FOREX VIDEO - New York Session Review - February 23, 2010

A double dose of weak U.S. news reports hit financial markets during today's New York session. A 10-month low in the Conference Board's U.S. Consumer Confidence Index, coupled with news from the FDIC that their list of troubled banks grew by more than 25% during the last quarter of 2009, extended this week's Japanese yen rally against European and commodity currencies alike. Two hours later, the EUR/JPY currency pair was 110 pips lower.

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• fxbootcamp
• money
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• wehrley

[fxbootcamp]

Regarding the EUR/JPY news scalp: One additional point I want to make, which I neglected to mention in the video, is the reasoning behind shorting the EUR/JPY close to its daily S2 pivot point. Normally, a conservative trader would NEVER even consider shorting a currency pair at a level just 15 pips above its daily S2. In this circumstance — a surprisingly bad batch of U.S. news fueling an extension of the Japanese yens rally — it was much more reasonable to assume that S2 could break.

[WellWisha]

thanks for your insightful analysis curt! two thumbs up!

[asturius]

Great job Curt. Thanks again

[9jmorrison]

Thank you, on your thinking, but often I find the spreads eats most action.

[kjguest30]

Thanks Curt