Jay Norris'  Instablog

Jay Norris
Send Message
Jay Norris is a 20-year CBOT floor veteran, author of the Best Seller "The Secret to Trading Forex, Futures, and ETFs: Risk Tolerance Threshold Theory", "Mastering the Currency Market", McGraw-Hill, 2009, and "Mastering Trade Selection and Management", McGraw-Hill,... More
My company:
Trading University
My blog:
Seeking Alpha
My book:
The Secret to Trading Forex, Futures, and ETF's: Risk Tolerance Threshold
  • Mid-Week Forex & Futures Forecast For Wednesday, 1-23-13 0 comments
    Jan 22, 2013 6:09 PM

    EURUSD continues its holding pattern between 1.3260 and 1.3400. What is most impressive about this pair is how it has only retraced the Jan 10 ECB Press Conference rally by barely 1/3rd. Such a shallow retracement, particularly in the face of a decidedly weaker GBPUSD last week, is definitely a sign of strength, as is Tuesday's much stronger than expected ZEW Economic Sentiment readings. It has been some time since German or European data has surprised on the upside. We still like the upside in Euro with a near-term target of 1.3500. The Risk Tolerance Threshold Ratio for EURUSD remains decidedly bullish - see Figure 1.

    Figure 1. EURUSD Threshold Ratio

    AUDUSD came to life on Tuesday after having rested up the previous week. The Aussie continues its repetitive pattern of a rally followed by sideways consolidation on its weekly, daily and 4-hour charts. This sturdy pattern often portends an upside break-out which we see as more likely given the absence of no pressing negative news on the macro front. While the Australian economy is not growing as much as the RBA would like higher interest rates and great demographics insure that sovereign funds and other institutions will continue to accumulate Aussie debt. The Risk Tolerance Threshold Ratio for AUDUSD remains solidly bullish.

    Figure 2. AUDUSD Threshold Ratio

    To see Jay Norris highlight trade set-ups and signals in live markets go to: Live Market Analysis

    Trading involves risk of loss and is not suitable for all investors

Back To Jay Norris' Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.