MP FOREX ADVISORY

The past couple of trading days have been quite challenging as we have witnessed higher than normal levels of volatility, which have proceeded right into the late hours of the US session – a period that is normally characterized by calmness and stability.  We ended up cutting a couple of trades for small losses – one in the EUR/GBP and another in the EUR/USD.  However, we were able to make ground back on Thursday as we grabbed some pips in a short position in the EUR/USD.  We also ended up roughly breaking even in trades in the GBP/USD and the USD/JPY.  News reports involving the Greek debt crisis keep hitting the market like a recurring bad dream - putting continued selling pressure on the Euro Dollar and injecting apprehension and instability into the market. 

Today, we made some profit on several trades in the GBP/USD as we played the tight afternoon range before the opening of the Asian session.  The EUR/USD is flirting with the 2010 low around 1.3433.  A break of that level could send this pair tumbling down to the 1.3000 level over the coming weeks.  The GBP/USD has also been under quite a bit of selling pressure since the 0:00 GMT open yesterday.  A worse than expected British CPI Report early this morning has not helped this pair.  Tomorrow, we look forward to the release of the US Core Durable Goods Report and New Home Sales.

Today we entered a short position in the GBP/USD at 1.5246 and made some good profit.  It has been a very erratic week in both the EUR/USD and the GBP/USD as we have seen substantial up and down daily swings.  The EUR/USD briefly broke below the 1.3600 level today, and it appears to be headed for further declines tonight.  A break of the 1.3580 level should signal more down side risk.

We have not seen any action over the past couple of trading days.  Yesterday, we remained on the sidelines because the Fed Funds Rate and the FOMC statement were released late in the US session, which created much higher than normal volatility.  Today, we had orders in in both the EUR/USD and the GBP/USD; however, netiher pair triggered our trades.  We definitely expect to see some action tomorrow.

Today, we entered trades in both the EUR/USD and the GBP/USD, netting out a small profit for the day.  Since the bottom has been falling out of both currency pairs since the open of the market yesterday afternoon, we played it safe and only rode the short side of our trade signals this afternoon.  Both the EUR/USD and the GBP/USD appear to be headed for further declines this week.  Key support levels we will be watching tonight is 1.5000 in the GBP/USD and 1.3600 in the EUR/USD.   

We saw quite a bit of choppy price action today.  The GBP/USD suffered early in the European session after the release of a terrible British Manufacturing Report.   The EUR/USD, after an initial drop to around the 1.3543 level, surged late in the European session to a stone’s throw away from the 1.3700 level before closing for the day around 1.3643.  We entered some trades today in the GBP/USD, which we decided to close for a very small profit after receiving an alert from one of our volatility filters.  Tomorrow, we will look to the US Unemployment Report, along with the US Trade Balance Report for direction. 

Today we were able to cature some good profit by capitalizing on the choppy price action in both the EUR/USD and the GBP/USD.  After retracing back to near the 1.5200 level near the beginning of the week, the GBP/USD has sunk below 1.5000 again today and appears to be headed for more declines.  If the 1.4934 level gives way, we are looking for further declines possibly down to near the 1.4800 level before the end of the week.  We will be monitoring the British Manufacturing numbers, which will be released early tomorrow morning. 

Today, we entered a short position in the EUR/AUD, which was spread across multiple price points.  Our price target was never reached and we ended up cutting the trade just before the beginning of the Asian session in order to reduce our exposure.  After several weeks to the down side, it appears that the EUR/USD may be forming a reversal or at least retracing some of the recent decline; we will look for confirmation of this as we proceed through the week.

We started the new month off on a good note today as we bagged some profit in a series of short trades in the EUR/JPY and in the GBP/USD.  We are approaching the market with an abundance of caution as we continue to see extremely high levels of volatility.  Today, the GBP/USD fell more than 400 pips to a 10 month low due to political uncertainty in Great Britain. 

Today we entered short positions in the GBP/USD, the USD/JPY, and the EUR/USD, and we generated profits in all three pairs.  Today was yet another extremely volatile day with both the GBP/USD and the USD/JPY more than doubling  their respective recent daily average price movement.