Wednesday, November 10, 2010

11/10 Forex

  • Dollar strengthens.
  • Australian and New Zealand dollars, Cable to bear phase against the U.S. dollar (AUD/USD, NZD/USD, GBP/USD).
  • U.S. dollar to bull phase against the yen (USD/JPY).

ppspps openupper pivotlower pivot
EUR/USD US$1.37 US$1.41 nov8 US$1.45 US$1.39
AUD/USD US$1.00 US$1.00 nov10 US$1.04 US$0.99
USD/CAD C$1.00 C$1.02 nov1 C$1.01 C$0.99
USD/JPY¥82 ¥81 nov9 ¥82 ¥80
GBP/CHF C$1.56 C$1.57 nov3 C$1.54 C$1.50
GBP/USD US$1.60 US$1.61 nov9 US$1.59 US$1.54
EUR/JPY ¥113 ¥114 nov8 ¥117 ¥112
AUD/JPY ¥82 ¥79 nov2 ¥85 ¥80
USD/CHFSF0.97 SF0.99 nov2 SF0.99 SF0.93
NZD/USD US$0.78 US$0.79 nov9 US$0.82 US$0.77
USD/MXN M$12.28 M$12.39 oct21 M$12.32 M$12.04

Reuters credits the U.S. dollar's strength on higher yields, which are certainly apparent in the U.S. bond markets this morning.

The bear phase on AUD/USD was accompanied by a decline to below the midline on the daily Person's chart. The preceding bull phase lasted six U.S. market days and carried the price up 1.7%

The bull signal on USD/JPY was accompanied by a price burst that exceeded the upper pivot level. The preceding bear phase lasted seven U.S. market days and resulted in a price rise of 0.2%. Basically, a wash.

The phase switch on GBP/USD brought the price down to the lower pivot. It ends an eight-market-day rise that carried the price up 2.4% beginning to end.

NZD/USD rose 4.5% in seven days during the preceding bull phase. The bear phase has brought the price down to the lower pivot.

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.

I also refer to the Heikin-Ashia trend or candlestick. The Heikin-Ashi averages six days for high, low, open and close, signalling uptrend if the close is in the upper half of the range and downtrend if it is in the lower half. The signal for opening and closing positions require confirmation through a turn in the 8-day exponential moving average.

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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