January 10, 2012 Forex Signals

US Corporate Earnings Season kicked off with a bang overnight, with US aluminium giant Alcoa announcing a full-year profit more than double the profit of the previous year. Adding to the already positive mood throughout markets, the S&P 500 advanced 0.9 percent yesterday to its highest level seen in five months. As anticipated the Greenback lost ground against 15 of its 16 major peers, with the exception of the Japanese Yen in which it opens stronger against this morning at a rate of 76.8050.

In news out of China overnight fuelling bets that the Government will shortly undertake an easing stance towards Monetary and Fiscal in an attempt to spur growth, Trade Balance figures showed that import growth slowed to two-year low in December. With the market clearly benefitting from stronger US Fundamentals of late as well as a lack of focus on Europe, the EURO also advanced against its US Counterpart and after trading between a 24-hour range of (1.2742 -1.2817), opens slightly stronger this morning at a rate of 1.2789. Looking ahead this evening attention will likely turn to EURO-Zone GDP Figures with the final quarter of 2011 tipped to return a very modest growth figure of 0.2 percent.

Now, on to our open positions and new trades. Lets take a look at the specifics:

Open Orders

New Orders

All Pending type orders are only good for the day. Set the pending order to expire within 24 hours.

Use the Lot Size Calculator to determine lot size. In general, never risk more than 2-3% on a single trade, but that also depends on your own personal trading strategy and risk management.

EURUSD:  After the Piercing line from the previous day, the trading fell flat creating a Doji. This could mean a turn back to the down side as we mentioned yesterday. Given short and medium term indications, the price has no decisive direction to trade. No trades tonight.

GBPUSD:  The price did start to move up, but after the close of the NY session we have seen a small push back down. Our medium term indications are still showing upward potential, so this pullback may be short lived. Our open position is still limited on the downside so we are going to let it run and see if the price moves back up into the profit zone.

USDJPY: The spinning top yesterday was completely indecisive as to a potential new direction. We see indications that the price may move up, but only by a small amount, and just as likely to basically move sideways. No good trade indications tonight.

USDCAD:  We see a narrowing triangle trend where the trading swings appear to be getting smaller and smaller. The price did continue to drop but started to bounce near the end of the session. Over the past few hours we have seen a small move back up which may indicate the potential return to the apex. Either way, there is too much risk for a trade in either direction. Our indications are for a continued move down, but given the close support and potential for a return to the apex area, there is no good trade for tonight.

AUDUSD:  The Aussie moved up yesterday, but by the end of the session had fell back as the bears took control again. Over the past few hours the price has continue to fall slightly. Currently in the middle of the last downward swing, there is no good profit potential in a long nor short trade for tonight.

USDCHF:  The bearish engulfing signal didn’t quite confirm as the trading for yesterday was tight and flat. This could indicate either consolidation or a return to the upward direction. If it does move upward, we don’t see much potential gain as it returns to resistance levels and may bounce back down. On the other hand with the lack of strength in a downward continuation, we can’t place a short trade either. No trade tonight.

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