Forex 618 G7 Trading

Euro volatility hits 21 year low!

The attached chart shows that the 14 week Average true range (ATR) for the euro is at the lowest it has been for the past 21 years. Such low volatility means that trading ranges have contracted dramatically, and there are few opportunities to make money with daily movements so low. As volatility is somewhat cyclical, we expect that volatility will increase in the near future, and much more dramatic moves can be expected. Traders welcome this, because without movement there is no profit! the big question is whether dollar weakness (and hence euro strength) will continue. With the dollar once again at record lows, it is no wonder that these questions are being asked. And that is the reas on why volatility has dried up!

New website and service!

Hi readers

Sorry about the lack of posts in the past few weeks, but I have been very busy re-designing my sites www.forex618.net and www.forex-science.com Why not go and take a look at the new special deals I have made available and read what our 144 clients (as of today) are saying!

I will be updating more regularly with special articles, reports and comments about the market in this blog, so keep tuned regularly and email me/reply to a post if there is anything specific you wish me to discuss - I would be glad to help out.

It's been a busy trading month in May, with very difficult markets - record low volatility and lack of direction have made profits scarce for many traders. However, I am happy with our result and we are heading for another profitable month at www.forex618.net

Good luck and good trading until next time!

James

Today's update

Today's trade suggestion: We have broken above the weekly reversal level and the hourly channel top (see charts), and this means that momentum has turned bullish. We will now look to buy dips to 1.9780 - 1.9820 (1.9760 MAX), with a first target of 1.9900, and then 2.0000. If we can hold above 1.9850 today, we should get to 2.0000 sooner, rather than later.

Key G7 Support levels: 1.9780/1.9820, 1.9760

Counter-trend opportunities: None

GBP/USD Hourly chart:

Is the Pound setting itself up for a BIG FALL?

The attached GBP/USD chart shows a type of "diamond reversal" pattern which is a rare pattern which usually appears at the top of a trend and signifies a significant drop. Whether this one will play out or not, nobody knows, but it makes the odds of trading long-term long cable positions rather less attractive. We personally feel that dollar weakness will continue to push the pound higher towards 2.0000 and higher, but note that as we apprach this huge number, volatility and risk will increase considerably.

If you need some help in managing this, why not visit www.forex618.net to spend some time with us in our trading room?

Good luck and good trading!

Trading requires patience!

The euro has been stuck between a rock and a hard place for over 5 weeks - that is until yesterday. As expected, the Euro rallied through 1.3050 with a strong bullish candle. This is a classic breakout (see chart) which should now follow the classic "retrace to resistsnce-turned-support" before the next rally. Watch for a dip to 1.3050/80 now and BUY, stops under 1.3020. the next stop is 1.3150 and then 1.3300. See you at the top!

Euro trapped between two strong men!

The Euro has been trapped between in a range for over 5 weeks now, and there are signs that traders are getting frustrated. It is interesting that the price action is also trapped between the daily 50 and 100 simple moving averages. In the attached chart, you can see that these SMA's have formed a perfect sandwhich with the price action being squeezed ever tighter in the middle. It's only a matter of time before this explodes! Which way? Who can tell. For now our bet is upwards, but time will tell. If you want our daily signals and reports, simply visit www.forex618.net to get a free voucher to our services. See you in the trading room!

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For those who don't know, www.forex618.net sends its members daily trading signals and reports for the forex market. Our system is based on the G7 system from www.forex-science.com Why not check it out?

We are offering a free discount voucher for those joining us for the first time - visit www.forex618.net to get it now.

Members can make use of a low fixed monthly fee of only $99.00 or a "Pay As You Go" system where you only pay for the pips we make you! Visit www.forex618.net/join.htm to read more.

Quick update on the pound in attached chart - hopefully the pound will hold above 1.9550  - the low we expected it might reach.

See you in our trading room!

forex618.net daily currency report

Friday February 09 2007

This is only a guide. Please refer to our specific entry signals for exact entries and stops.

EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2860

Support levels: 1.2920, 1.2880, 1.2866

Strategy: Whilst above the weekly trend reversal level, buy dips to support after an entry signal.

Medium term: The euro has broken above the large flag formation which has dominated the technical picture in 2006. Now, whilst above 1.2900 (1.2800 max), the euro remains in an uptrend which is heading back towards 1.3600, the multi-year high, and possibly higher still, towards 1.4100. 

Today: Surprisingly docile compared to its counterparts yesterday, the euro ended up moving 20 pips higher by the end of the day, so very little has changed. No change to the strategy - continue to buy dips, whilst above 1.2860, but be aware that this range will break soon, and it is by no means clear which way. A daily close below 1.2800 will probably lead to a drop to below 1.2700, whereas a close above 1.3050 is needed to send the euro higher towards 1.3150 and then 1.3300.

GBP at junction

GBP/USD "should" try to hold above 1.9660 as it is at the daily trend line and Fibonacci support. However, the temptation to take out the trend line and make a new low t 1.9550/1.9500 - previous supprt and "spike low" might be too much of a temptation for the market. read our daily report for the big picture and see attached chart for more details! Signals and daily market reports at www.forex618.net

Weblog re-opened

Dear Readers

I have decided to re-open our weblog for forex618 members and also to the general public as well! We will be posting interesting articles and news, chart updates, analysis and special offers here, and we invite you all to watch this space regularly.

Today I want to make a start by showing the EUR/USD chart, where it can easily be seen that we have a "bearish flag" developing on the daily charts. Our longer term view is bullish, but this daily chart suggests otherwise at the moment. However, don't forget that 30-40% of chart patterns fail, and this often leads to large numbers of stopped out traders. Best to wait for the brekout and then continue to trade in that direction.

Good luck and stay tuned!

James