Monday, August 30, 2010

8/30 Forex

  • Euro moves to bull phase against the yen (EUR/JPY).
  • U.S. dollar turns bearish against Canadian loonie (USD/CAD).

ppspps openupper pivotlower pivot
EUR/USD US$1.27 US$1.32 aug11 US$1.34 US$1.25
USD/JPY¥84.65 ¥85.15 aug24 ¥88.41 ¥83.96
GBP/USD US$1.55 US$1.59 aug11 US$1.60 US$1.51
EUR/JPY ¥107.41 ¥107.37 aug17 ¥115.86 ¥104.43
USD/CAD C$1.06 C$1.05 aug27 C$1.06 C$1.01
USD/MXN M$13.15 M$12.70 aug20 M$13.37 M$12.24

The preceding bear phase on EUR/JPY carried the price down 5.5% beginning Aug. 10. The Bank of Japan met in an emergency meeting on Monday that was intended to take steps a weaken the yen, a good thing for business in an export-oriented country like Japan.

The yen strengthened in anticipation -- the bull signal -- and then today weakend in disappointment over the actions that were actually taken. All in all, the price action has pretty much been a wash, Monday's decline retracing Friday's rise.

The preceding bull phase on the USD/CAD pair carried the price up 1.8% in five trading days.

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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