Thursday, July 15, 2010

7/15 Forex

  • U.S. dollar moves to bear phase against the yen, using Person's Proprietary Signal (pps) on a swift drop that wipes out prior bull-phase gains.
  • Cable pierces upper pivot in rise against the U.S. dollar.
ppspps openupper pivotlower pivot
EUR/USD US$1.2878 US$1.2236 jul01 US$1.2510 US$1.1602
USD/JPY¥87.35 ¥88.30 jul15 ¥91.49 ¥85.29
GBP/USD US$1.5360 US$1.5176 jul14 US$1.5266 US$1.4021
EUR/JPY ¥112.40 ¥110.03 jul06 ¥112.46 ¥103.05
USD/CAD C$1.0426 C$1.0543 jul07 US$1.1024 US$1.0291

The USD/JPY currency pair spent five days in bull phase before today's switch. News reports attributed the dollar's fall to declining producer prices and less than happy talk from the Federal Open Market Committee minutes.

Altogether, the bull phase produced a 0.8% gain in price. That gain had been wiped out entirely by 8:30 a.m. Eastern, as the price of the pair fell.

Even so, the pair is trading well above the lower Person's Pivot

USD/JPY Person's Monthly Pivots
  • ¥91.49, +4.7% (upper)
  • ¥89.89, +2.9% (midline)
  • ¥87.35 <== You are here.
  • ¥85.29, -2.4% (lower)
The British pound's upward charge in trading against the U.S. dollar breached the upper pivot, a level that had been tested at yesterday's close.

The pound benefited from the same economic growth worries that battered the dollar against the yen.

This is the GBP/USD pair's second day in bull phase, and the move for the two days has so far carried the price up to 1.4% at today's high.

GBP/USD Person's Monthly Pivots
  • US$1.5360 <== You are here.
  • US$1.5266, -0.6% (upper)
  • US$1.4805, -3.6% (midline)
  • US$1.4021, -8.7% (lower)

The analysis uses the daily Person's Proprietary Signal, developed by John Person, and the monthly Person's Pivot, which he also developed.

These are black box signals -- the "proprietary" means that Mr. Person knows how they work under the hood, and I don't. But they have shown a fair degree of success in identifying good entry and exit points, and I find them useful.

On the glance, "pps open" means the price at the start of trading in the United States on the day the signal appeared.

Tim Bovee, Private Trader tracks the trades of a private trader for his own accounts. Nothing in this blog constitutes a recommendation to buy or sell stocks, options or any other financial instrument. The only purpose of this blog is to provide education and entertainment. No trader is ever 100 percent successful in his or her trades. Trading in the stock and option markets is risky and uncertain. Each trader must make trading decision decisions for his or her own account, and take responsibility for the consequences.

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