Learn to Trade Forex

Markets advance, are they ready to go north?

Raul Lopez — Fri, 14 Nov 2008 04:05:22 +0000

No, I don’t think so.

Today I’ve got plenty of mails asking what my thoughts are about the rebound we saw today, most thought the market are ready to head north. But let me tell you something, when the markets (or economies) are in good shape, usually the indexes do small but constant increments, not as the one we saw today.

Lately we have seen many strong ups and downs and this only means one thing: uncertainty of investors of where the market should be heading.

Anyways, be careful with your trading decisions. These days we should take special attention on important levels, if the market breaks one important level, it should head for the next one, but done expect another break, take profits there, because bounces could be wild.

Good luck!

Somebody did trade this triangle?

Raul Lopez — Thu, 13 Nov 2008 00:35:37 +0000

It is well known that the Euro/dolar is in a downtrend since early August. This triangles tend to be continuation patterns, thus breaking in direction of the long term trend is what we should expect.

Luckily this one wasn’t the exception

¿Where should is the best place to set our take profit orders?

What I would do here is watch closely what happens around 1.2337 (previous low), I need to make sure it doesn’t create a double bottom, if I see the market retracing back at that level, the best thing to do is close that trade. But if we see a break out, then it could go further down, probably around 1.2000, its next psychological support level.

Cheers!

Euro update

Raul Lopez — Mon, 03 Nov 2008 23:18:11 +0000

As I pointed out in my last post, if the Euro broke the 1.2980 for the upside, it was likely to reach 1.3350… guess what, we missed our target for 50 pips, its highest point was 1.3297, anyway I hope you profit from that break out.

Now the conditions have changed a bit, it is trading below 1.2673 and entered the sell zone. So I will start looking for a short opportunity in the EURUSD targeting the bottom of the range 1.2360sh (blue rectangle). Be careful though, if the market trades again above 1.2673 all shorts must be closed and start looking for long opportunities.

Have a nice week!

Euro short term Outlook

Raul Lopez — Wed, 29 Oct 2008 23:14:58 +0000

Now that the FED has cut interest rates to 1%, and the market digested that information calmly, we are free to resume our trading (I was thinking, if the FED didn’t cut by half a point ‘as expected’, we were going to see how volatile the market could turn, but that didn’t happen so I’m going to stop writing about it :)).

Anyways, this is what I think the Euro could behave in the following days:

Euro analysis

If the market breaks 1.2980 for the upside, it is likely to continue its way up to 1.3350, but if it bounces back, a range is more likely.

Good luck!

Aussie daily Outlook

Raul Lopez — Tue, 28 Oct 2008 16:09:40 +0000

Today most pairs are expected to trade in a tight range, why expected? Because its how they have been trading in the last couple of days. After the sharp moves we saw earlier last week they need to take a rest!

So, for most of them we will be trying to play de range, buying near the bottom of the range or going short at the top of the range. And obviously, all take profit orders will be placed at the opposite extreme (nothing more).

Here is the expected range in the Aussie

Aussie analysis

Green lines are short term support and resistance lines. Blue lines are long term S&R levels.

Good luck to you all!

Hello Traders!

Raul Lopez — Sun, 19 Oct 2008 14:02:38 +0000

We thank you for your support, we are back and ready to post our regular forecasts and analysis. So stick to this blog, you will find interesting forecasts news and other stuff.

For those of you who havent noticed, we have a new homepage, hope you all liked as much as we did.

Anyway, we are back and ready…. so stay tunned

Cheers