Wed, 10 Sep 2008
by Johan Kriek (jkriek@fxinstructor.com)

I see the CHF is finding significant support at 1.1230 which is the violated broadening formation’s upper resistance line, now support. Although the probability is bearish, I would wait for price to trend below the previous lows to confirm a bearish trading condition within this probability. It’s all about market rhythm now, if it trends lower you will have a suitable context to execute your trading system within

The EUR is still situated within a bearish probability due to the fact that we cannot identify a new bullish 60minute trend yet (the bearish 60minute trend has to be violated to the upside first)

Nevertheless, risk to the upside prevails and therefore the no trade zone

The Cable is situated in a bullish trading condition al of a sudden due to the fact that the previous bearish 60minute trend has been violated to the upside and confirmed. As long as market rhythm trends higher the condition will prevail. Expect significant resistance at 1.7670 and 1.7785.

Keep an eye on price movement. Any signs of a bearish cross on the 1 hour stochastic will plunge the GBP in a no trade zone.

107.40 is once again the level to watch on the JPY as it resembles a confluence of resistances now – violated Major Trend Support (now resistance) and bearish 60minute trend resistance line.

As soon as the 1 hour stochastic gives you a bearish cross, a bearish trading condition will present itself

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On the economic front, watch the UK Trade Balance as it can change the direction of highest probability in an instant. If you are patient to wait for the best trade today it will pay off generously

Have a great trading day!