Wednesday, August 09, 2006

ERICH'S TRADE UPDATE FOR Wednesday August 9th

ERICH'S TRADE UPDATE FOR Wednesday August 9th

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September Australian Dollar ADU6
The Aussie did dip lower today, so I'll bring the buy order in a little tighter. This does add risk to the trade since we're planning on entering before we clear the resistance around 7660 - 7670, which could bounce the market lower.

We're nearing the trendline support however, and are currently hitting support at 7600, so if it's going to go, it's gotta go soon.

*BUY September Australian Dollar at 7647
*Exit Stop: 7603
*Approximate Risk: $440 per contract
*Profit Target: 7797
*Potential Profit: $1500 per contract
*RRR: 3:1
*Degree of Risk: HIGH

September British Pound BPU6
Caught a break in the Pound as the market held the 190.50 support and traded higher today. This means that you should leave stops below the 190.50 line for tomorrow, but the outlook is better.

September Canadian Dollar CDU6
We got the bounce we were looking for, but truth be told I'm still a little reluctant to buy given the weak trend. I'll continue to watch tomorrow.

September EuroFX ECU6
The EC tried to push higher today, but without much to show for it. Stops should at least be at breakeven and you could consider putting them below today's low as well. Of course this is if you're trying to ride the market further. If you just want to protect accumulated profit jam them under the close.

September Japanese Yen JYU6
I was expecting more of a pullback in the Yen and the dipping RSI says that we might get it yet. Standing aside for Wednesday.

September Mexican Peso MPU6
Whew! That was close! Almost got nabbed by the Peso today as the market looked to see how low it could go! The falling RSI still has me concerned, but the high closing price is encouraging. If it's too much for you bring the stops to breakeven otherwise leave them below the low.

September Swiss Franc SFU6
The Swiss Franc is just barely bearish. I hope this changes soon. It might be what the other markets are waiting for.

September US Dollar Index DXU6
RSI higher, rates lower. Not a good combo. I'd expect RSI to win the toss so I'm holding off right now.