Forex Daily Podcast - Wednesday, December 21, 2005

Our EUR trade got stopped out yesterday for a 20 pip loss. The EUR should be finished correcting and start trending down once again targeting the 1.1600 level and below. Short term it should correct yesterday's run down before moving lower. The EUR currently trades at 1.1867. The GBP moved exactly as we thought yesterday. Those of you who entered a trade up, should have been able to get 50 pips in a reasonably short amount of time. Hopefully, some of you turned around and sold the GBP. Currently either the correction is complete at 1.7590 or we are in wave b of a flat and the currency should run down to the 1.7523 level or slightly below before it's decision time. At this point the currency will either continue running lower or move impulsively up in wave c of a larger flat. If it moves up, look to trade down with a stop just above 1.7680. Let the trade get as close to this stop as possible. The GBP currently trades at 1.7569 The CHF should continue to run up. It may be in a correction for a bit as is the EUR and the GBP. The JPY ran up as we thought yesterday to the 117.35 level. With the currency at 117.21 right now you may consider trading down with a stop just above 117.31 level. we are getting to the right risk:reward levels to take the trade. We have been looking for another push down on the JPY, but since the correction got a bit complex, it's making the patterns unclear. The CAD ran up just as we thought yesterday. We were patient and got in at 1.1741. We moved our stop to 7 pips above the high and we are letting it run for a while. We dropped 1/2 our position at 1.1714 so we are break even on this trade in the worst case. I typically trade multiple lots so I can take profits along the way. 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