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New York Open
Commentary, trade ideas, biases for the retail trader
28 Sep 2009 10:57:33 AM (GMT)  
by Ture Johnson (Ex-Interbank Trader & Hedge Fund Manager)  
 
1.0 New York Open

1.1
EUR/USD Overview
Todays bias is higher but it wont take much to turn it back down. If the Euro is to continue higher, then early morning weakness should hold above 1.4593. Buy ahead of here with stops below 1.4575. The next swing higher should reach 1.4690. If the Euro rallies first before declining, then sell short ahead of 1.4690 with a stop at 1.4715. A move above 1.4715 opens the door for a rally to 1.4790.

1.2 GBP/USD Overview
Todays bias is sideways to higher, Buy early morning weakness any time below 1.5825 with a stop at 1.5797. The 1.5800 level is key support on the day. Below 1.5800, then Sterling could drop 100 pips quickly so go short at 1.5797 with tight stop. As long as 1.5800 is holding, the next leg higher will reach 1.5980.

1.3 USD/CHF Overview
Todays bias is mixed to down. Resistance lies at 1.0360. Sell ahead of here with stops at 1.0372. The dollar should grind lower to 1.0300. Key support on the day is pegged at 1.0260. If the dollar sells off first to 1.0275 or lower, buy it with a stop at 1.0255.

1.4 EUR/JPY Overview
Todays bias is sideways to higher. Resistance lies at 131.06 and then key resistance on the day is pegged at 131.86. Support comes in at 130.37.

1.5 GBP/JPY Overview
Topdays bias is sideways at the moment. Support lies at 140.97 and then key on the day is pegged at 140.33. Resistance lies at 142.50. A break of 142.50 confirms a move to 144.40. Buy 142.60 with a stop at 142.18.

1.6 USD/JPY Overview
Todays bis is sideways. Key support is pegged all the way down at 88.69. Buy early morning weakness below 89.10 with stops below 88.69. The next leg higher should reach 90.30. Below 88.69, then a drop to 88.05.


2.0 New York Close Market Data

2.1 Hourly average Range in pips (EST format)
 

Pair

 1-2am   2-3am   3-4am   4-5am   5-6am   6-7am   7-8am   8-9am   9-10am   10-11am   11-12pm   12-1pm   1-2pm 
EUR/USD 18 35 31 26 23 20 20 35 45 43 34 28 27
GBP/USD 37 50 54 59 40 30 27 43 53 63 46 40 26
USD/JPY 20 31 29 21 21 23 19 25 28 40 25 18 18
EUR/JPY 30 43 39 39 27 27 24 32 36 46 34 22 24
GBP/JPY 46 52 60 54 43 46 34 46 42 76 44 33 28

Figure 1
 

2.2 Figure 1 explained
The table above shows the average range in pips for the hour based on Eastern Standard Time. The average used is of the past 10 days. The cells in red are the hours with the highest range for those shown. This shows which hours offer the most profit potential. It also aids in the trade decision process by knowing what the current hour’s range is in relation to its’ average range. If a buy is signalled but the average hourly range is met, then caution should be used with the trade.

 

2.3 Key levels for today's trading day (London/New York times)

Pair Current Level London Open Daily Pivot R1 R2 S1 S2 Average Range
EUR/USD 1.4635  1.4594   1.4627   1.4691   1.4788   1.4529   1.4465   122/117 
GBP/USD 1.5857  1.5802   1.5871   1.5976   1.6141   1.5698   1.5594   195/178 
USD/JPY 89.37  89.22   89.40   90.58   91.23   88.04   86.87   123/105 
EUR/JPY 130.80  130.17   131.06   132.33   134.49   128.91   127.64   138/132 
GBP/JPY 141.73  140.97   142.00   144.29   147.50   138.68   136.39   235/194 

Figure 2    
 

2.4 Figure 2 explained

Current Level
This is where the market is at the time of writing.

London Open
This is the price at 2am New York time.

Daily Pivot
This is calculated by the previous days (H + L + C)/3 based on a 24 hour day from 2am to 2am New York Time.

R1, R2, S1 and S2
The daily pivot points based on using the previous explanations calculation.

Average Range
The first number is the 10-day average daily range and the second number is a 10-day average of the average—this shows whether or not the daily range is expanding or contracting. If the background color is red, it means the average daily range is contracting, if its green, it means it is expanding. The average daily range can aid in the decision to take a trade or not. If a buy signal is given at or near the high of the day but the average daily range has been met or exceeded, then caution should be used in entering the buy.

Color Codes
If the background color is  green , then the current price is above referenced number and if the background color is  red , then the current price is below the referenced number. Use the London Open and Daily pivot to determine the daily bias—if background is green in both, then the daily bias is to higher prices. If one is red and the other green, then the daily bias is neutral. If both are green, and the R1 cell is red, then use R1 as first daily target. If R1 is green as well and R2 is red, then use R2 as the daily target. Reverse the guidelines for the short side.

 
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