February 2nd, 2010
By: Lisa
We have several indications of trades today, but we aren't going to place any of them. Wanna know why?
Our trading methods indicate potential shorts on EUR/USD, USD/JPY, and USD/CHF. Also, there are indications of potential longs on GBP/USD, USD/CAD, USD/JPY and EUR/USD.
The EUR/USD pair is showing indications of both a short and a long position, with some good bullish divergence. However, the general trend is still pushing down and neither the EUR or USD has fundimental reasons to change direction. If we were going to trade this, we would go short on a sell stop at 1.3850 with an initial stop loss at 1.4035. Our take profit would be at 1.3728.
The USD/JPY is still not showing much of a consistent trend. While the overall short term trend is in the upward direction, there is just too much indecision in the market, so we are staying away from this pair.
The USD/CHF may continue its recent reversal to the down side, but after a little profit taking, we think the pair will continue on the upswing. We are staying out of this trade because the hammer pattern over the last 24 hours shows there is a potential reversal of the downtrend over the past two days.
Finally, the GBP/USD is showing a potential long, but the overall trend over the past week or so has been a solid downward direction. Fundamentally there is no reason that the pair should reverse, and we believe it will continue moving down. We are going to wait on this trade as well.
So, even with all the indications, we don't feel strongly about placing any trades today. Check back tomorrow to see how our picks make out!
IMPORTANT NOTE: These are not Forex picks nor Forex recommendations. This information is provided for educational and informational purposes only. Use this information at your own risk. You MUST apply your own trading methods and your own opinions to an Angel Pair Pick to determine if a trade should be considered. Also, you do not need to trade all of the Angel Pair Pick pairs, nor should you. There's no need to place more than a few trades on any given day and our recommendation is when you get to 6 open positions, don't add any more trades until one of them is closed out.
Note: Forex, futures, stock, and options trading is not appropriate for everyone. There is a substantial risk of loss associated with trading these markets. Losses can and will occur. No system or methodology has ever been developed that can guarantee profits or ensure freedom from losses. No representation or implication is being made that using Angel Pair Picks will generate profits or ensure freedom from losses.
