A very good day friends. We are happy to be back after a few days break to spend time with loved ones,and to take time out in order to prepare ahead and to serve you better. As posted some days ago,we advised to stand aside due to mixed signals and signs of up-coming volatility seen on some major pairs,because we know how the Big Dogs will try to scuttle things and take advantage of the market,to the detriment of the retail traders. As seen,Euro has continued its free fall that started about 9 weeks ago. And the fundamental news from EU and Germany,are worrisome and also from Mrs Yellen continuous stimulus reduction program. From the look of things,it seems 1200 Pips were not enough for the Big Dogs to start taking profits. As seen last friday and to the close of the market,they continued to exert more selling pressure on the EUR. My thought here is, will they be brave enough to take prices of EUR/USD down to 1.2300 - 1.2200 psychological levels,in the upcoming weeks? Well,technically,its not impossible. From observations,It can be noticed that this happens every two years,since the global crisis in 2008 began. So its possible to see 1.2200 - 1.12150 in this month of October or early November,from these levels a strong recovery should be expected. But from my candid observation and opinion,for now the EUR/USD is extremely bearish on majority of the time frames,like wise the USD/JPY being extremely bullish and on other correlated currencies. I expect some more slide early this week,due to their friday close. BUT PLEASE SELLERS of EUR/USD and BUYERS of USD/JPY and other correlated currencies should be extremely cautious,because from past experiences,they the (BIG PLAYERS),knows just when to suddenly change the game or trend as you may put it to their own advantage,leaving you behind to nurse your wounds(whip-saw or margin call). Please dont get us wrong,you can still buy or sell the pairs when its rallying ,but with a very minimal exposure of your equity,dont over leverage your account,because a sudden change of trend is at the corner. Our conclusion on this is that,we are on a strong buy levels on EUR/USD deeps and strong Sell levels on USD/JPY highs. More so,from my past experience,I trust the BOJ to act soon and sharply towards a stronger Yen,thank you and wishing you all a positive PIPSFULL week ahead from SERVICEFXNG.
Posted on: Sun, 05 Oct 2014 08:52:30 +0000
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