General Information


3
Sep 12

Our Updated FOREX Trading Signals Service

We have updated our Daily FX NOW Trading Signal Service. Click on the link below for a comprehensions guide to our FOREX Trading Signal Service.

FX Now Trading Signal Service

FX NOW Daily Trading Signal Service Summary:

Our signal strategy measures currency rate volatility on the hourly time frame and aims to capture the broader trending moves that take place over 24-48 hour intervals. Attached to this email is a comprehensive guide to our FX NOW Signal Service.

  • EUR, GBP, CHF, AUD, CAD, EURJPY and the S&P 500 analyzed every day.
  • Trade Ideas offer actionable levels relevant for the next 24 hours.
  • “Today’s Picks” section highlights currency pairs that offer the most attractive trading ideas from the entire analysis.
  • Brief analyst comments offer an experienced view of overall trading conditions for every currency pair.
  • Specific entries, stops, target zones and risk/reward ratios generated for every currency pair.

The analysis emailed each day offers a clear risk-defined trend following approach that requires almost no input from the trader.  If you know how to place orders,  then you will be able to follow the ideas presented without question.

FX Now is ideal for traders of all experience levels who are looking for actionable trading ideas without having to sit in front of the computer for hours and waiting for one.


24
Jun 12

FX Weekly Insight including Price & Time Projections

Hello Trader

The Weekly Insight will be suspended for July and August and return in September. There will be one more issue before the break.

Check out our daily analysis of 6 major currency pairs, FX NOW at http://cashmechanics.com/fx-now.html

Weekly Insight  (analysis by Al “Gunny” Davis) 

EUR/USD:  Week of 6/24/2012

REVIEW

At the time of last week’s analysis the EUR/USD was trading at 1. 26361.  Our bias called for a rally of the EURUSD towards the upper range of the 1.26630 – 1.27830 bullish target zone and potentially up to the target zone of 1.28577 – 1.28754 (Mnr Tgt Zn).  We anticipated a close & retest that stayed above these zones would open the way up towards the bullish target zone of 1.29370 – 1.29770.  Our exit strategy called for a decline of the EURUSD towards the bearish target zones of 1.24770 – 1.24170 and potentially down to the target zone of 1.23170 – 1.22817.  We anticipated a close & retest that stayed below these zones would open the way down towards the bearish target zone of 1.21929 – 1.21307 (MER 3). 

Our “Timing Projections” were 6/16/12 – 6/17/12 and 6/21/12 – 6/22/12.  On 6/18/12 the EUR/USD rallied to a high of 1.27468 and on 6/22/12 it declined to a low of 1.25191.  The EUR/USD closed the week at 1.25677.  There’s a factor of +/- 2 when using timing projections.

ANALYSIS

Our long-term price analysis still remains bullish as the waves appear to be unfolding in a larger degree corrective pattern (pennant, wedge or triangle).  A decline below 1.18758 would signal the EURUSD is trading within a flag or descending channel and not within a pennant, wedge or triangle.  We’re anticipating a long-term rally that will trade towards and potentially beyond the bullish target zone of 1.57770 – 1.60380.  Our bias calls for a decline of the EURUSD towards the bearish target zones of 1.24770 – 1.24170 and potentially 1.23170 – 1.22817.  We will then anticipate a retest of the “FCQ” & “FF” trendlines.  A close & retest that stays below these bearish target zones will open the way down towards the target zones of 1.22370 – 1.21170 and potentially 1.21929 – 1.21307 (MER 3).  Our exit strategy calls for the EURUSD to retest the “FCQ” & “FF” trendlines.  A close & retest that stays above these trendlines will open the way up towards the target zone of 1.28577 – 1.28754 (Mnr Tgt Zn) and potentially 1.29370 – 1.29770.

Our long & short-term momentum indicators are mixed and signal a potential sideways trading range is a possibility over the next few trading days.  The decline off of the 1.60380 high appears to be unfolding in a pennant, wedge or triangle shaped pattern.  These patterns are continuation patterns and support our long term bullish outlook.  A failure of this pattern would lead to much larger declines.  The pattern could also be forming a descending channel or bullish flag pattern.

TIMING

Our long term timing projections allow us to anticipate the potential of a significant swing point occurring between 6/24/12 & 6/28/12.  Our short term timing projections allow us to anticipate a minor swing point may occur between 6/27/12 – 6/28/12 and also between 7/2/12 – 7/3/12. 

Our timing projections have a factor of +/- 2 and allow us to anticipate potential turning points in the marketplace.

Come join us during our daily chat room sessions as well as our weekly webinar series and observe our methodologies and strategies that allow us to make these types of accurate projections. Register at http://www.cashmechanics.com/chat-room-pay.html and receive access and the Chat Room discussion schedule.

Follow us on Twitter and Facebook

Best regards,

Pat Arcadipane
Chief Executive Manager
Cashmechanics.com

 

©Copyright 2010-2012 Cashmechanics.com, LLC, 80th Street, Brooklyn, NY 11209. All rights reserved. All product names contained herein are the trademarks of their respective holders.

RISK WARNING: Off-exchange foreign currency trading on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.  Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with off-exchange foreign currency trading and seek advice from an independent financial advisor if you have any doubts.

 


16
Mar 12

EURUSD: Short Position Still in Play

Reposted from DailyFX.com

Strategy: Short at 1.2993 (avg), Targeting 1.2864

Floating Profit / Loss: -96 pips

We initially sold EURUSD at 1.3121 and added to the position at 1.3026 as the pair completed a Head and Shoulders topping chart formation. A stop-loss will be triggered on a daily close above 1.3378. The near-term downward trajectory remains intact for now, defined by a falling trend line set from the February 29 high and reinforced by a confluence of Fibonacci levels in the 1.3103-1.3156 area. I will continue holding short, initially targeting 1.2864. A stop-loss will be activated on a daily close above 1.3378.

EURUSD_Short_Position_Still_in_Play_body_eurusd.png, EURUSD: Short Position Still in Play

RISK WARNING: Off-exchange foreign currency trading on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you.  Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and, therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with off-exchange foreign currency trading and seek advice from an independent financial advisor if you have any doubts.


15
Feb 12

EUR/USD: Bullish long term; Minor swing points still expected in the next two weeks


Hello Trader
Attend free Wednesday web conferences at 8 pm Eastern Time, 0100 GMT. The next web conference is February 15- Real-time forex analysis using Elliott Wave Theory with Gunny Davis.   Register at https://cashmechanics.omnovia.com/registration
Also, check out our daily analysis of 6 major currency pairs, FX NOW at http://cashmechanics.com/fx-now.html
Weekly Insight
(analysis by Al “Gunny” Davis) 
EUR/USD: Bullish long term; Minor swing points still expected in the next two weeks
REVIEW

At the time of last week’s analysis the EUR/USD was trading at 1.31561.  Our bias called for the EUR/USD to rally towards our bullish target zones of 1.33070 – 1.33470 and potentially 1.34370 – 1.34890.  Our exit strategy called for the EUR/USD to decline towards our bearish target zones of 1.29770 – 1.29370 and potentially 1.27830 – 1.26630.  In our timing analysis we anticipated a minor swing point would occur between 2/4/12 – 2/7/12 and also between 2/13/12 – 2/15/12.

On 2/6/12 the EUR/USD declined to a low of 1.30273 and on 2/9/12 it rallied to a high of 1.33210.  The EUR/USD closed the week at 1.31957.

ANALYSIS

Our long term price analysis still remains bullish as the waves appear to be unfolding in a larger degree corrective pattern (pennant, wedge or triangle).  We’re anticipating a long term rally that will trade towards and potentially beyond the bullish target zone of 1.57770 – 1.60380.  Our bias calls for a short term rally in the EUR/USD towards our bullish target zones of 1.33070 – 1.33470, 1.34370 – 1.34890 and potentially 1.36090 – 1.36930.  We will then be anticipating a decline towards our bearish target zones of 1.29770 – 1.29370 and potentially 1.27830 – 1.26630.  Our exit strategy calls for the EUR/USD to rally beyond our bullish target zone of 1.36090 – 1.36930 and towards our bullish target zone of 1.38545 – 1.45575 (this zone is a bullish target zone from our 2012 Euro Outlook).

The long term momentum indicators are bullish.  The decline off of the 1.51437 high appears to be unfolding in a pennant, wedge or triangle shaped pattern.  It also appears to be a smaller pennant, wedge or triangle shaped pattern within a larger degree pennant, wedge or triangle shaped pattern from the decline at 1. 60380.  Pennants, wedges and triangles are continuation patterns and support our long term bullish outlook.  A failure of this pattern would lead to much larger declines.

TIMING

Our long term timing projections allow us to anticipate the potential of a significant swing point occurring between 6/24/12 & 6/28/12 with our midterm timing projections at 3/4/12 & 3/18/12.  Our short term timing projections allow us to anticipate a minor swing point may occur between 2/13/12 – 2/15/12 and also between 2/17/12 – 2/20/12.

Our timing projections allow us to anticipate potential turning points in the marketplace. With our timing projections there’s a factor of +/- 2.

Come join us during our daily chat room sessions as well as our weekly webinar series and observe the methodologies and strategies we use that allow us to make these types of projections. Now FREE all the time. Register at http://www.cashmechanics.com/chat-room-pay.html and receive access and the Chat Room discussion schedule.


2
Feb 12

Trading Forex and Earning Cash

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31
Jan 12

EUR/USD: Short term chop zone

Hello Trader
Attend free Wednesday web conferences at 8 pm Eastern Time, 0100 GMT. Next web conference is February 1- 2012 EURO & GOLD Outlook: Real-time analysis with Gunny Davis.   Register at https://cashmechanics.omnovia.com/registration
Also, check out our daily analysis of 6 major currency pairs, FX NOW at http://cashmechanics.com/fx-now.html
Weekly Insight
(analysis by Al “Gunny” Davis) 
EUR/USD: Short term chop zone
REVIEW

At the time of last week’s analysis the EUR/USD was trading at 1.29298.  Our bias called for the EUR/USD to decline & retest the bearish target zones of 1.28490 – 1.28070 and potentially 1.27830 – 1.26630.  We were then looking for the EUR/USD to continue its rally up to the bullish target zone of 1.30470 – 1.30770.  We anticipated a close & retest that stayed above 1.30470 – 1.30770 would then open the way up to the bullish target zone of 1.31363 – 1.32366.  Our exit strategy called for a larger decline towards our bearish target zones of 1.25070 – 1.23897 and 1.23170 – 1.22817.    The EUR/USD declined to a low of 1.28532 on 1/22/12 and then rallied to a high of 1.32290 on 1/27/12.  The EUR/USD closed the week at 1.32189.

In our timing analysis we anticipated a minor swing point would occur between 1/24/12 – 1/26/12 and also between 1/31/12 – 2/1/12.

ANALYSIS

Our long term price analysis still remains bullish as the waves appear to be unfolding in a larger degree 5-wave corrective pattern.   We’re anticipating a long term rally that will trade towards and potentially beyond the bullish target zone of 1.57770 – 1.60380.  Our bias calls for the EUR/USD to rally up to the bullish target zones of 1.33070 – 1.33470 and potentially 1.34370 – 1.34890.  We will then look for the EUR/USD to decline down to the target zone of 1.30770 – 1.30470 and potentially down to 1.2977 – 1.2937.   Our exit strategy calls for the EUR/USD to continue its rally towards our bullish target zones of 1.36090 – 1.36930.

Our long term momentum indicators are mixed and signal a potential sideways choppy market or a sharp decline in the EUR/USD over the next few trading days.  The lower timeframe’s momentum indicators are overbought and we’re looking for clues and signals that will indicate a decline in the EUR/USD has begun.

TIMING

Our long term timing projections allow us to anticipate a potential significant swing point may occur between 3/4/12 & 3/18/12.  Our short term timing projections allow us to anticipate a minor swing point may occur between 1/31/12 – 2/1/12 and also between 2/4/12 – 2/7/12.  Our timing projections allow us to anticipate potential turning points in the marketplace. With our timing projections there’s a factor of +/- 2.


17
Jan 12

EUR/USD: Short term bearish momentum

Weekly Insight
(analysis by Al “Gunny” Davis) 
EUR/USD: Short term bearish momentum
REVIEW

At the time of last week’s analysis the EUR/USD was trading at 1.27188.  Our bias called for the EUR/USD to trade within a choppy (sideways) market with a potential rally up to the bullish target zones of 1.31448 – 1.31721 & 1.32419 – 1.32711 and then a subsequent decline towards the bearish target zone of 1.27830 – 1.26630.  Our exit strategy called for a rally that would trade up to the target zone of 1.34568 – 1.34683.  The EUR/USD declined to a low of 1.26241 on 1/13/12 and closed the week at 1.26754.  In our timing analysis we were looking for a turning point between 1/10/12 – 1/11/12.

 

ANALYSIS

Our long term price analysis still remains bullish as the waves appear to be unfolding in a larger degree 5-wave corrective pattern.   We’re anticipating a long term rally that will trade towards and potentially beyond the target zone of 1.57770 – 1.60380.  The current decline of the EUR/USD is supported by the bearish momentum on the lower timeframes.  Our bias calls for the EUR/USD to continue its decline down to the target zone of 1.25070 – 1.23897.  There’s a tremendous amount of confluence at the target zone of 1.24770 – 1.24170 and I’ll be observing how the EUR/USD reacts there.  Our exit strategy calls for a rally that will retest the upper boundary of target zone 1.26630 – 1.27830.  A close & retest that stays above this zone will open the way for a rally towards the target zones of 1.29370 – 1.29770 and 1.31363 – 1.32366.

Our long term momentum indicators signal the EUR/USD’s bearish momentum may be coming to an end.  The lower timeframe’s momentum indicators are still bearish and I’ll be using them to signal the start of a rally that could last for several weeks.

TIMING

Our long term timing projections allow us to anticipate a potential significant swing point may occur between 3/4/12 & 3/18/12.  Our short term timing projections allow us to anticipate a minor swing point may occur between 1/16/12 – 1/19/12 and also between 1/24/12 – 1/26/12.  Our timing projections allow us to anticipate potential turning points in the marketplace. With our timing projections there’s a factor of +/- 2.

Come join us during our daily chat room sessions as well as our weekly webinar series and observe the methodologies and strategies we use that allow us to make these types of projections. Now FREE all the time. Register at http://www.cashmechanics.com/chat-room-pay.html and receive access and the Chat Room discussion schedule.

Follow us on Twitter and Facebook
Best regards, 

Pat Arcadipane 
Chief Executive Manager
Cashmechanics.com 


12
Jan 12

Euro May Rally Further Against US Dollar

ssi_eur-usd_body_Picture_5.png, Euro May Rally Further Against US Dollar

EURUSD – Forex trading crowds turned aggressively net-long the Euro/US Dollar when it traded below $1.3000 and gave signal that the pair could continue its declines. Yet a more recent moderation in sentiment suggests that the pace of declines may slow. In fact, a bigger shift in sentiment would favor an important Euro reversal higher.

The ratio of long to short positions in the EURUSD stands at 1.06 as approximately 51 percent of traders are long—quite near neutral. This is mostly unchanged from yesterday, but it is significant to note that long positions fell 24.4 percent since last week while shorts have climbed 28.8 percent in the same stretch.

The considerable shift towards crowd selling warns that the Euro could soon turn higher. The risk of reversal can likewise be seen on potential sentiment extremes in Euro futures and options positioning.


11
Jan 12

British Pound and Euro Pace Losses Ahead of Central Bank Meetings

Fundamental Headlines

• CFTC May Vote on Derivative Rules for Munis – Bloomberg

• Regulators May Expand Definition of ‘Too-Big-to-Fail’ – Bloomberg

• ECB Must do More to Prevent Euro Collapse: Fitch – Reuters

• German Economy Contracted at End of 2011 – WSJ

• Monti, Merkel Talks Focus on Growth – WSJ

European Session Summary

The rally by higher yielding currencies and risk-correlated assets that has taken place since European pre-market hours on Monday hit a snag on Wednesday, after a myriad of disappointing data from across Europe suggested 2012 would be a difficult year, regardless of the Euro-zone crisis. Data showed that the United Kingdom’s trade deficit rose more than expected, while shop-price inflation slowed to its lowest rate in sixteen months. The British economy is stagflating, which has stoked speculation that the Bank of England may be forced to inject more stimulus, dragging down the Pound.

Moving to the continent itself, Germany’s statistics office announced that growth had contracted by almost 0.3 percent, ending a two year growth streak. A second consecutive quarter of contraction would pull the German economy into a recession, suggesting that if Europe’s strongest economy has trouble staying afloat, then the periphery will almost certainly post negative growth figures in the quarters ahead.

GBP/USD 5-min Chart: January 11, 2012

British_Pound_and_Euro_Pace_Losses_Ahead_of_Central_Bank_Meetings_body_Picture_1.png, British Pound and Euro Pace Losses Ahead of Central Bank Meetings

Charts created using Strategy Trader– Prepared by Christopher Vecchio

Overall, the British Pound and the Euro led declines among the majors on Wednesday, with the U.S. Dollar and the Japanese Yen as the top performers, respectively. The commodity currencies remained firmer than their European counterparts, as both energy (oil) and precious metals (gold) have ticked higher in recent days. While part of this can be attributed to Iranian saber rattling (oil), the European Central Bank’s increasingly dovish monetary policy stance has boosted market liquidity, aiding the carry trade and risk-appetite.

Tomorrow’s rate decisions are particularly important, considering both the BOE and ECB are rumored to be considering expanding their stimulus packages, in the form of lower rates or further liquidity injections, or both. While lower rates would help support risk taking by market participants, both the British Pound and the Euro would face downside pressure against the U.S. Dollar, as the interest rate differential between those currencies and the Greenback would slide further in favor of the world’s reserve currency.

24-Hour Price Action

British_Pound_and_Euro_Pace_Losses_Ahead_of_Central_Bank_Meetings_body_Picture_10.png, British Pound and Euro Pace Losses Ahead of Central Bank MeetingsBritish_Pound_and_Euro_Pace_Losses_Ahead_of_Central_Bank_Meetings_body_Picture_4.png, British Pound and Euro Pace Losses Ahead of Central Bank Meetings

Key Levels: 14:00 GMT

British_Pound_and_Euro_Pace_Losses_Ahead_of_Central_Bank_Meetings_body_Picture_7.png, British Pound and Euro Pace Losses Ahead of Central Bank Meetings

Thus far, on Wednesday, the Dow Jones FXCM Dollar Index is higher, trading at 10007.19, at the time this report was written, after opening at 9966.30. The index has traded mostly higher, with the high at 10016.04 and the low at 9960.99.

— Written by Christopher Vecchio, Currency Analyst


10
Jan 12

USD Index Points To Further Strength, Sterling To Face Range-Bound Prices

DJ FXCM Dollar Index

Index Last High Low Daily Change (%) Daily Range (% of ATR)
DJ-FXCM Dollar Index 9961.94 9988.98 9947.01 -0.23 66.22%

USD_Index_Points_To_Further_Strength_Sterling_To_Face_Range-Bound_Prices_body_ScreenShot064.png, USD Index Points To Further Strength, Sterling To Face Range-Bound Prices

The Dow Jones-FXCM U.S. Dollar Index (Ticker: USDollar) remains 0.23 percent lower from the open after moving 66 percent of its average true range, and the greenback may weaken further over the next 24-hours of trading as price action remains confined in a downward trend channel. However, as the 30-minute relative strength index holds above oversold territory, the lack of momentum to push below 30 could set the stage for a short-term correction, and we may see the index work its way back towards the upper Bollinger Band around 9,973, which coincides with the bounds of the downward trending channel. As the recovery in the world’s largest economy gradually gathers pace, the Fed’s Beige Book may highlight an improved outlook for the region, and the report may prop up the greenback should we see the central bank talk down speculation for additional monetary support.

USD_Index_Points_To_Further_Strength_Sterling_To_Face_Range-Bound_Prices_body_ScreenShot065.png, USD Index Points To Further Strength, Sterling To Face Range-Bound Prices

The bearish RSI divergence on the daily chart continues to instill a mixed outlook for the USD, but it seems as though the index is finding near-term support around the 61.8 percent Fibonacci retracement around 9,947, which could pave the way for a higher high. In light of the recent developments coming out of the world’s largest economy, the more robust recovery may encourage the central bank to raise its fundamental assessment for the region, and the Beige Book may spark a bullish reaction in the reserve currency as it dampens the scope for another large-scale asset purchase program. In turn, the 61.8 percent Fib may ultimately hold up as new support, which could spark another run at the 78.6 Fib around 10,117. As the index appears to be stuck within an ascending triangle, it seems as though there’s a greater chance of seeing a major move to the upside, and the bullish sentiment underlining the USD should gather pace over the near-term as we expect the Federal Reserve to talk down expectations for QE3.

USD_Index_Points_To_Further_Strength_Sterling_To_Face_Range-Bound_Prices_body_ScreenShot066.png, USD Index Points To Further Strength, Sterling To Face Range-Bound Prices

All four components gained ground against the USD, led by a 0.87 percent advance in the Australian dollar, while the British Pound gained another 0.12 percent on Tuesday. Although the Bank of England is scheduled to convene later this week, the policy meeting may fail to product volatility in the exchange rate as the central bank is widely expected to keep the benchmark interest rate at 0.50 percent while maintaining its asset purchase program at GBP 275B. Should the BoE refrain from releasing a policy statement, market participants will certainly look forward to the meeting minutes due out on January 25, but the U.K. event risks on tap for later this week may weigh on the exchange rate as we’re expecting to see a slowdown in economic activity paired with easing price pressures. As the GBP/USD maintains the broad range from the end of December, we should see the pound-dollar trend sideways over the near-term, but the sterling remains at risk of facing additional headwinds in the days ahead as market participants expect to see the BoE expand monetary policy further in 2012.

— Written by David Song, Currency Analyst