Hi, Happy New Year to you all. I havent traded for the last 10 days so I am feeling a little rusty! When I have been away from the markets and especially after the Christmas break when all the big traders have been away, I like to ease myself back into my forex trading. I have advised my forex mentor pro members to either sit out tomorrow or at the least wait for the London open.

When the big traders have been away often price breaks through strong previous areas of support and resistance. The big guys get back and think “what the ***….” & promptly drive it back down again. The $/Yen could be a classic example of this.

This is a huge news week which starts unusually with a Sunday speech by Mr Bernanke. This alone could have a huge effect at the market open. I Strongly suspect that there will be lots of gaps at the market open tonight. Gaps normally close, but after a big Christmas break ANYTHING can happen. Then throughout the week there is big news every day, culminating in the news of the month, NFP Friday.

Forum News

I have been so busy with the mentoring site that the forum has been left to drift. Apologies for that BUT I have managed to recruit the services of a couple of semi retired forex veteran traders, Jay & Julie Hawk. Between them they have over 25 years of trading forex at the highest level for major banks & financial institutions. Since retiring from the trenches they have been regular feature writers for lots of financial newservices, including Reuters.  They have agreed to be regular contributors to the forum for me. They will post articles of interest for you as well as have an “ask the experts” section. They will also do an honest, independent review of at least one new forex product per month, they are currently testing forex mutant & will post their thoughts at the end of January. This will, as usual, be free.

If you are a member of the forum & haven’t visited for a while then look out for updates. If you haven’t already joined then just go the link at the top of the page. Jay & Julie are looking to start in a weeks time. I have never known a situation where experienced pros would get involved in something like this, unless they are promoting something.  They are not. I will post their detailed resúmes later in the week.

The forex week ahead.

I have done some analysis for tomorrow, but to be honest the last 2 weeks data is unreliable due to the thin markets & therefore  I am not going to pin too much faith on it.  I will do a more detailed than normal update tomorrow in the members area when we have had the chance for a clearer picture. Lots of pairs are at 200emas/ support & resistance areas. We need to know if these will hold & therefore price will bounce off or a better indication for us will be if we get confirmed break outs.

I show you in the video how unclear things are on most of the pairs. I also show how the more adventurous among you may look to trade bounces off a number of pairs including the Gbp/$. Remember if you do decide to trade “bounces” that you need to halve your stake, especially if the bounce is counter trend – all explained in the “money management” article that has now been posted in the M1 section of the forex strategies page.

M1 method: If there is little movement in the asian session ( I doubt it, but you never know then look for break outs and pullbacks as per the normal rules.

LMT: I can see no daily signals lining up (check your own platforms). Again the safest way is to leave until at least tomorrow. Lots of the pairs have moved sideways over the holiday period, therefore we need to wait for a trend to return. Others like the Yens look to have reversed, BUT that may all change tomorrow. Remember: If in doubt STAY OUT

Euro/$: Has been moving sideways between 1.4450 & 1.4250 for over two weeks. Wait for a break out pullback of these areas.

Gbp/$: Also range bound, BUT I show you in the video how the more adventurous amongst you may consider a short/bounce of the 1.6220/ 1.6250 area. Its not for me, but is certainly a better proposition than the Euro due to multiple emas being in this area.

Euro/Gbp: Sat on a daily trend line again that has been spiked,……To see more of my detailed analysis and to receive DAILY analysis like this, consider joining my ridiculously low cost forex mentoring service, currently only $29.95 a month. More details here

To view full screen click on the You Tube icon, bottom right of the screen. PLEASE rate the video/leave a comment. Best wishes for a profitable 2010, marc

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