IMPORTANT: This report is not an express or implied recommendation, guidance or proposal that any particular Forex analysis or trade is appropriate to the particular investment objectives, financial situation or particular needs of any recipient.

Please note: Members get a more detailed report with screenshots of all the chart set ups.

EUR/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.2143

Key G7 support levels: 1.2250, 1.2210/20, 1.2150

Counter-trend opportunities:

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal.

Today’s trade suggestion:

Lots of traders have been struggling through the tough market conditions over the past few months, but G7 has done well. This week we retain the bullish direction, despite calls from the newspapers for the euro’s imminent demise. There are some key levels below us, starting at the 1.2250 Fibonacci support, with the 786 support perhaps even more important below us at 1.2210/20. Watch and wait for dips before buying the euro after a

clear g7 entry signal. The target for rallies is 1.2450 to start with, and then 1.2600 later this week. If we fall below the weekly reversal level at 1.2150, the bullish scenario is put on ice!

Summary:

Buy dips to supports at 1.2250 or 1.2210/20 after a clear G7 signal. Short term target 1.2450 and then 1.2600

GBP/USD

Weekly Trend direction: Bullish

Weekly trend reversal level: 1.4220

Key G7 support levels: 1.4420, 1.4380, 1.4300

Counter-trend opportunities:

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal

Today’s trade suggestion:

Messy in extremis for over two weeks, as we see a potential bottoming process begin to unfold. We’ve had two weekly doji candles on the weekly 786 level and this means we are either bottoming or just “pausing” before another leg downwards. In any event, the G7 system remains long as we are above the weekly reversal level at 1.4220, and we’ll continue to buy into dips. As we have already dipped to two of these supports in the last few

hours, we may not get another signal for the next day or two. Watch and wait for a clear G7 signal before buying Sterling with eyes on 1.4600 and then 1.4850.

Summary:

Buy dips to supports after a clear entry signal. Target 1.4600 then 1.4850.

USD/JPY

Weekly Trend direction: Bullish

Weekly trend reversal level: 89.20

Key G7 support levels: 90.50, 90.20, 89.90

Counter-trend opportunities:

Strategy: Whilst above the weekly trend reversal level buy dips to support levels after an entry signal

Today’s trade suggestion:

Dragging itself higher every day, and just about holding above the top of the downward weekly trendline. The dollar is barely bullish whilst above the weekly reversal level at 89.20, and we’ll look to buy into dips to key support levels listed above. Be careful of key resistance levels overhead between 91.50 and 93.50. The huge “spike low” at the beginning of May is still going to have a marked influence over this pair during June. It’ll be interesting to see if the dollar tries to reach towards the magical 100 level in the coming weeks – perhaps with a

bit of “encouragement” from the Bank of Japan.

Summary:

Buy dips to 90.50 or 90.20/89.90 after a clear entry signal only. Target 91.40/50 and then perhaps 92-50-93.50

For live trading and to continue to receive this report visit www.forex-science.com

As seen from some earlier posts, last week was a particularly good week.  I took some different trades to to those already mentioned so I thought I would discuss them, showing my reasons for entry, and exit.  Both trades took place  I’ll discuss took place on Tuesday, 18 May; one was USDJPY and the other was EURUSD.  Both trades were short.

I’ll start with the USDJPY trade.  The Yen has been all over the place in recent weeks, and a lot of people have stayed away from trading it.  However, I saw a pretty good set up and entered the trade on the spike high doji candle.  There had been quite a few spike highs in the preceding hours and so that combined with an overbought stochastic and touches on the Bollinger bands was good enough for me.  The trade went along nicely, and there were two potential exit points. The first occurred after a few hours (trade was 50 pips up at this point).  There was a bullish candle, and whilst it was not a reversal candle, the stochastic was oversold at this stage, and with the Yen behaving as it had been, there was no shame in taking profit here.  However, if you had held the position, you would have bagged another 50 pips, with the exit point being the bullish candle which retraced more than half of the body of the preceding candle.  I however, closed at the first candle, mainly motivated by the profits I had going on the EURUSD trade which was running at the same time.

I got into this trade after the appearance of the dark cloud cover candle circled above.  The Euro had been on a one-way ticket down so although there hadn’t quite been a touch on the Bollinger Bands, the price action was at a resistance level and the stochastics were over bought.  In the next few hours the trade went beautifully, with the price dropping rapidly.  I set my targets on the previous low at 1.2231 (entry at 1.2408) for a profit of 177 pips.  My overall profit for the day was therefore 227 pips.  I stopped trading for the week at that point (I see no reason to give back my profits once I’ve made them), that’s why I am not including an analysis of the trades James reported.

If you haven’t yet registered for the $4,99 trial month with
James’s Charter Group then this is what you missed out on today,
and this is worth way more then a measly $4.99…

“Closed Eur and GBP for 137 pips combined. That makes
it 279 pips since yesterday’s live session, and 413 for the
month for me. Needless to say – I’m finished for May

See you live tomorrow.”

So go join now and get in on the action at
Monthly Charter Group Trial

These alerts were also sent out to members in a simple format with attachments of chart set ups…

“Trying small LONG Euro, at 2184, stop under the lows.

Target roughly 100 pips or the “black line” if it goes

mad.”

Due to the NFP later today, I won’t be trading until
next week.

I managed to get out of the euro trade at break-even
yesterday. Good thing, as the markets went crazy a
little later on.

Here is why:

http://edition.cnn.com/2010/BUSINESS/05/06/crash.245.dow.ft/index.html?hpt=T2

See you next week, and have a great weekend

www.forex-science.com

I’m not going to do a video report today, as there is
not a lot to point out. There will be time in the
trading session on Tuesday to fill you in.

In the meantime, I have attached two charts of the
current price of GBP and JPY.

JPY: Just an interesting setup in Asia last night -
not the right timing for me to be able to trade
it, but a perfect G7 trade in any event.

GBP: Watch for a second “spike low” on this hour
to confirm the first one – for a buy. Target 1.5320.

See you in the morning

James

If you missed the excellent Steve Nison Webinar last week, I’ve been able to get a recording for you: http://www.candlecharts.com/temp/nisoncandleprofits/ It’s well worth watching. If you are even remotely interested in trading with candles, this is a chance to get some tips from the GURU of candle stick charting