Forex Trading - Live Forex Opportunities For Profit in the Yen and Canadian Dollar

 Its Friday 9.30pm Central European time and I want to share with you a couple of trading opportunities which could make big gains of several hundred pips each so here they are.

The reason these trades look so attractive is the risk / reward - even if you are wrong the risk is low and they are based on both fundamental and technical inputs. Both are based on the dollar trend has turned up and the two currencies outlined below are rallying against it and the rallies look to be running out of steam.

You can use any free chart service which has the following indicators printed - stochastic, RSI and Bollinger Bands. If you don't know how to use these indicators then check our other articles and study them and you will soon see how to use them and how useful they are.

Pull up a daily chart and we will begin.

The Dollar V Japanese Yen

Notice how the dollar has pulled back toward the 108.00 level and has bounced to the 109.00 level and is just at the mid Bollinger Band. If it can get above the mid Bollinger band supported by momentum on the RSI and stochastic, we would expect further strength. RSI is up and the stochastic lines are poised to cross to the upside - wait for them to do so and watch for further strength.

This looks an excellent trade in terms of:

- We are so close to strong support and have bounced. - The fundamentals show the Japanese economy on the verge of recession and they can't cut interest rates. The U.S economy meanwhile, is recovering and rates are on the way up - leaving plenty of downside for the yen.

The Dollar v Canadian Dollar

Notice on this chart we have rallied back to the 0.96 level and the stochastic and RSI are up but the RSI is rolling over to the downside, on the stochastic has the fast line ahead of the slow line showing a move that has moved to far too quickly. This is an indication of possible weakness in price coming. The signal will be when the stochastic lines cross to the downside, with a right had hook and are pointing down.

We would expect the rally to falter around now and a shorting opportunity to present itself and target chart lows.

The Key When Trading

Is not to predict or jump in to soon always let price momentum be in your favour before considering any trade. Even if these trades are wrong, we still think the odds favour our view and the risk to reward is very good. Check them out and see what you think of them.

These trades should be proved right or wrong within the next few days and we think our view is soundly based but we shall see! Good luck and good trading.

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Forex Trading - Live Forex Opportunities For Profit in the Yen and Canadian Dollar by KELLY PRICE

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