EUR/USD: 4-hour

Do you still have your BEAR goggles on? Then you might be interested in this EUR/USD setup! The 1.3900 major psychological handle has been a key resistance level in the past, so it may be wise to keep an eye on it, especially since price is still within striking range. Just remember to wait for confirmation from candlesticks before you act! Given the recent volatility we’ve been seeing, the market could very well be gearing up for a breakout.

Read more…

Fundamental Headlines

European Session Summary

Yesterday was shaping up to be an exceptionally disappointing day leading into a disappointing weekend, as news reports surfaced that the German leadership bloc was considering not attending the Euro-zone summit this weekend.

Read more…

***Economic Data***
– (IS) Israel Sept Consumer Prices M/M: -0.2% v 0.0%e; Y/Y: +2.9% v +3.1%e
– (PD) Poland Sept M3 Money Supply M/M: +1.6% v +0.9%e
– (CA) Canada Aug Manufacturing Sales M/M: +1.4% v +0.5%e
– (US) Sept Import Price Index M/M: -0.4%e v -0.4% prior; Y/Y: 12.4%e v 13.0% prior
– (US) Sept Advance Retail Sales: +1.1% v 0.7%e; Retail Sales Less Autos: +0.6 v +0.3%e; Retail Sales Ex Auto & Gas: +0.5% v +0.4%e
– (US) Oct Preliminary University of Michigan Confidence: 57.5 v 60.2e
– (US) Aug Business Inventories: +0.5% v +0.4%e
– (MX) Mexico Central Bank leaves the Overnight Rate unchanged at 4.50%

– US equity markets retraced most of their losses from yesterday’s session in the pre-market this morning, thanks to some strong earnings out of Google and renewed optimism that Europe will get its act together to cope with the debt crisis. Read more…

There was just the one trade this week, and that was based on my early morning breakout system. My 4 hour trading system (see right for more details) didnt throw up any opportunities, but we are in a transitional phase at the moment with the daily Supertrend indicator turning positive (or about to turn positive) on the FTSE and some of the major currency pairs.

Anyway with regards to my one breakout trade, it was on the GBP/USD pair as always. The overnight range on the GBP/USD pair was generally too wide on most days, but yesterday it was just 38 points.

Read more…