October 8th 2012

TREND FOLLOWING
Risk Disclaimer: Forex trading is risky. See full Risk Disclosure at end of document. Currency Daily Trend H4 Trend Currency Daily Trend H4 Trend EURUSD GBPUSD 5 4 2 5 AUDUSD 5 2 USDJPY 2 2 NZDUSD 2 3 ES USDCAD 5 5 USDX USDCHF 5 3 EURJPY 4 2 EURGBP 4 5

Super Trends (Daily & H4 at Level 5)

10EMA Retest Candidates

Pairs exhibiting Super Trend behavior are shaded red above. Expect these pairs to continue in same direction, and aim to employ the ADR Exhaustion Technique if any pullback this week. Monitor the following pairs for possible Daily 10EMA retests in the near-term: AUDCAD, AUDCHF, EURAUD, AUDJPY, AUDUSD, GBPCHF, EURNZD, EURGBP

5 Strong 4 Strong Moderate 3 Moderate 2 Weak Moderate 1 - Weak

Review of Last Nights (Friday) Trades

Trade Signal Sell GBPUSD 1.6215 / SL 1.6240 / PT1 1.6190 / PT2 1.6150 / PT3 1.6100 Buy EURUSD 1.3000 / SL 1.2970 / PT1 1.3030 / PT2 1.3060 / PT3 1.3090 Sell AUDUSD 1.0280 / SL 1.0315 / PT1 1.0250 / PT2 1.0205 / PT3 1.0170 Sell USDCHF 0.9327 / SL .9360 / BE .9270 / TP .9217 Sell USDCAD 0.9820 / SL .9860 / BE .9750 / TP .9700

Result
Winner +3R. Trade triggered Friday and hit 3R target today in NY. Winner +2R. Trade triggered during Asia Thursday night and hit 2R target during NY session Friday. Did not trigger. Price came within 7 pips of entry, but never quite reached it. Did not trigger. Did not trigger.

Nightly Performance

+5R
* Results are based on furthest target hit before stop loss is hit.

www.fxevolve.com

STRATEGY FOR TONIGHT

General Comments
Bank holidays in the United States and Canada on Monday resulted in quiet markets across the board. GBP has weakened considerably and we are aiming to sell rallies in GBPUSD tonight. EURUSD is still bullish on the Daily timeframe, so these lows could be met with strong support, so the clearest play is to look for GBPUSD shorts tonight. AUDUSD has picked up some near-term bullish momentum off its lows from late last week, but it is now coming into heavy technical resistance.

Futures Commentary
USDX has moved back into range trading mode. We are watching for a break above 79.80 to signal strong bullish dollar momentum or a break below 79.40 to signal strong bearish dollar momentum. ES is completely rangebound now between 1470 and 1425. We will be monitoring this range for a break this week.

EURUSD Key Levels

1.2887 BS H4 23% Fib/Daily S2 1.2941 BS 38% H4 Fib/Monday Low (1.2934) 1.2955 Daily 10EMA 1.2970 Weekly Pivot 1.2985 50% H4 Fib/H4 10EMA/Daily Pivot (2975) 1.3007 BS 23% H1 Fib 1.3028 62% H4 Fib 1.3089 78% H4 Fib Trade Plan: EURUSD is facing significant resistance between 1.2985 and 1.3010. We are going to focus on GBPUSD for specific entries, but if you are looking to play EURUSD tonight, focus on the 1.2985-3000 area for shorts.

GBPUSD Key Levels

1.5985 Weekly S2/Daily S1 1.6020 Monday Lows 1.6065 BS 23% Daily Fib/H4 10EMA/Weekly S1/Daily Pivot/23% M15 Fib 1.6086 23% H4 Fib/38% M15 Fib 1.6100 Monthly Pivot/Daily R1 1.6109 Daily 10EMA 1.6128 38% H4 Fib/BS H4 TL Retest 1.6137 Weekly Pivot Trade Plan: GBP has weakened significantly over the last few trading sessions. Look to play into further GBP weakness by selling into rallies tonight. GBPUSD has broken below the 23% Daily Fib and closed convincingly below it. This will typically lead to continued movement down to the 38% Fib, which is down at 1.5910. Sell 1.6060 / SL 1.6090 / PT1 1.6030 / PT2 1.6000 / PT3 1.5930. If this trade is stopped out, the strength of the GBPUSD sell-off over the last few days is strong cause to sell the first rally into

www.fxevolve.com

1.6100. Sell 1.6095 / SL 1.6130 / PT1 1.6060 / PT2 1.6025 / PT3 1.6000

AUDUSD Key Levels

1.0151 Monthly S1/Daily S1 1.0185 Daily Pivot 1.0200 BS H1 Bearish TL Retest/H1 Bullish tL 1.0208 H4 10EMA 1.0245 Weekly Pivot 1.0260 Daily 10EMA/H4 23% Fib/Daily R2 1.0328 38% H4 Fib/H4 TL Trade Plan: AUDUSD is now ranging at the bottom of an extended sell-off. We are looking to sell rallies on AUDUSD. The 1.0265 area is incredibly strong technical resistance and it makes sense to sell at this level. IF AUDUSD is going to pick up any renewed selling pressure, there is high likelihood it will be off this level. Sell AUDUSD 1.0260 / SL 1.0295 / PT1 1.0225 / PT2 1.0190 / PT3 1.0155. If AUDUSD does not reach our sell zone and collapses, look for the 1.0200 area to provide strong support tonight.

Risk Disclaimer:
Online forex trading carries a high degree of risk to your capital and it is possible to lose your entire investment. Only speculate with money you can afford to lose. Forex trading may not be suitable for all investors, therefore ensure you fully understand the risks involved, and seek independent advice if necessary. Advisory: FX Evolve is a community where foreign exchange traders can come together to share ideas and trading strategies. FX Evolve provides economic and market information and analyses as an educational service, but does not give trading advice. Visitors are advised to carefully consider the opinions and analysis offered on FX Evolve in the context of the client or prospects individual analysis and decision making. Past performance is no guarantee of future results. Users are advised to carefully review all claims and representations made on this site before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this site is provided as general market commentary and does not constitute investment or trading advice. FX Evolve is not responsible for any losses sustained as a result of any reliance on the information contained herein. All parts of this trade plan are meant to serve an educational purpose and not meant to be interpreted as specific trading advice. Also, all trading results are hypothetical and meant to serve an educational purpose by exemplifying how trade plans can be built and how their outcomes can be both positive and negative. Therefore, the hypothetical trade results are not subject to slippage and other negative consequences that can result in a live trading account.

www.fxevolve.com

www.fxevolve.com