Peter Bain Forex Trading Commentary for Friday May 19, 2006

Forexmentor.com Forex Trading Price Action

Clearly, the euro is stalling out, as reflected at all chart levels. We had a topping-out process last evening ET,during the Asian session, on the 15 minute chart. Tom DeMark trendline analysis caught that action, anda subsequent Joe Cheung price projection offered up 35 pips. For those of you who missed the ensuingswoon in price, you could have entered the fray, using the Jeff Hughes technique of waiting for the 10 EMA topunch down through the 80 EMA (read, 40 SMA) on the 5 minute chart. When that finally happened, Stochastics (STO) on the hourly had already registered overbought.

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Peter Bain Forex Trading Commentary for Thursday May 18, 2006

Forexmentor.com Forex Trading Price Action

The euro is looking a little toppy, if you pay credence to the behavior of price and MACD on the daily chart, and the railway tracks on the weekly chart.

I say, 'watch out below!' That said, we did have a nice bit of a rally yesterday after the NY close, in the form of a 1-2-3 bottom. A price measurement saw price rising to the central pivot point today - which it did.

Price is now meeting resistance at the central pivot point and the 144 EMA on the 15 minute chart.

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Peter Bain Forex Trading Commentary for Wednesday May 17, 2006

Forexmentor.com Forex Trading Price Action

Switching to the euro today, the trend at all levels is clearly up. Today was no exception, what with the golden cross of the 89 and 144 EMAs last evening ET. That was followed by a dip going into the London open.

Remember the old adage, 'buy the dips in an uptrend?'

When trying to negotiate entry points in an uptrending market, the use of an oscillator like Stochastics (STO) is helpful - i.e., buy when STO goes oversold (at least below the waterline 50 level).

You can see that it is okay to buy above the central pivot point, when there is upward price momentum. Everybody is looking for a correction in the euro, and we will only know when that happens by paying particular attention to the technical indicators on the higher level charts.

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Peter Bain Forex Trading Commentary for Tuesday May 16, 2006

Forexmentor.com Forex Trading Price Action

Technically, the Swissy is still in a downtrend, according to the weekly and daily charts. That said, the 4 hour chart showed some strength last night, going into today's session. That was dissipated by MACD negative divergence well after the London open - facilitated by a spinning top at R1 (a resistance level).

A combination of a common sense trendline break and Joe Cheung price projection, coming into today's session, offered up a cool 50 pips, before the divergence kicked in at 6 am ET.

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