Wednesday, August 09, 2006

ERICH'S TRADE UPDATE for Tuesday August 8th

ERICH'S TRADE UPDATE
1: CURRENCIES FOR TUESDAY 8-8-06

September Australian Dollar ADU6
The Aussie fell off slightly today. If we get more of the same tomorrow I'll bring the entry down as well, but right now I'll hold off buying until we're above resistance.

*BUY September Australian Dollar at 7677
*Exit Stop: 7639
*Approximate Risk: $380 per contract
*Profit Target: 7793
*Potential Profit: $1160 per contract
*RRR: 3:1
*Degree of Risk: Moderate to HIGH

September British Pound BPU6
The BP stalled today so we can probably expect something lower tomorrow. Decision time as far as the stops go: either leave them below 189 if you're trying to ride the trend, or bring them below today's low AND put another buy order above the high in case we get stopped out.

September Canadian Dollar CDU6
The 8960 high today is past the 8950 line we were watching, but it might have been momentum that carried the market through here. We should know tomorrow.

September EuroFX ECU6
Ugly day in the EC. The plan for the stops reads exactly the same as for the British Pound.

September Japanese Yen JYU6
It looks like the Yen is going to head lower tomorrow, and if RSI is any indication, possibly for the short term as well, at least until we get another testpoint that is.

September Mexican Peso MPU6
I don't like the fact that the Peso stalled so close to the 92000 line, this could spell trouble for our trade tomorrow. While the best stop is still the original, you could put them below today's low to cover the trade on the first sign of reversal.

September Swiss Franc SFU6
The Swiss Franc had a bearish looking day today. I'm holding off here tomorrow, but something lower looks likely.

September US Dollar Index DXU6
RSI is hooking higher which would hint of higher rates to come. If the DX does head higher we'll be on hold until the next testpoint.

NO! The Currencies are NOT the only markets we cover! For the rest of the markets in all sectors covered by BOTH Tom and Erich in the Daily Updates, join our happy trading family at http://www.supportandresistance.com/subscribe.html