Peter Bain Forex Trading Commentary for Friday July 28, 2006

Forexmentor.com Forex Trading Price Action

Yesterday, I reported: We are in an overbought status, if you take a look at the divergence occurring on MACD on the 15 minute chart. I see this most recent rally as just that - another rally in a downtrend - and a setup for a good short. Well, folks, you were listening, right? After yesterday's am review, price swooned to 2660 - a drop of 110 pips. So much for the dumb money and their bids. And, here they go again today, after the news came out - bidding the euro up again. So, what do we do? Right! Get ready to go short again. Thank goodness for the dumb money. At least they're consistent - wrong again. You'd think they'd get tired of playing their games - always on the wrong side of the trade. Arggghhhhh!

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Peter Bain Forex Trading Commentary for Thursday July 27, 2006

Forexmentor.com Forex Trading Price Action

The Long Good Bye continued: The long dumb money sure are giving me a bad case of heartburn. They keep putting a bid on the euro, just when I think its demise will get underway.

The 2700 level was the resistance level I was keeping an eye on, and price has certainly gone beyond that point - but not convincingly. We are in an overbought status, if you take a look at the divergence occurring on MACD on the 15 minute chart. I see this most recent rally as just that - another rally in a downtrend - and a setup for a good short. The bulls will eventually give up, when they finally run out of money.

Patience folks! I know this is trying stuff, but nobody said it was easy. If it were, the world would be paved in gold, and we wouldn't want that now would we?

For more on what to look for when you are trading currencies, please check out the members area at www.forexmentor.com.

See today's chart at: http://www.forexmentor.com/campaign/july2706.html

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Peter Bain Forex Trading Commentary for Wednesday July 26, 2006

Forexmentor.com Forex Trading Price Action

The long good bye: Where have we seen this pattern before? Recognize it? It's called a downtrend continuation pattern supported, in this case, by the 200 EMA trending down on the 15 minute chart. I fully expect that we could see some upward pressure on price, before leg two kicks in.

MACD on the 4 hour supports this notion, with good angle and separation below the water line. The higher level charts (weekly and daily) are also sympathetic to this premise. MACD has already neutralized back up to the waterline on the 15 minute.

For more on what all this tecnobabble means, you will find the details in the members area at www.forexmentor.com.

See today's chart at: http://www.forexmentor.com/campaign/july2606.html

See latest sample AM Review at: http://www.forexmentor.com/sampler/

Peter Bain Forex Trading Commentary for Tuesday July 25, 2006

Forexmentor.com Forex Trading Price Action

The 2675 level on the daily chart for the euro held, as I said it would last week, in the form of railway tracks (or tweezers).

That was a good rally to sell in this downtrend, as have all other rallies been since late June. The rally into today's London open was just that - another rally, fuelled by the long dumb money. So much for the news reaction to Bernanke's musings on interest rates. Just more noise. Makes for good headlines.

Regarding COT (commitments of traders data), the Big Dogs are less short, as at last Friday's release, and the dumb money are less long. All that means is that we should expect further price weakness, now that the dumb money are shifting gears. The sheep are being shorn,once again.

For more on the finer intricacies of trading currenies, consult the members area at www.forexmentor.com.

See today's chart at: http://www.forexmentor.com/campaign/july2506.html

See latest sample AM Review at: http://www.forexmentor.com/sampler/