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.

Peter Bain Forex Trading Commentary: Thursday February 9, 2006

Forexmentor.com Price Action

For the second day in a row, we have seen three strategic times as being pivotal swing points - yesterday (Wed., Feb.8/06) at 8:30 am ET (news time), ~noon ET (London close),and ~8 pm ET (Tokyo open). Stuff happens at these times, and others, more often than not. It's a wise idea to employ either of the 'Kraai' or MMTS systems to trade the after-math of news that comes out at 8:30 am ET. The MMTS system you will find in the members' library at Forexmentor.com, and the 'Kraai' system is discussed extensively in the am review (general section) during the week of Feb. 6/06. The other way to trade the news is, if you are in a trade prior to news time, using a Steve Nison price projection (docmented by Rick Kraai in the library), that is unfolding nicely, you may be well advised to hang in through the news hour, with the possible exception of the first Friday of each month - when the NFP (non-farm payroll) report comes out.

See today's chart at:http://www.forexmentor.com/campaign/feb0906.html

See sample of yesterday's AM Review: http://www.forexmentor.com/sampler/feb806.html

Forexmentor.com News:

There is a drive to cash over concerns raised by Google's slide and lower sales forecasts for home builders. Lower gold and oil prices are having a negative impact on Canadian stocks. That said, geopolitical issues aren't going away any time soon, and so expect upward pressure on gold prices.Commodities had the biggest drop in seven months Tuesday onthe heels of falling oil prices, thus cooling fears of inflation. The outlook for oil is bearish, while the fundamentals for the metals complex remain strong. Canada, being rich in commodities, sees its currency suffer whenever commodities experience weakness. The pullback in the loonie is seen as temporary, as Canada's economy is in full flight.

Peter Bain Forex Trading Commentary: Wednesday February 8, 2006

Forexmentor.com Price Action

This is the second day in a row that I have talked about something happening at the London close the day before. Yesterday, sharp at 11 am, we had a gigantic hammer form, with a low of 1942, which turned out to be the same level tested today at 7:45 am ET. If you're looking for turnaroundsituations, you will more often than not find them in and around session start/stop times. As another example, the reversal that occurred late morning on Tuesday ran out of steam at 7 pm ET, the start of the Tokyo session. You will also run into trading opps. that arise as a result of news coming out at 8:30 am ET. Using either of the 'Kraai' or 'MMTS' systemsmentioned in the am review from time to time will be most helpful in getting you in on the right side of your trade. You will also notice that, as reported by one of our members, price seems to be sensitive at the top of each hour - or so it would appear. Something to keep in mind.

See today's chart at:http://www.forexmentor.com/campaign/feb0806.html

Forexmentor.com News

Uncertainty over Iran is causing a flight from stocks to bonds in the U.S. Iran is the world's fourth-largest oil producer, and is intent on pursuing nuclear research, contrary to the U.N.'s better wishes. Gold may be one of the beneficiaries of such nervousness, as gold is seen as, not only a safe haven, but also a hedge against inflation. Interesting that Apple is planning to transition to Intel processors. This is giving some traders a bad case of heartburn, and hence we have been witnessing share price weakness.The S&P's TSX composite index closed above 12,000 for the very first time, largely due to the strength of commodities, and then fell back.