20070629 1315 GMT. Going into the US opening, further gains made into this nice trend. Only about a 18 pip retracement from the 'overheated' ADX reading in the previous post. It is worth noting that this type of move is like the spring uncoiling from the tight ranges for the past 2 days, while the market market time ahead of the FOMC interest rate decision.

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20070629 1041 GMT. The trend proves to be a strong one for the EURUSD. However with ADX reading reaching 75, some overheating in the trend engine could see a change, either a retracement or a pause.

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20070629 0948 GMT. A nice 5 min trend on the EURUSD. This is tradable, with the ADX and DMI lines providing the framework to work out to be on the long side and specific levels to enter.

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20070627 0533 GMT. 3 candles ago on 4 hour chart, EURJPY presented with a short signal. Entry zone is around 165.90-166.00 region. MACD provided the confirmation for the entry. Also notice the H&S pattern.

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20070626 1125 GMT. USDCHF failed to make headway and goes into sideways range. Stop not hit yet, so we'll have to see what happens.

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20070626 0850 GMT. A long trade fires off on the USDCHF at 1.2296, on the pivot low made in the war zone in between the moving averages.

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20070625 1247 GMT. As the ADX went below 25, trend strength weakened (from down), long on the break of the downward sloping trendline turned out to be a good one.

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20070625 0756 GMT. EURJPY short update. The trend continues down as the ADX shows strength.

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20070625 0650 GMT. A nice short on the eURJPY forex pair at 166.69. Basis was the breakout of the DMI with high ADX reading on the 5 min chart. A quick scalp trade.

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20070622 1223 GMT. A scalp trade long, using a technique by Dr Charles Schaap, who proposes the ADX trading strategies in his book. When ADX is strong and makes a peak above 25, longs were indicated (at the ellipse) when the +D1 line breaches its previous high. Stay posted, will try to post some trades on the 1 min EUR futures trading.

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20070615 0311 GmT. A long signal indicated at 1.3324.with stop 10 pips. Retracement is a bit steep, so this trade gets a B rating, it still has the pullback into the 'war zone' for a possible scalp trade.

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20070615 0051 GMT. EURJPY has rallied back up, is now above the 89 Exponential moving average. Stance turns bullish, until the price falls back below the 89 ema, where we will look for shorting opportunities again.

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20070614 1237 GMT. News on the PPI comes out, and we have the move we were looking for in the JPY futures short.

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20070614 0931 GMT. Can pick up a few ticks on the first 1/2 position on this trade.

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20070614 0735 GmT. A short at 8332 on the JPY futures. A short term sclap trade for about 5 to 15 ticks, stop loss at 10 ticks.

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20070613 2340 GMT. EURJPY is now at the moment of truth, either double bottoming out or breaking through. With bond yields surging and causing stocks to tank, the 'hedge' play on EURJPY seems to be panning out.

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20070612 1556 GMT. A double bottom on the EUR futures 5 min chart provides a good entry long.

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20070608 0827 gmt. iS THIS THE START OF THE eurjpy ROUT...

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20070608 EURJPY breaks below 89 ema on the 4 hr.

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EURJPY strategic positioning

There has been multiple euphoric episodes in equities that inevitably have led from boom to bust cycles, and when the downdraft comes, it is often difficult to find willing buyers for equities to get out. Dr Klaus Wellerschoff, Chief Economist of UBS Wealth Management recently went on an Asian tour and pointed out this interesting chart EUR/JPY cross currency rate versus Purchasing Power Parity of the Euro v Yen. There is a tendency of FX rates to revert to the mean of the PPP and overshoot to the other side after an extension. When and if world equities fall or correct, shorting the EURJPY will provide a 'hedge' for investors, is the argument

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20070606 1508 GmT. A nice downtrend in the EURJPY.

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20070605 Having a "Currency Dashboard" helps determine general strength/weakness in the USD, I find helps trade when the USD pairs are in consensus.

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