WARNING: This text is a word-for-word transcription of Mac’s daily forex trading video. That means the writing will reflect the way he speaks, if anything seems out of place, please refer to the forex video on the page.
All right, everyone. Well, we had just an amazing reversal across the board with these U.S. dollar pairs. Remember yesterday, I was talking about the U.S. dollar and about how we are in this critical area of support down around here, these are the December lows.
I’m not seeing the strength yet reflected in the futures contract. Let me refresh this now instead of waiting. On occasion, my data is back, see this is the second. I’m sure today, once my data gets refreshed, we will see that strength reflected over here on the U.S. dollar futures contract.
Now, just like I was talking about yesterday, we are not out of the woods yet. We need to see the U.S. dollar recover and get out of this overall zone right here, which runs up just above 80 on the dollar futures contract. Now, as far as the British pound is concerned, we do have a sneak attack like pattern over here. This is going from the low on the second, to the high over here today.
You can see the 1.272 area right there at 62.25. Sneak attack is disk six as well as in the coaching manual. We don’t really have much of a pattern over here. Remember, when you get into trending mode, you are not going to have the same type of patterns that we had in counter trend training mode. One of the things you should have noticed over the last six months is that we were consistently having lots and lots of compression patterns, lots of flags and pennants and triangles.
What we are probably going to see more now are false breakouts, double tops, double bottoms, things of that nature. We do have a resistance zone with the pound right about 64.50. We are going to have to watch no rope flag or pennant coming into the end of the day right here. Like I said, just a massive amount of volatility the upside, and then this big, big reversal here today.
So we are going to have to keep our powder dry, basically. Although we will have a possibility of catching a reversal trade down here if the market gets to 62.25. If it gets down there early in the session, I would actually bank on this momentum continuing. And so, taking a short position below that price would be a good idea at 62.41.
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