Forex Daily Podcast - Tuesday, Feb 14, 2006

The JPY moved down yesterday as expected for over 100 pips. This is a good example of an impulsive move. This provides the entry we were looking for with a stop just below last Friday's 116.88 low. We are looking for 200 pips on the upside so this provides us with a better than 1:4 risk:reward ratio. Remember, you need to be able to capture at least 2 times the winnings that your risk. The EUR, GBP, and CHF all corrected against the strong dollar move. We were hoping for a larger correction, but this may be all we get. We still favor a stronger USD. Our next target on the EUR is 1.1800. The EUR currently trades at 1.1905. Our next target on the GBP is 1.7250. The GBP currently trades at 1.7371. Our next target on the CHF is 1.3200. The CHF currently trades at 1.3077. The JPY has been moving beautifully, we are looking for this to be an impulsive move up for over 200 pips. When you can count 5 waves on the hour chart the impulsive move is done. There is always the possibility this could be a larger correction which would be a 3 wave move, so use good money management so a good trade won't become a bad trade. The JPY currently trades at 117.40 We'd still like to see one more push up on the CAD. The CAD currently trades at 1.1550. Forex Currency trading is very risky, please read the disclaimer on our web site. Visit us on the web at www.elliottexchange.com or at forex.podomatic.com. Good Luck and Good Trading