Peter Bain Forex Trading Commentary for Friday June 9, 2006

Forexmentor.com Forex Trading Price Action

I see further downside potential for the euro, given the attitude of price (possible downtrend continuation pattern), and the behavior of MACD (neutralized back to the waterline). Plus which, price is bucking the overall trend (read down, if you pay attention to the angle of the 89 and 144 moving averages). Watch out below! Leg 1 down is already in place, and the consolidation phase is underway. Leg 2 down should replicate the same distance travelled by the first leg. There are four distinct price patterns, which are all described in detail in the members area at ForexMentor.com. Trading is nothing more than pattern recognition - patterns that repeat themselves over and over. If you can recognize them, ka-ching - money in the bank.

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Peter Bain Forex Trading Commentary for Thursday June 8, 2006

Forexmentor.com Forex Trading Price Action

For those of you who still think the euro is going to grow to the sky, I hate to disappoint you. The euro is now in a freefall - all presaged by the Big Dogs, with their negative COT sentiment. Sure, there are lots of fundamentals pointing to negativity surrounding the U.S. dollar, but the commercial traders know far more than you or I will ever know about why currencies move the way they do. They trade thousands of lots at a time worth millions of dollars. They can't afford to be wrong. That's why I trend towards being a true blue technician, in concert with commitments of traders data. Unless you're going to become an expert in reading the news, and understanding what it all means, I'd play follow-the-leader, and let the Top Guns point the way.

We have tons of information on trading strategies, tips and techniques in the library at ForexMentor.com to help you get your entry and exit points right.

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Peter Bain Forex Trading Commentary for Wednesday June 7, 2006

Forexmentor.com Forex Trading Price Action

There's no doubt now as to where the euro is going. I'll give you a clue . it's not up. The topping-out process has concluded in favor of the bears. But, that wasn't all that difficult to decide, given the attitude of the Big Dogs, and the behavior of the sister currencies - the pound and Swissy. Watch out below.That's not to say we won't have rallies along the way down, But, those instances are perfect times to go short. Sell the rallies in a downtrend.

Remember! That's not too difficult to engineer when you use an oscillator like Stochastics.

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Peter Bain Forex Trading Commentary for Tuesday June 6, 2006

Forexmentor.com Forex Trading Price Action

Well, a lot of people have been trying to convince me that the euro was going to grow to the sky, what with all those congestion theories flying around. What they failed to take into consideration was the fact that the pound and the Swissy were not confirming their 'best guesses.' And, they failed to acknowledge Big Dog sentiment - not only on the euro, but also the pound - where the commercials are going ever shorter with their positions.

A topping-out process has been observed at all levels - weekly, daily, 4 hour and 1 hour. Today, we had a good short trade opportunity just after the London open - a common sense trendline break, confirmed by MACD punching down through its trigger line - at M3 (the expected high for the day). The rise in price to that level was counter-trend. Sell the rallies in a downtrend. Where have we heard that before?

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