Free Daily Trade Plan For July 30 2010
[ForexChaser.com] Each day, ForexChaser.com team produces a set of eight trade plans for the foreign exchange market. The trade plans are the main drawing board of ForexChaser.com: this is the place where most trade ideas come from.
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Latest Update: July-30-2010, 09:00 ET
Eur/Usd Overview: The Eur/Usd is currently trading near the support trendline of an ascending channel. The fundamental picture of the Euro area is improving at this time, which makes us prepare for a bounce off this support trendline. Next week, we have the ECB coming to town, but for now the market is preparing for the U.S. GDP numbers. A weaker than expected numbers could help the Eur/Usd continue its uptrend.
Eur/Usd Options: Investors should look for a Call Ratio Backspread strategy.
| Percentage gain | Volatility | Trend | Signal | |
|---|---|---|---|---|
| Monthly | 6.70% | 14% | Higher | Buy |
| Weekly | 1.15% | 18% | Higher | Buy |
| Daily | -0.30% | 16% | Flat | Buy |
| 4-Hours* | 1.04% | 22% | Flat | Buy |
| Daily Trading Signals | Entry | Target 1 | Target 2 | Target 3 | Stop Loss |
|---|---|---|---|---|---|
| Long | 1.3090 | 1.3140 | 1.3190 | 1.3240 | 1.3030 |
| Short | 1.2960 | 1.2920 | 1.2865 | 1.2800 | 1.3010 |
How to trade the Daily Trading Signals?
Investors should use the Daily Trading Signals as a guideline for placing trades on the daily time-frame. These signals should be loaded only when the Entry area is touched and traders believe that the currency pair is likely to continue to move in order to touch the targeted areas. When the Target is touched, closed 50% of the trade and move the SL to the prior Target area or set a trailing stop for the order.
E.g. When Target 2 is touched, close 50% of the trade and move the SL to Target 1
| Important Price Points | Intraday Level 1 | Intraday Level 2 | Daily Level 1 | Daily Level 2 |
|---|---|---|---|---|
| Resistances | 1.3090 | 1.3180 | - | - |
| Supports | 1.2965 | 1.2900 | - | - |
| Daily Correlation | Eur/Usd | Gbp/Usd | Aud/Usd | Usd/Cad | Usd/Chf | Usd/Jpy | Eur/Jpy | Gbp/Jpy | Aud/Jpy |
|---|---|---|---|---|---|---|---|---|---|
| Eur/Usd | 100% | 83% | 71% | -31% | -56% | -60% | 83% | 36% | 61% |
Correlation quantifies how much two variables move together. In our case, it measures the relationship between two exchange rates, for example Eur/Usd and Usd/Chf. If the correlation coefficient is 0%, it means that there is no relationship between the two currencies (this happens very rarely). A 100% correlation means that the two currencies move identical, while a -100% correlation coefficient means that the two also currencies move identical, but in opposite direction.
| Eur/Usd Quantitative Forecast | 1-Day Forecast | 3-Days Forecast | 5-Days Forecast |
|---|---|---|---|
| Price | 1.3010 ± 0.0075 | 1.2900 ± 0.0160 | 1.2810 ± 0.0260 |
| Volatility | 16% ± 0.8% | 15% ± 1.3% | 15% ± 2.1% |
These are one step-ahead forecasts, built using ForexChaser.com premium quantitative modeling technique. The resulting numbers are based on mathematical studies and on hours of data-mining in order to provide the most accurate signals. One should note that due to the market’s tendency to be “informationally efficient”, past performances do not necessarily predict future performances, meaning that the actual number might differ from the predicted value.
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