Forex Daily Podcast - Tuesday, February 7

We hope you caught that trade down on the JPY mentioned in yesterday's podcast. There were more than 160 pips of potential profit as the JPY ran into our 118-116 target range. We continue to favor a stronger USD and are looking for trades in the JPY, GBP, EUR, and CHF that correspond to this scenario. The EUR should correct down to near the 1.1943 low if not start another run down. If it only corrects lower, then we'll have a move back up to or past current levels. The problem with these making this type of trades is the poor risk:reward ratio as we don't have a good place for our stop. The only reasonable place for a stop is just above the current highs which will likely get taken out in a more complex correction. The EUR currently trades at 1.1990. This holds true for the GBP, it should correct back near the low or start another move down. The GBP currently trades at 1.7486. Same story for the CHF. it should correct higher or move higher. The CHF currently trades at 1.2971. The JPY's correction can be complete in terms of price, but we are short on time. Therefore, we are looking for it to move up to likely 118.50 or above. We'll have to evaluate the wave pattern as it unfolds beyond this. The JPY currently trades at 117.97. The CAD should continue to work lower to the 113 level or below, with the most immediate bearish case if the currency does not break the recent 1.1500 high. The CAD currently trades at 1.1471. 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