November, 2011


22
Nov 11

Cash Mechanics Forex News Update: Dollar Loses Strength as US Economy Rises.

This week, the US Dollar has been losing its strength on the Forex Market. Although this may sound like bad news to those of us who are heavily invested in the US Dollar on Forex, it also brings slight news of a positive relief for the US economy. European stocks remain in uncertainty, but are slowly relieving the pressure surrounding the tense Eurozone market in the past couple of days.

In the United States, Jobless claims data is showing increasing signs of improvement, with the number of new claims down to 338,000. The housing market is also showing strength, and is breaking expectations due to the drop In home inventories. All of these factors are adding up, and are resulting in signs of risk appetite increasing on the Forex Market.

In the International Forex Market. The Japanese Yen has surpassed the US Dollar, and is gaining strength. The Euro is currently struggling, but is maintaining a relatively steadier course than last week. The pound is relatively docile currently resting at a fairly high rate, and the Canadian dollar is gaining ground against the US Dollar, soon to surpass it.

This news of the United States Dollar doing poorly on the Forex Market does, in fact, mean that the US Economy is headed for improvement. The rate and degree of improvement will depend on the next coming year, but it is currently showing positive signs, and that is already a hopeful chance.

In the next coming weeks, it will be important to monitor trends in the Eurozone, and be aware of the possibility that the Euro will once again, become unstable. If something of the sort will happen, the US Dollar will regain its strength on the Forex Market.
For More information on Forex Tips, Trading Advice, Technical Analysis, and Trading Education visit www.Cashmechanics.com. Sign up to receive Cash Back on your Forex Trades. Good luck in your trading and watch out for more news and alerts.


15
Nov 11

EUR/USD: Look for Swing Point

EU/USD Swing

REVIEW
At the time of last week’s analysis the EUR/USD was trading at 1.37898. Our long term price analysis was bullish. The lower timeframe momentum indicators were bearish and we anticipated a short term decline of the EUR/USD over the next few trading days that could potentially trade in a sideways corrective pattern (range). Our bias called for a minor rally of the EUR/USD that would trade above 1.38670; our exit strategy was predicated on the lower timeframe indicators which were bearish and we anticipated that a if the EUR/USD did not trade above 1.38670, and closed below 1.35077, it would then decline down to the minor bearish target zone of 1.34683 – 1.34568. The EUR/USD rallied to a high of 1.38580 and then subsequently declined to a low of 1.34837. In our timing analysis we were anticipating a significant swing point on the EUR/USD between 11/4/11 – 11/7/11 and also between 11/12/11 – 11/14/11 (there’s a factor of +/- 2). On 11/10/11 the EUR/USD declined to 1.34837 and then rallied to a high of 1.38580. Our analysis of price and time allowed us to anticipate a decline of approximately 185 pips (11/4/11) and a rally of approximately 310 pips (11/10/11).

ANALYSIS
The EUR/USD continues to trade within its Bullish Pennant. The manifestation of the waves within the pennant appears to be unfolding in a larger degree 5-wave corrective pattern. This larger degree 5-wave corrective pattern is normal for a Bullish Pennant formation. Our long term bullish outlook hasn’t changed and we’re still anticipating a rally that will trade towards and potentially above the swing high of 1.51437. The manifestation of the rally from 1.31456 suggests that the decline from 1.49385 is more than likely a completed corrective decline. The minor weekly momentum indicators signal a potential choppy market over the next few trading days. Should the EUR/USD close below 1.35077 that will open the way for a decline back down to its minor bearish target zones of 1.34683 – 1.34568 & 1.32711 – 1.32419 and potentially retesting the lower trendline of the Bullish Pennant.
The rally from 1.31455 still appears to be unfolding as the 4th leg of the pennant. We are still expecting a 4th leg that will rally towards the upper trendline. The minor weekly momentum indicator is bearish suggesting a short term decline towards the bearish target zones is still a strong possibility. We will be watching this pattern much more closely and looking for additional clues during this week’s chat room sessions.

Trading pennants can sometimes become very tricky and somewhat difficult. A suggestion would be to focus on the lower timeframe charts and look for a completion of a bearish pullback or retracement. The completion of the bearish pullback or retracement will be a signal that the higher timeframe bullish momentum may be resuming.

TIMING
With the EUR/USD trading within a Bullish Pennant, the higher timeframe timing projections allow us to anticipate a breakout of its Bullish Pennant may occur between 3/4/12 & 3/18/12 (there’s a factor of +/- 2). The lower timeframe timing projections allow us to anticipate a major daily swing may occur between 11/13/11 – 11/15/11 & 11/17/11 – 11/18/11 (there’s a factor of +/- 2). Timing projections allow us to be prepared for and to project a potential turning point in the marketplace.

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.


9
Nov 11

Weekly Insight (Analysis by Al “Gunny” Davis)

Attend our next free web conference, Real-Time Forex Analysis Using Elliott Wave Analysis: Asian Session, scheduled for November 9 at 8 pm Eastern Time, 0100 GMT. Register athttps://cashmechanics.omnovia.com/registration Also, check out our daily analysis of 6 major currency pairs, FX NOW athttp://cashmechanics.com/fx-now.html Weekly Insight(analysis by Al “Gunny” Davis) EUR/USD: Look for Swing PointREVIEWAt the time of last week’s analysis the EUR/USD was trading at 1.41453.

Our long term price analysis was bullish. The lower timeframe momentum indicators were overbought and we anticipated a short term decline of the EUR/USD over the next few trading days. We anticipated a close below 1.40852 would open the way for a decline down to a lower timeframe bearish target zone at 1.40370 – 1.39770. We also projected that a close below 1.39770 would open the way down to the bearish target zone at 1.36129 – 1.35077 and potentially a retest of the lower trendline. On 11/1/11 the EUR/USD declined to 1.36080 which was well within our target zone of 1.36129 – 1.35077. In our timing analysis we were anticipating a significant swing point on the EUR/USD between 11/4/11 – 11/7/11.

With our timing analysis still a possibility, we’re anticipating the EUR/USD will establish a significant swing point over the next few trading days. Our successful analysis of price and time allowed us to anticipate a decline from 1.41453 (10/28/11) to 1.36080 (11/1/11) for a total decline of approximately 545 pips. ANALYSISThe EUR/USD continues to trade within its Bullish Pennant. The manifestation of the waves within the pennant appears to be unfolding in a larger degree 5-wave corrective pattern. This larger degree 5-wave corrective pattern is normal for a Bullish Pennant formation. Our long term bullish outlook hasn’t changed and we’re still anticipating a rally that will trade towards and potentially above the swing high of 1.51437. The manifestation of the rally from 1.31456 suggests that the decline from 1.49385 is more than likely a completed corrective decline. With the manifestation of the corrective pattern and the lower timeframe indicators, we anticipate a minor rally that will trade above 1.38670 and potentially retest its 200 period moving average before a decline below 1.36080.

We have projected minor bullish target zones at 1.39270 – 1.39570 and 1.40030 – 1.40570. We anticipate the EUR/USD may also trade in a sideways corrective pattern (range) over the next few trading days and oscillate between its two minor bullish target zones and the target zone of 1.40852 – 1.41835 . A close below 1.36080 opens the way for a decline down into the lower range of the 1.36129 – 1.35077 target zone. Should the EUR/USD close below 1.35077, then we will be anticipating a decline down to its minor bearish target zones of 1.34683 – 1.34568 & 1.32711 – 1.32419.The rally from 1.31455 still appears to be unfolding as the 4th leg of the pennant. We are still expecting a 4th leg that will rally towards the upper trendline. The weekly momentum indicator is still bullish suggesting a rally towards the minor bullish target zones is still a strong possibility.

The weekly momentum indicators are also signaling the potential for a long term sideways corrective pattern or a sharp decline. We will be watching this pattern much more closely and looking for additional clues during this week’s chat room sessions.Trading pennants can sometimes become very tricky and somewhat difficult. A suggestion would be to focus on the lower timeframe charts and look for a completion of a bearish pullback or retracement. The completion of the bearish pullback or retracement will be a signal that the higher timeframe bullish momentum may be resuming.TIMINGWith the EUR/USD trading within a Bullish Pennant, the higher timeframe timing projections allow us to anticipate a breakout of its Bullish Pennant may occur between 3/4/12 & 3/18/12 (there’s a factor of +/- 2). The lower timeframe timing projections allow us to anticipate a major daily swing may occur between 11/4/11 – 11/7/11 & 11/12/11 – 11/14/11 (there’s a factor of +/- 2). Timing projections allow us to be prepared for and to project a potential turning point in the marketplace.


8
Nov 11

Us Dollar Higher Due to European Debt Crisis.

The US dollar has been gaining strength on the Forex Market. The cause
of this event seems to be the common trader’s interest in risk aversion. Cash
Mechanics has the inside scoop.

In Europe, the Italian Government is on the verge of a crisis mirroring
that of Greece, which is keeping Forex Traders on their toes about making cash
trade decisions. Although Greece did manage to come to a resolution, and will
most likely pull their way out of their current financial state, it seems highly
unlikely that there will be any room for growth or change of the economic
system. From a Forex Trading Perspective it would be unwise to depend on the
growth of Greek Currency, and it would be a risky move to dabble in European
Currency. A wise decision would be to analyze the Cash Mechanics of European
Economics from a distance, while keeping the bulk of your investments in a
relatively stable currency like the US dollar.

In other news, there are rumors circulating that Italian prime Minister
Silvio Berlusconi might soon lose his governing majority, creating further
instability in the European zone. Eurpoean officials are preparing to meet to
finalize the European Finacial Stability Facility (EFSF) Rescue fund. Although
some hints as to how they will funded have been disclosed, a comprehensive
idea has not been announced as of yet.

Once again, trade Euro at your own risk. There is no certainty of the
further condition of the European currency on the Forex Market, and there is
no guarantee that Forex Traders will benefit from Trading this currency.

For More information on Forex Tips, Trading Advice, Technical Analysis, and
Trading Education visit www.Cashmechanics.com. Sign up to receive Cash Back
on your Forex Trades. Good luck in your trading and watch out for more news
and alerts.