Thursday, June 11, 2009

June 11, 2009 Forex Market Recap

British pound made its first attempt to breakout the high of June 10 (1.6473) during London session. This breakout lacked follow through price action, which is a typical trick for a narrow range day play ( NR7). Nevertheless, this dip was still above the pivot point, and formed a higher low, which indicated the uptrend is still intact. After the 8:30am event, pound made another breakout, long at this spot would be a high probability trade. On hourly point and figure charts, pound made a double top breakout pattern at 1.6466.

After the 8:30am event, euro formed a pin bar and higher low on hourly chart, which sat on the upward trend line. There is a confluence of pivot point (1.4010) and 10-day EMA (1.4012) for euro. After breakout this confluence zone, the upswing surpassed another confluence area of downward trend line and 200 EMA on hourly chart. Euro rallied the most of US session and reached its daily range (the green horizontal line).

Japanese yen offered two great swing opportunities. The first opportunity happened in London session after yen crossed the pivot point 97.91. The up swing met resistance around the high of June 10 (98.43), and formed a pin bar on hourly candlestick chart. This resistance was also reinforced by the downward trend line, which offered a great short swing opportunity. The down swing ended at the 200 EMA on hourly chart.


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