January 11, 2012 Forex Signals

US Stocks Fell, Commodities lost ground as the S&P 500 slipped 0.1 percent in overnight trade. Starting in the US, in its Beige Book Business Survey released overnight US Federal Reserve Officials said that the US remained limited given a stagnant housing market and a sluggish Labour Sector. Officials labelled the growth of the US Economy as “moderate and modest” and despite unemployment dropping to 8.5 percent in December down from 9.4 percent a year earlier most industries remained reluctant to hire.

Punctuating the optimism from earlier in the week the Greenback appreciated against the Japanese Yen opening stronger this morning at a rate of 76.856. Continuing the ordinary sentiment hanging over markets overnight, in news flows out of Europe Final GDP for the 17-Nation Area also disappointed, with the reading of 0.1 percent well below expectation. In addition to the weak reading further ground was lost following a statement out of Germany’s Federal Statistics Office stating that Europe’s largest economy probably shrank in the final quarter of 2011. With Ratings Agency Fitch also warning of further downgrades, the EURO not surprisingly lost ground against the Greenback yesterday and after trading between a 24 hour range of (1.2661 – 1.2789) opens noticeably weaker this morning at a rate of 1.2695, the lowest level seen in close to 15 months.

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:  The news sentiment based drop pushed the price down to new support levels. We are seeing short term indications of a rebound back up, but given the current market sentiment and potential of a continued drop, we think the risk is too high to enter a long trade tonight.

GBPUSD:  Unfortunately, the news driven market sentiment pushed the price down hard and fast, taking out our position as it hit our stop loss. The price moved into new lows since October of last year, and current indications are that it may continue to move down unless the market shifts back up again. We see the price approaching long term support so it may bounce back up. If that is the case, there is very little room for downward movement to risk a short trade tonight. We also can’t enter a long position as the current indications are for a potential move down.

USDJPY: The pair did push up, but then dropped by the end of the day, closing only slightly above its open. This lack of control by either the bears or the bulls indicates complete indecisiveness in trading direction. While the price did rise slightly, there are no indications of a potentially good move in the near term. No trade tonight.

USDCAD:  Not much has changed from yesterday as the trading was relatively flat with some spikes up and down. The spinning top created yesterday was slightly bullish, but since the price is currently right about at the pairs moving average little can be determined as far as a potential trade is concerned. We see a narrowing triangle trend where the trading swings appear to be getting smaller and smaller. There is no good trade for tonight.

AUDUSD:  After a bit of movement, the price closed just about where it opened showing no trending strength at all. We have few indications of a good trade potential so are holding off for a better opportunity.

USDCHF:  Still bouncing around in a sideways channel, end of day or position trading is at a strong disadvantage here. We are holding off for a better opportunity.

More Like This:

1. January 2, 2012 Forex Signals
2. January 8, 2012 Forex Signals
3. January 10, 2012 Forex Signals
4. January 1, 2012 Forex Signals
5. January 3, 2012 Forex Signals