04/14/2009 Forex Market Comments

After good Friday's narrow range bar (NR20), yen chose to heading south. On the point and figure charts, yen made a bearish triple bottom breakdown at 99.50. The nearest downward target could be the 61.8% fib retracement level 98.03. The former swing low, also the 38.2% fib ret level 99.31 becomes resistance.



Yesterday British pound made a triple top breakout at 1.4766, a very bullish sign and beautiful up trending day for pound. The up thrust is not ready to challenge the former swing high 1.4956 yet. Pound formed a double top pattern.



Euro cooled off today, and remained below pivot point 1.3294 and 10-day ema 1.3300. There is no signal from point and figure charts. It's still an opportunity - an opportunity no to trade as stated in one of my day trading rules.

Narrow Range Day for British Pound

British pound formed a narrow range bar (NR20/ID) yesterday. On hourly point and figure charts, pound is in a 100 plus pips trading range from 1.4766 to 1.4633. Pound had a fake breakout at early London session. If pound take a breakdown, the 1st downward target would be 4570. Possible support may come from 50% and 61.8% Fibonacci retracement - 1.4532 & 1.4432. To trade narrow range bar, it's not necessary to predict the direction of the breakout, the only thing need to do is to follow the market's leading.