Trading Opportunities - This Weeks Outlook

We are using the free chart service futuresource.com and looking at the IMM contracts. We are also using a very simple support and resistance system, with stochastics and Bollinger bands as confirming indicator and target indicator respectively.

The Japanese Yen

Is doing exactly what we thought - resuming its downtrend against the dollar.

We are now at the middle of the Bollinger band and while we think it could re visit its lows - profit taking is in order.

It’s a fantastic profit two full points with low risk so we would bank partial profits.

The British Pound

We banked a great short profit and now have a great long profit.

Again, first resistance is the middle Bollinger band so we see this is first resistance and will take trade in and bank profit.

While we could get more profit we have achieved our aim.

The bigger picture

The dollar suffered in the short term from the falls in the S & P But prices have steadied and so tohas the dollar.

The dollar holds a massive interest rate differential over the Yen and its hard to see the yen breaking up in the current environment. Sharp rallies remain selling opportunities and that’s exactly what we took advantage of last week.

The B Pound is in a range against the dollar and it’s a question of buying and selling the range until a breakout occurs.

When the breakout comes (either way) we expect a big trend top develop.

The Euro

We have not attempted to trade the Euro, but this generally looks bullish and higher profits look set to unfold.

The middle Bollinger band has given way and stochastic momentum is up.

Trade the range until a breakout occurs.

Trading the range either up or down using stochastic momentum is highly effective as we have proved and you normally can spot a good couple of trades each week.

Catching The Big Profits

The trades we have looked at above are all within the range or the trend and some good profits have been taken the real profit though will come from breakouts.

In the next article in trading opportunities we will look at some currencies that ignored by traders but offer great risk reward and act as a diversification from the majors.

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