What Is FX: Quiet Day=Ranging Conditions
Restored from the Empower Network archive (2011–2017), lightly edited to meet our current advertising standards. Views are the original author’s.
What is FX Daily Report
What Is FX: No Data On The US Docket
March 12, 2012
8:30 AM EST
Good morning What Is FX traders; Welcome to the new week. Trading started off rather slowly and What Is FX thinks that may continue. There was very little data since last Friday, and virtually none on the US calendar today.
The only real item that What IS FX feels is of note is the Chinese Import/Export figures, which were pretty bad. The trade deficit came in at -31.5B, one of the worst on the What Is FX record. Chinese Exports only came in at 18.4%, only half of what was forecast, while Imports grew again this month, continuing a multi-month trend, coming in at 39.6%
Some traders are reporting (and What Is FX concurs) that they won’t give much weight to the report given the Chinese New Year and the week long shut down of factories. But even adjusted for seasonal tendencies, this data still supports the theme of global economic slowdown.
For now the What Is FX euro/usd support is right around 1.31 is still intact, with bids seen just below that level. Dips to the 1.3075-85 level have been supported through Asian and early European dealing. It seems likely that the euro dollar will track equity movements in NY today.
With that in mind What Is FX wants to make note that the S&P seems poised to resume selling after a 3 day rise. But the rise stopped last week right at the 2011 yearly high, and also converging with the underside of a rising channel that began at the end of December. Equity futures are currently a bit in the negative, but nothing outstanding at this time to give us a decent direction.
The US Dollar on the other hand stands at another inflection point. It overcame a bearish candle set-up last week, but has risen to the top of its’ rising channel and is now blocked by some resistance. Nevertheless, a break above here would open the door for a further rise.
At this time, there is a bit more risk aversion in the air than not. Coupled with the strong labor news out of the US on Friday, the fact that a Greek default is off the table for now, but a Euro recession is likely in the cards, this should favor the USD some going forward.
The five minute trade on the NFP’s last week panned out quite nicely netting around 60 pips for those who got in. My personal trade ended up being 100 pips as i was in on an earlier set-up, that the NFP just reinforced. But we’ll only count 60 pips for our official tally.
What Is FX Daily Directions
The following paragraphs have been omitted by the editor, as they contain propreitary trading information reserved for our subscribers. Please visit The FX Trading Masters for your 90 day trial.
If for those interested, I have published a new report on a simple system for making triple digit gains in the silver market month after month. Please visit,www.CambridgeSociety.com for more details.
Happy Trading!
Bill
traderwillie8782@yahoo.com
facebook.com/TheFXTradingMasters
What Is FX March Results: +285.0 pips.
What Is FX Year-To-Date Results: +1,628.0 pips
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