How to make money with forex trading

EUR/USD – Tried to break above resistance at 131.35 yesterday, but failed. That doesn’t mean that the top is in place, but the possibility has gone up considerably. Yesterdays candle was as close to a “Gravestone” candle as you get them, this is normally a topping candle, but it needs confirmation today in form of a red candle and the bigger the better.

Resistance is at 131.35; 132.45 and 133.35, while we have support at 130.30 and 129.30 a break below the later will add confidence to a possible top being in place yesterday and call for a new decline towards strong support in the 125.50 – 126.45 area. USD/JPY – I’m disappointed, that we have moved back below the long term falling trend line. That does leave the impression of a failure break, but as long as we don’t break below support at 76.55. A break below support at 76.55 will leave us with no other possibility, than a decline back below 75.57 towards 74.00.

This is not my preferred scenario, which is a break above resistance at 78.35 and more importantly 78.85, which should open up the upside for a continuation towards 82.50 as first target.GBP/USD – Tested resistance yesterday. We could see the retracement from 152.33 move higher towards 158.60, but I would not at all be surprised if resistance at 157.45 protects the upside for a break below 155.30 calling for the next powerful decline below 152.33.

Wave ii of 3 has clearly become an expanded flat, where wave “b” was 1.382 time wave “a” and wave “c” is 1.618 time wave “a” and at the same time we are testing the top of red wave iv of one lessor degree.USD/CAD – Almost made it to the support I mentioned yesterday. At the same time we can see the fighting with the mid-point of the falling channel, which has formed since late November 2011. It’s way to early to call for a bottom. We could easily see a firmer test of support at 99.56 and possibly even a decline towards 98.88, before a bottom is in place.EUR/JPY – The Elliott wave count shown is my preferred count for this cross. I do think we are very close to a bottom, but we need more evidence in form of a break above the minor resistance line at 105.50. That said I still think, the risk/reward buying EUR and shorting JPY within the 99.00 – 100.00 area is well worth taking, with a stop just below 97.00.

EUR/CHF – Is just above the floor, that the Swiss central bank (SNB) has defined at 120.00. I would not hesitate one second taking a long EUR short CHF position here. The former head of the Swiss central bank, Hildebrandt, was forced to leave his position, but I’m sure that hasn’t changed the position of the board and they will defend the floor viciously. Therefore this is a very low risk high reward possibility, with a stop placed just below 120 say 119.50.

Longer term I looking for a rally higher towards the 128 – 129 area.

One final thing. I do like TRY very much right now. We have already seen a major double top activated in EUR/TRY (see my post here:

http://theelliottwavesufer.blogspot.com/2012/01/elliott-wave-analysis-on-eurtry.html)
In TRY/JPY we might soon see a double bottom activated (see my post here: http://theelliottwavesufer.blogspot.com/2012/01/elliott-wave-analysis-on-tryjpy.html)
CHF/TRY should also represent nice opportunities. I haven’t done any analysis on this cross, but if the CHF will weaken from EUR/CHF 120 and I think EUR/TRY will drop to the 221 area, then CHF/TRY should do very well.

Remember that the interest rate in favor of TRY alone makes these crosses attractive and now that the trend is in favor of TRY too these crosses are very attractive

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