By Jerry Furst- Sr Analyst

at Investors Education Network.com

Currencies are Breaking Out

As 2009 officially gets underway with the 1st full week of trading - the currencies are displaying “unusual” correlations - or the lack there of. For example:

UK Pound Rallies vs The Dollar

While the Euro Breaks Down Against the US Dollar

While the US Dollar Appreciated against the Swiss

The USD-CAD Dropped to a new Support Level

So the above shows that the US Dollar is  by no means moving in the same direction. The current variations of correlations are not acting in traditional ways - this suggests to me that more volatility is likely on the way.  

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Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

 

 

 

By Jerry Furst- Sr Analyst

at Investors Education Network.com

 

Currencies and Commodities Wild Week >This past week has seen Oil drop below $34, and although Gold made some moves upward towards the $900 mark after the historic federal reserve announcement on Tuesday that they will use all means necessary to get the economy back on track -Gold plunged back to the $830 range at the end of the week.   

 

Euro Dollar Give and Take

EUR-USD 4 Hour Chart (click to Enlarge)

In one months time the Euro ran up approx 2300 pips and on Friday gave back over 800! This after the Euro fell from the 1.4800 range from September 22 to make lows around 1.2300 back on October 27 - These are amazing one month moves!

Monthly Charts Show the Picture

 

Pound Gets Pounded - Falling Hard  

Above: EUR-GBP Monthly (Click to Enlarge) : Euro - Pound Screaming Towards Parity!

Canadian Loonie Analysis Trend Continues 

     

USD-CAD 30 Min Charts (click to enlarge) The Down Trend Channel continues - Charts from Dec 15, 16, and 19th show the progression

 

 

 

 

 

 

 

 

 

 

By Jerry Furst- Sr Analyst “1st on Forex”

at Investors Education Network.com

Bens Last Hurrah?

After Tuesday’s meeting - The next scheduled FOMC meeting is January 28, will there be a new Fed Chairman at the helm, or will Bernanke be held over? Will there be any more rate cuts available at that time? There are expectations that rates could be lowered to 0.25% - making the US rates even lower than Japan.

The Dollar Continues to Give Up Ground

USD-CAD 30 Min Chart - (Click To Enlarge)

Shows continuing downslide after Triangle Break last week.

 

AUD-USD 30 Minute Chart (Click to Enlarge)

Continuing Up Trend Channel

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Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

 

By Jerry Furst- Sr Analyst “1st on Forex”

at Investors Education Network.com

Chart Pattern Review - 48 Hours Later 

Two days ago I posted several charts showing some nice chart patterns - indicating to me a 

consolidation was ready to breakout and I labeled the post “Pause Before the Storm” 

Let’s look at the charts side by side now.

 USD-CAD 4 Hour Chart — 300 Pip Triangle Break Out (click to Enlarge)

 EUR-USD 30 Min Chart — Over 400 Pip Trend Channel Break (click to Enlarge)

USD-CHF 2 Hour Chart - Triangle Break - 200 Pips (click to Enlarge)

The above charts are great examples of waiting for High Probability setups on multiple pairs

all setting up at the same time.

 

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Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.

By Jerry Furst- Sr Analyst “1st on Forex”

at Investors Education Network.com

Dec 9, 2008 - Pause Before The Storm?

“Show and Tell” on Chart Patterns

Lot’s of Chart Patterns are Currently Forming on the Currencies - A brief discussion and then a look at some good examples of Triangle Patterns all setting up at the same time on different time frames.  

Furst -  let me give you my “two Ameros” on chart patterns. I consider them all to be “consolidation patterns” and have no bias that - for example,  an “ascending triangle”  is a “bullish pattern” - to me,  it could go in any direction. What I look for is the strength of a well formed pattern.

Is it well formed? 

If I can show people a chart and everyone quickly recognizes a Head and Shoulder Pattern, that’s a strong signal. If there is lot’s of debate - then it’s weak.  Chart Pattern recognition gets fun when you see a pattern forming at the right edge, but not yet completed. Aggressive traders can take a position that the pattern will first form - and then if it does, prepare for the potential price targets.

Don’t Get Bogged Down In Statistics

I debate the statistics some apply to chart patterns. For example: Maybe someone tested 1085 head and shoulder patterns and determined that  83.7% have a probability of completion in a certain circumstance.  So what! The 16.3% chance is just another “50-50″ coin flip if you are only looking at statistics. Well - let’s just say that I can disprove anything with statistics..

US Dollar - Canadian - Dec 9, 2008 - 4 Hour Chart

USD-CADVery Strong Triangle Pattern forming on the Dollar - Loonie. Note the multiple areas where the upward trend Channel has held - and the Resistance forming a classic Triple Top. (click to enlarge)

Euro - US Dollar Daily Chart - Dec 9, 2008

EUR-USD: No Shortage of Chart Patterns Here as we have a pretty good triangle pattern, with a consolidation zone inside. Note the Upward Trend Channel that will be brought into focus on a 30 Min chart Below

EUR-USD: 30 Minute Chart of EUR-USD Shows the Upward Trend Channel and Resistance Levels  (Click to enlarge)

US Dollar - Swiss

USD-CHF: 2 Hour Chart Dec 9, 2008 - Nice Triangle to complement the Euro-USD Pattern (Click to enlarge)

Aussie - US Dollar - Dec 9, 2008 4 Hour Chart

AUD-USD - 4 Hour Chart - Yet Another Triangle! - (Click to enlarge)

 

The Week Ahead - Calendar and Webinars

 Summarized Scheduled Economic Calendar - Click Here

***  Attend A Free Live Market Coverage and Technical Analysis Webinar ***

Click Here to Register for this weeks “1st on Forex” The Week Ahead Webinar  - Every Monday at 12 Noon EDT -

FOMC Live Webinar Tue December 16  - Click Here to Register

Jerry Furst  is an active trader, educator, and Founder of Investors Education Network (IEN), He is a Mentor and Trading Coach to Select Clients  Click Here for a Free Self Evaluation Survey.