Peter Bain Forex Trading Commentary for Tuesday September 19, 2006
Forexmentor.com Forex Trading Price Action
Back to the euro today folks. According to the latest COT stats. (commitments of traders report, as at last Friday), the hedge funds and the street money (read, dumb money) are now selling the euro. Of course, this move was set up by the Big Dogs (commercial traders) as far back as June. It can take upwards of three months for their sentiment to finally kick in. The euro has a ways down to go yet.
Narrowing the focus, last night, although MACD was bullish (albeit overbought), price was above the 200 EMA on the 1 hour chart, which was trending down. Another chance to sell a rally in a downtrending market. Where have I heard that before? Well, sure enough, we had negative divergene on MACD to price on the 15 minute chart coming into today's session, facilitating a nice drop in price. Any further rallies should be viewed with similar suspicion.
See today's chart at: http://www.forexmentor.com/campaign/sep1906.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
Back to the euro today folks. According to the latest COT stats. (commitments of traders report, as at last Friday), the hedge funds and the street money (read, dumb money) are now selling the euro. Of course, this move was set up by the Big Dogs (commercial traders) as far back as June. It can take upwards of three months for their sentiment to finally kick in. The euro has a ways down to go yet.
Narrowing the focus, last night, although MACD was bullish (albeit overbought), price was above the 200 EMA on the 1 hour chart, which was trending down. Another chance to sell a rally in a downtrending market. Where have I heard that before? Well, sure enough, we had negative divergene on MACD to price on the 15 minute chart coming into today's session, facilitating a nice drop in price. Any further rallies should be viewed with similar suspicion.
See today's chart at: http://www.forexmentor.com/campaign/sep1906.html
See latest sample AM Review at: http://www.forexmentor.com/sampler/
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