Peter Bain Forex Trading Commentary for Friday July 21, 2006

Forexmentor.com Forex Trading Price Action

The euro has been retracing to the 2682 level, which is a resistance area on the daily chart. It just happens to also be the expected high for today - M4. I am still of the firm belief that we are witnessing yet another rally in this overall downtrend for the euro. I'm not claiming to be any sort of genius. I am simply following the Big Dogswho, as at last Friday, were extremely net short that currency. Let's wait and see what their position looks like today, when the new numbers come out at 3:30 pm ET. We also want to pay attention to where they're at with the US dollar, especially now that Bernanke is sounding dovish all of a sudden. I wish he'd make up his mind one way or the other, and stick with it. Or, maybe he should just be quiet for a while. We'll talk more about COT (commitments of traders) next week. Should be fun.

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Peter Bain Forex Trading Commentary for Thursday July 20, 2006

Forexmentor.com Forex Trading Price Action

Okay, it's not time to panic just yet. All we're seeing is a news rally that started yesterday. The long dumb money are at it again. We could see 2700 before this run is over. Let's let them have their fun, while we get ready to pull the trigger on the short side, recognizing that this is just another opportunity to sell the rallies in the downtrend because, after all, that's what we're in, right? But, don't tell them. That's our little secret. The Big Dogs are short the euro - extremely so, and that's where we get our marching orders from. Isn't it amazing how the other side can get it so wrong so often? No wonder at age 65 95% of people are either dead broke or dead. That's life. For more on how to read your charts correctly, don't forget that we have a resource library waiting for you in the member's area at www.forexmentor.com.

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Peter Bain Forex Trading Commentary for Wednesday July 19th, 2006

Forexmentor.com Forex Trading Price Action

You were listening to me yesterday, right? I told you that, once MACD neutralized on the 15 minute chart for the euro, more price weakness would likely follow. And, it did. Anybody know where the B button is on the elevator - for basement, that is - or, should we say parking level? The Big Dogs are right again. They called this move down in price towards the end of June. A position trader's delight. And, all day traders have had to do is sharpen their STO tool (Stochastics), and sell the rallies, as the EUR/USD pair sank beneath the surface.

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Peter Bain Forex Trading Commentary for Tuesday July 18, 2006

Forexmentor.com Forex Trading Price Action

Do you have that sinking feeling? Well, the euro sure does. It has dropped like a stone to 2527. Who could have guessed? The Big Dogs have been warning us about this possibility since the earth cooled, or so it seems. With the 200, 144 and 89 EMAS pointing down on the 15 minute chart, and with what would appear to be a downtrend continuation pattern in place, we could experience further price weakness. However, the thing to watch out for is support at the 2500 level, as seen on the 1 hour or 4 hour. If that doesn't hold, then watch out below. The Big Dogs have gone even shorter with their positions since we last met last week. So, where is bottom? We will talk about that in the days to come. For more on picking tops and bottoms, join us in the members area of www.forexmentor.com.

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