Monday, August 16, 2010

8/16 Forex

  • USD/JPY plummets although bull phase remains in place.

ppspps openupper pivotlower pivot
EUR/USD US$1.28 US$1.32 aug11 US$1.34 US$1.25
USD/JPY¥85.29 ¥85.915 aug13 ¥88.41 ¥85.20
GBP/USD US$1.57 US$1.59 aug11 US$1.60 US$1.51
EUR/JPY ¥109.54 ¥113.50 aug10 ¥115.86 ¥108.62
USD/CAD C$1.04 C$1.03 aug10 C$1.06 C$1.01
USD/MXN M$12.64 M$12.56 aug6 M$13.00 M$12.24

The dollar's decline against the yen (USD/JPY) took back all of Friday's gains, when the currency pair moved to bull phase on Person's Proprietary Signal (pps). The price halted its decline at the lower monthly pivot.

In the 11 trading days this month, the pivot has been touched and reversed four times and pierced three times will pullbacks above the pivot.

It is a strong support level. That's not to say that it can't be broken. It does say that a persistent break is a grave matter indeed for traders holding long positions.

U.S. Long-term Treasury bond yields have fallen sharply today, decreasing the attractiveness of the dollar.

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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