://www.forexmentor.com/sampler/
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