The London Open

[FX Pimp]

Good Morning.

I hope you all had a lovely weekend. It's been miserable here is the U.K but relaxing all the same, watching the Wombledon Finals. What a match, Nadal v Federer! A very well deserved victory by Rafa.

Anyway, on to business.

There seems to have been a little bit of action throughout the course of the evening with a little Dollar strength in evidence. Gold almost at the 4hr 50sma and EURUSD & GBPUSD both sat on the daily 20ema.
As for the USDJPY, she's finally broke the 4hr 50 and is desperately trying to break up. This is the trade I was looking for on Friday morning that just didn't materialise.
Naturally this is not helping the EURJPY position I mentioned last night.
However, those of you able to trade it could've picked up 60 pips in just a couple of hours.
Is it still worth looking at / holding ?
USDJPY finding support is most certainly not doing us any favours, but technically all the traffic is overhead.
I didn't trade it and not having made significant new lows and no longer overly interested.

Crude is looking quite heavy up there, but I've seen this baby bounce off this 4hr 20 so many times and would be careful shorting it unless if fell through nicely.
Could this be the start of somthing a bit bigger for the Greenback? Let's wait and see.

As for the potential shorter term trades for this morning, it looks like we've missed the boat, sadly. Unless you were trading duing the Asian session, you will finf it difficult fo find a safe entry on any of the majors.
Gold has gone too, leaving us potential short oppotunities for Crude, below $143.60.

Not a very interesting start if like me you get up at 5:30 on a Monday morning to see this. Maybe a nice cuppa tea and back to bed.
I'm not going to start looking at minor currency pairs. I'm happy to be patient and wait for a decent opportunity to arise on the indices when they open.

Have a good day. More later.

[ChrisFx]

Good idea DC. Thanks

[FX Pimp]

Hi Guys,

I hope some of you were able to take the crude trade mentioned in this morning's post.

Here's a chart of what I was looking at. The trajectory on the overhead 60m 20 slowly but surely compressing the price in tight against the 4hr 20, with an eventual break and a fall for 150 pips.

Well done Chris. I know you managed around 70 pips from that. Great stuff. Very pleased for you.

More like that to follow. I'll be back at 1pm for the afternoon info.

Just some food for thought. IF Crude continues to fall, thus giving some upside impetus to the Dow Jones, I am liking the potential of a long on the DAX after a little 1-2-3 retracement, support and go.
It's against the overall trend, so pretty dangerous but with a tight stop just beyond the low after the retrace it could tackle the 4hr 20ema up at 6410 again. Lets see (chart attached)
Crude will need to remain under $143.00 AND DJI Need to find support. Let the CCI10 cross be your guiding star !

[Jeremy_W]

Hi

Great trade again Pimp Man..

Well just after the room closed it looks liks a few oportunites presented themselves but i think there are good reasons for me not to take them.

EURUSD is very close to a short signal on the 15 min, too close to the 4hr 50.
USDCHF ditto to EURUSD but long.

Gold appaers to have made a double bottom on the 5 min limiting the moves of the above..

USDJPY finding it hard work at the daily 200ma.

GBPUSD left the station a long time ago...

Hopefully more set ups later on or i'll have to wait for tomorrow.

Jeremy

[FX Pimp]

There's another 30 quick pips in under an hour for followers of the thread.

Crude was struggling o get above $134.00, DJI did find some support and DAX did exactly as discussed in my previous post.

Not a lott of FX news for those of you who only follow tthe currencies, but seriously, you really should keep your options open.
The commodities and indices orchard provide many a fruit for the hungry.

[FX Pimp]

Dow is desperate for a pullback and I'm wondering if this could be the day for a little run north.
She's started off well and after a little pullback seems ready for a bit more.

Of course we'd need to see Crude behaving, but if the black stuff can remain below $142.00 this might be set-up for a little push higher.
Slightly more risky than the initial move with the m.a's already fanning out, but potential none the less.
Ideally I'd like to see a bounce off the 15m 20ema not just the 5m.
Won't be getting involved myself. Have seen these little double tops far too often on these shorter timeframe charts. Have made my pips for the day and am now having a nice cold ice cold, but it's my duty, I feel, to keep you up to date with potentials.

[ChrisFx]

Good posts DC, Dow shot off a bit quick, got a small 123, but doesn`t seem to want to go beyond 11400 at the moment. As you say made my pips for the day, much smoother in the morning for trading.

[rockdrive]

Originally Posted by FX Pimp

Dow is desperate for a pullback and I'm wondering if this could be the day for a little run north.
She's started off well and after a little pullback seems ready for a bit more.

Of course we'd need to see Crude behaving, but if the black stuff can remain below $142.00 this might be set-up for a little push higher.
Slightly more risky than the initial move with the m.a's already fanning out, but potential none the less.
Ideally I'd like to see a bounce off the 15m 20ema not just the 5m.
Won't be getting involved myself. Have seen these little double tops far too often on these shorter timeframe charts. Have made my pips for the day and am now having a nice cold ice cold, but it's my duty, I feel, to keep you up to date with potentials.

Le Pimp,
Some very interesting tips from this morning. I think the DJ was not quite ready and the little pull back there and hte FTSE probably caught some off guard. Got hussled for negative pips with both trades...Inevitably, the US came back from a holiday and the pull back on the DJ eventually happened. Well done to Monkey Boy on the 11400 target. Some smashing 1,2,3's on DJ and FTSE. I was off watching Hancock - a lovely distraction on a Monday! I think you would do well to swap spandex for leather - its so 2008!

There were some lovely trades off the 5 min chart on gold as it bounced off the 915 area and a little resistance line I drew in around 924 which also happens to be the 15m 200. Not quite the strategy but using the CCi's some lovely trades were possible.

Crude is for the big bears with scary teeth and claws - I prefer trades with less bite.....I'm more a hot and spicy tikka massala type trader and not a full on Vindaloo....

As I write I am looking at a bounce of the E/U off the 60m 200 and 4 hr 50. Definitely not the strategy, but a cheeky potential 20-30 pips. A fridge full of beer is calling and the sun is clearer setting over the yard-arm, so beer or short!

Me thinks its a safer bet to have the beer and save the short for another day.

Well done Le Pimp - several outstanding calls today, Nostradamus would have been envious....

Rockie Hancock

[Hemal]

Hi Guys,

After an interesting day, full of pullbacks using our elastic band approach I understand that a few of you had a good few trades on the indices and crude... great trading!!


Unfortunately I had some technical issues on various charts which meant that I was using two computers this morning. (Using two wireless mice can get a little confusing, especially first thing in the morning) Anyway that's all sorted now, and although I missed out on the pm session I understand that allot of fellow members took some great trades.

As for myself, I concentrate on Gold, EURUSD, & GBPUSD. For anyone in the room, they will know that I was shouting gold back down to 910-915, before a power up.

Now, assuming that this $ strength is short lived, I would be looking to take a long position on gold entering around the 923/924 level, which would be a 123 move on the five min chart, confirmed by the 10/63 CCI, and a double bottom, and higher high.

In relation to cable, which has bounced of the daily 50MA and boxed in between the daily 20, I think the best play would be to wait for direction from crude and gold, then play the breakout either way. As indicated above, I like it to the north side, if crude/gold can find support.

Likewise with EURUSD, I of course would be a buyer given my comments above. Given our MAs are closer together, and our CCIs are showing the break to the upside, at the moment in my humble opinion this is currently a better opportunity than cable.

I'm off for a long bath soaked in radox!! Speak to you all in the morning.

Hemal

[Hemal]

say a lie, it's not really my first post here, but you know what I mean.

H