Peter Bain Forex Trading Commentary for Friday September 22, 2006

Forexmentor.com Forex Trading Price Action

Today, it's off to see the pound. The higher level charts (weekly, daily) clearly show what appears to be a head and shoulders pattern, and price is now testing the right shoulder.

If it holds, price has nowhere to go but down - what with the Big Dogs shorter than longer, with respect to their sentiment (COT).

Further, MACD has turned down on the hourly chart, and there Is evidence of MACD divergence on the 15 minute. Methinks the pound is running out of gas. We're either going to have an explosive rally up, up and away above and beyond the right shoulder, or price is going to tank. Should be interesting, to say the least.

For more on how to pick tops and bottoms, please see what we have in store for you in the members area at www.forexmentor.com.

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Peter Bain Forex Trading Commentary for Thursday September 21, 2006

Forexmentor.com Forex Trading Price Action

And now on to the Aussie folks. Last night, price was clearly above a down-trending 200 EMA on the hourly chart - i.e., going the wrong way - and MACD wasturning turtle on the 15 min. It was no big surprise to see negative divergence on MACD to price occurring on the 15 min. shortly after midnight ET. Translation:price had nowhere to go but down - through the end of the Asian session, and on into the London session. A Joe Cheung price projection just before midnightforesaw the eventual swoon in price down to the 7540 level - and there it went - just like magic folks.

For more finer details on how to perform trendline analysis, price projections, ect. check out the members area at www.forexmentor.com.

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Peter Bain Forex Trading Commentary for Wednesday September 20, 2006

Forexmentor.com Forex Trading Price Action

Today, we are focusing on the Canadian dollar, fondly called the loonie by some enthusiasts (of which I am not one). They could have done better when they picked that name. But, what do you expect from politicians anyway? Every country has its share of them (the not so good ones, that is, eh).

Anyway, the weekly and daily charts are clearly displaying what looks to me like a 1-2-3 bottoming-out pattern. And, the 200 EMA on the hourly and 15 minute charts is clearly trending up. Up she goes.

So, guess what folks? Buy the xxxx in the xxxxxxx. Yes, you heard it right. Buy the dips in the uptrend. Wait for weakness, and then go for it.

The challenge for most of you will be the waiting game. Most of you are impatient, and want it all now. We can thank McDonald's for that culture. But, wait you must. Wait for ironclad set-ups, and a confluence of events to take you in. In other words, do what everybody else isn't. When they're selling, you should be buying - using good ole fashion TA (technical analayis). That's my sermon for the day.

For more preaching, go to the members area at http://www.forexmentor.com/. See you there folks, and at the bank. KaChing!

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Peter Bain Forex Trading Commentary for Tuesday September 19, 2006

Forexmentor.com Forex Trading Price Action

Back to the euro today folks. According to the latest COT stats. (commitments of traders report, as at last Friday), the hedge funds and the street money (read, dumb money) are now selling the euro. Of course, this move was set up by the Big Dogs (commercial traders) as far back as June. It can take upwards of three months for their sentiment to finally kick in. The euro has a ways down to go yet.

Narrowing the focus, last night, although MACD was bullish (albeit overbought), price was above the 200 EMA on the 1 hour chart, which was trending down. Another chance to sell a rally in a downtrending market. Where have I heard that before? Well, sure enough, we had negative divergene on MACD to price on the 15 minute chart coming into today's session, facilitating a nice drop in price. Any further rallies should be viewed with similar suspicion.

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