Forex Daily Podcast - Friday, January 27, 2006

Hopefully you were able to catch the move down on the EUR or GBP yesterday or up on the CHF. Since the EUR and GBP typically move together and the CHF opposite you can trade these other currencies based on your interpretation of the EUR most of the time. We find Elliott wave theory so powerful in that we knew the key level yesterday was 1.2234 on the EUR. If it broke that level then we were not going up immediately. This allows you to get very tight stops. It also allows you to know the short term direction of the market because if we weren't going up immediately then we knew we would be looking for trades down. Hopefully, you were able to grab 30, 50 or even more pips yesterday. Today the EUR looks like it completed a 3 wave move down or very nearly so. It may have one more push slightly lower before correcting upwards or moving upwards. This leads to multiple valid paths from this point so we will wait patiently for the market to further reveal itself. The EUR currently trades at 1.2175 The GBP currently trades at 1.7767. The CHF currently trades at 1.2751. The JPY hit 116.91 overnight which is just shy of the 117 initial target we stated in our Jan 11 podcast. The JPY trades at 116.81 The CAD currently trades at 1.1467. 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