In yesterdays article Omar was explaining how the markets usually start to liven up after the summer ranges and as we “fall” into autumn. Here is his update and analysis that is usually reserved for members of our forex mentor group for the rest of the week:

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Did we get our wish??  Did we “Fall” into great trades??  

Interestingly enough, we have two distinct sets of pairs in this regard.

One set of pairs (Eur/Usd, Gbp/Usd, Eur/Gbp) has not moved much at all.

On the other hand other pairs (Eur/Jpy, Aud/Jpy and Usd/Jpy) have all broken out of their summer ranges and potentially great trades are lining up as we speak!!

Although we wanted to see the Fall markets arrive on the scene with bigger fanfare, we are at least seeing some pairs break out of ranges that have held for months and that is a great sign.

We must go after the trades that look good, and on the other pairs, we simply wait, as they will probably catch up to the action sooner or later.  One major surprise for me was the lack of struggle at major areas of resistance on the Yen-crosses.  I was able to protect much of the losses from the failed shorts, but I truly expected bigger bounces down from those major areas of s/r before the breakout.

Of course, as traders we must be flexible and work with what the market is giving us at the time.  The Yen-crosses have illustrated this.  We have had to change from short to long bias as the areas broke.  Daily candle traders though, have gotten to sidestep this and are in great position to take the pullbacks.  Heading into the end of the week, we are setup nicely on several pairs, and there is the opportunity for the other pairs to follow suit.

As an update the the geopolitical drama which is Syria, I think we are starting to see the markets calculate the lack of upcoming military escalation from the US and its allies.  We have seen gold fall back a bit, and crude certainly seems to be counting on less of a chance of US intervention as price has fallen.  This of course, is good news to us as currency traders, as the less of a chance of severe volatility and spikes in the market, the better.  We are not out of the woods yet, but politics seems to be slowing down the potential for a military escalation.  I will continue to be aware of the situation, but I am less worried about it having a massive impact in the upcoming days/weeks.

The Rest Of The Week:

I’m going to provide a “short list” of potential areas to trade from with a ranking from “most interested” to “less interested”.  OF COURSE I recommend watching the video for details, but it’s also nice to have a written reference for the best potential trades out there.  I wish everyone the very best in their trading and hope you all bag tons of pips by week-end.  Enjoy!!

1)  Usd/Jpy:  Long from 100.00 area

2) Aud/Jpy:  Long from 93.00 OR an M2 trade above 93.60 for a long

3) Eur/Jpy:  Long from 132.50

4) Gbp/Usd:  Long from 1.5750 assuming a breakout of this area

5)  Aud/Usd:  Long from .9300 assuming a nice breakout of this area (keep in mind .9325 is actually the previous high, so for more conservative traders, watch for a breakout above this area before getting into a trade)

New members please note: If I am looking to take a trade long, at for example 1.5000 , I place my order 10 pips above & 10 pips below for a short. This is because price often does not quite reach a major line and you need to allow for spreads.

We are NOT a “tipping service” our aim is to teach you how to trade for yourself. For more up to the minute updates do not forget to drop by the forum

Hope you enjoy the analysis!!  Best wishes and happy trading to all!!!

Author: Omar Eltoukhy

http://www.youtube.com/watch?v=zTBiLEf-H3U&feature=share&list=UUh9jKEbExtwL0MnwLBeyoyQ