The Times, They Are A Rangin'...

Sorry for the Bob Dylan reference, but it seems to sum up the Forex market today. Not much happened... no signals were generated by the Forex Profit Monster trading system on the 1 Hour chart. Actually there was a signal that could've been taken on the USD/JPY pair, but because the Fast Trend indicator had already changed to red before the Slow Trend indicator crossed up, I didn't take the trade as this is a sign of a ranging pair and a riskier trade. Some 4 Hour trades that would've been taken a few days ago closed out for healthy profits (300+ pips), but because I didn't trade any of them on my live account, I won't be posting the results here.

Big news tomorrow on the Pound and the U.S. Dollar is probably causing the ranging to continue. Both economic reports have to do with housing, and as we all know the housing and mortgage crises are causing some real volatility in the markets and will probably continue to do so for some time. After the U.S. news is released at 10:00 am we may see some heavy trading into Wednesday as Wednesday is a relatively slow news day. Thursday brings the Pound interest rate decision, and both the European Central Bank's Trichet and the U.S. Federal Reserve Chairman Ben Bernanke are scheduled to speak, so look for another risky day on Thursday. I expect some ranging on the major pairs until the Pound interest statement, followed by some possible wild volatility depending on what is said by Trichet and Bernanke. Thursday is a day I will probably be taking off.

This is one of those times that it takes some real trading discipline to not go looking for trades just so you can be in a trade. It took me a long time to learn this, but it's still tempting to try and jump in when you see so many pairs in a tight range just waiting to break out!!!

That's it for today... if you'd like more information about the Forex Profit Monster trading system, you'll find it on my website at http://www.forexprofitmonster.com/.

Best of luck and may many pips flow into your brokerage account!

Jim
http://www.forexprofitmonster.com/