DAILY TECHNICAL REPORT 01 November, 2011 Please note: None of the strategies below represent trading advice or trading recommendations of any kind. Please refer to our full disclaimer. M S-TERM MULTI-DAY L-TERM MULTI-WEEK STRATEGY/ POSITION ENTRY LEVEL OBJECTIVES/COMMENTS STOP EUR/USD Î Ð SHORT 2 1.3950 1.3650/1.3470 (Entered 01/11/2011) 1.3840 GBP/USD Ï Î Buy limit 3 1.5840 1.5940/1.6153/1.6400 1.5740 USD/JPY Î Î Buy Stop 3 78.20 80.05/82.00/83.30 (Entered 01/11/2011) 76.50 USD/CHF Ï Ï LONG 3 0.8600 All three objectives to 0.9000 (Entered 28/10/2011) 0.8800 USD/CAD Ï Ï LONG 3 1.0050 1.0270/1.0660/1.0850 (Entered 01/11/2011) 0.9890 AUD/USD Î Ð SHORT 3 1.0570 1.0230/1.0010/0.9710 (Entered 01/11/2011) 1.0750 GBP/JPY Ï Ð Buy limit 3 122.70 124.10/126.00/127.32 121.30 EUR/JPY Ï Ð Await fresh signal. EUR/GBP Ð Î Look to sell higher. EUR/CHF Î Î Await fresh signal. GOLD Ð Î SHORT 3 1710 1600/1530/1300 (Entered 01/11/2011) 1760 SILVER Ð Î SHORT 3 34.1300 29.9700/26.0700/23.3400 (Entered 01/11/2011) 35.6880 Ron William, CMT, MSTA Bijoy Kar, CFA WINNER BEST SPECIALIST RESEARCH DISCLAIMER & DISCLOSURES Please read the disclaimer and the disclosures which can be found at the end of this report Notes: Entries are in 3 units and objectives are at 3 separate levels where 1 unit will be exited. When the first objective (PT 1) has been hit the stop will be moved to the entry point for a near risk‐free trade. When the second objective (PT 2) has been hit the stop will be moved to PT 1 locking in more profit. All orders are valid until the next report is published, or a trading strategy alert is sent between reports. MIG BANK / Forex Broker 14, rte des Gouttes d’Or CH-2008 Neuchâtel Switzerland Tel +41 32 722 81 00 Fax +41 32 722 81 01 [email protected]www.migbank.com
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DAILY TECHNICAL REPORT 01 November, 2011
Please note: None of the strategies below represent trading advice or trading recommendations of any kind. Please refer to our full disclaimer.
M S-TERM MULTI-DAY
L-TERM MULTI-WEEK
STRATEGY/ POSITION
ENTRY LEVEL
OBJECTIVES/COMMENTS STOP
EUR/USD SHORT 2 1.3950 1.3650/1.3470 (Entered 01/11/2011) 1.3840
GOLD SHORT 3 1710 1600/1530/1300 (Entered 01/11/2011) 1760
SILVER SHORT 3 34.1300 29.9700/26.0700/23.3400 (Entered 01/11/2011) 35.6880
Ron William, CMT, MSTA
Bijoy Kar, CFA
WINNER BEST SPECIALIST RESEARCH
DISCLAIMER & DISCLOSURES Please read the disclaimer and the disclosures which can be found at the end of this report
Notes: Entries are in 3 units and objectives are at 3 separate levels where 1 unit will be exited. When the first objective (PT 1) has been hit the stop will be moved to the entry point for a near risk‐free trade. When the second objective (PT 2) has been hit the stop will be moved to PT 1 locking in more profit. All orders are valid until the next report is published, or a trading strategy alert is sent between reports.
MIG BANK / Forex Broker 14, rte des Gouttes d’Or CH-2008 Neuchâtel Switzerland Tel +41 32 722 81 00 Fax +41 32 722 81 01 [email protected] www.migbank.com
2
DAILY TECHNICAL REPORT 01 November, 2011
www.migbank.com
Sharp reversal from key resistance.
Achieved PT1 objective at 1.3840 and reduced stop beneath breakeven,
thereby locking in profits and ensuring a risk free trade.
EUR/USD has extended its sharp reversal from key overhead resistance
(including an important 2 year trend-line).
The dramatic move has now confirmed the emotionally charged bull-trap
that we had anticipated and ultimately opens further downside momentum
through 1.3653 (18th Oct low), with scope into 1.3146 (Oct swing low).
Further pressure is also weighing from broad risk-related proxies. The euro
currently shares a high correlation of 0.85% with the S&P500 which is now
unwinding from new multi-week highs.
Inversely, the USD Index has turned much higher from recent support at
74.10. The renewed bull move targets the recent 6 month highs near 80.
Speculative (net long) liquidity flows are holding steady around their recent
spike highs (3 standard deviations from the yearly average). This will likely
remain strong and help resume the USD’s major bull-run from its historic
oversold extremes (momentum, sentiment and liquidity).
Special Report: EUR/USD ˝A Fall From Grace˝ ? Decline Targets 1.3770/1.3410. VIDEO
MIG Bank Webinar: “Why the US dollar is likely to gain up to 30% in 6‐12 months.”
USD/JPY’s latest intervention by the BOJ favours a test of that all-
important psychological level at 80.00. This marks the BOJ’s third time to
officially intervene on the rate this year, after it carved out yet another new
post WWII record low at 75.35.
Multiple DeMark buy signals were also triggered within the multi-week
base pattern which has now broken higher (as had been expected by our
low volatility measures).
The medium/long-term view is more bullish, favouring a sustained move
above our initial upside trigger level at 80.00, near 80.24 (post BOJ
intervention II high).
Keep in mind that such a scenario would help reactivate the longer-term
technical bias, including prior monthly DeMark™ exhaustion signals, within
the ending diagonal pattern, which was part of a major Elliott Wave cycle.
Only a sustained weekly close below 76.25 will lead to a reassessment of
the view and extend temporary weakness into 74.55.
Please select the link below to sign up for our MIG Bank webinar on USD/JPY. This will feature an update to our previous Special Report USD/JPY’s Long‐Term Structural Change (Wednesday, November 02nd – 15:00‐15:45 GMT).
‐ What do long‐term cycles tell us about the future of USD‐JPY? ‐ How do event shocks and Central Bank Interventions impact the market? ‐ Safe‐Haven Flows: A wave of change. ‐ High‐Probability Trading Strategies.
S-T TREND L-T TREND STRATEGY
Buy Stop at 78.20, Obj: 80.05/82.00/83.30, Stop: 76.50