12-year old Victoria Grant reveals why her homeland, Canada, and most of the world, is in debt. Does this adorable child know more about one of the most important truths in the world than you?

Listen to her six minute speech where is articulates well the problem with the worlds debt based monetary system that is controlled by private bankers and how it enslaves the people of the world.

I don’t think she learned this stuff in school and she understands what she is saying, notice she doesn’t need a teleprompter.

The bottom line: the fractional reserve banking system is deliberately designed by and for the benefit of the elites to control people and these criminal institutions are responsible for oppression and mass suffering.

The only way for us to achieve freedom is through awareness to the truth and this little girl is providing a light in the darkness.

After watching please share your thoughts and comments about this heroic girl and her views.
(click through to the webpage if you received this by email)

The event calendar is full for the Australian dollar and Japanese yen today. First out of Japan we have Current Account balances, followed by the Employment Change and Unemployment Rate out of Australia and then Trade Balance from China which directly effects the AUD.

We will see movement on the AUD/JPY

Let’s take a look first at the weekly chart to gain a greater perspective of what’s going on.

Now dropping down to a lower time frame let’s take a look at the pair on the 1 hour.

As we can see from the weekly chart the AUD/JPY is currently in a steep down trend. That is why to wait for the to see if we receive a break of the first buy level for confirmation of a possible trend reversal. Secondly, if the pair breaks the resistance area I will then wait for a test of the resistance to see if it acts as support before adding to the position.

This video on technical analysis is a tutorial lecture from top trader Linda Raschke who was featured in the infamous New Market Wizards.

Some of the topics discussed in this hour long lecture are:

• Why traders must know support and resistance levels.
• The importance of viewing multi time frames.
• Chart patterns.

• Head and shoulders
• Triangles
• Gaps and the importance of gap opening that don’t fill
• Reversal patterns and continuation patterns.

• How price leads and indicators are lagging.

Topics also covered are important aspects for traders such as trade management, why to use a stop loss, and how to stop taking profits too soon and stay in a trade are discussed. Also, the importance of having a trading plan before the day starts even if you are a day trader or scalping.

Learn the ability to move onto the next trade and the ability to take a big loss and resume trading.

• Don’t over trade, not frequency of trading but leverage.
• Don’t average into a loss. Scalping into the direction of your trade is okay.
• Your goal is to see and take the trade yourself. Learn to be an independent trader.
• Use a higher time frame as a filter.

This long entry in the aud/usd is the same setup being taken on the eur/usd at the moment but in the opposite direction.

Again, on the daily chart I saw price at resistance followed by a slight rejection, it is too soon to tell but this did offer an opportunity for a good low risk, high reward trade setup.

Waiting for a 15m candle to close before taking long trade:

There is a good chance by the close of the New York session these trades could be stopped out unless momentum turns enough to carry through into the Asian opening.

The short trades initiated yesterday on the eur/aud were both stopped out at break-even as the near term trend turned over night. Price has since retraced all the way up to the resistance near the 1.2850 level and a new short trade has been taken.

On the daily chart I saw price at resistance followed by  a slight rejection, it is too soon to tell but this did offer an opportunity for a good low risk, high reward trade setup.

I waited for a 15m candle to close before taking a new short trade:

Anytime you are entering a trade at resistance it is against the immediate trend in place but the trade is offering a low risk to high reward situation. I am taking the same trade currently in the opposite direction on the aud/usd.

Let’s first take a look at the longer term analysis for the eur/aud by looking at a chart of the weekly time frame.

Dropping down to the daily time frame:

This week Australia unexpectedly cut the key rate by half a point (view the full RBA statement) and the cut has places downward pressure on the AUD. Traders speculated such an unexpected cut would had sent the pair to lower levels however.

While the EUR has maintained itself unexpectedly above the 1.3000 level against the USD lately the ECB is running out of weapons as it battles the EU crisis.

Technically speaking we have strong resistance at the 1.29500 level on the aud/usd along with the failed attempt to take out the 1.28814 high. I have taking two short positons with my eye first on the on the 1.25950 area for profit taking. If we have an unexpected strong break out that level then I will be looking for a test of the yearly low.

The aud/usd brook above the one month resistance level of 1.0400 which has three times provided as a rejection point.

Above this level even if you were bearish on the pair all month you need to do look to buy. How do you get in though now that it is has broke straight through this level and is currently trading 70 pips higher?

Broken support becomes resistance and broken resistance becomes support

In order to get long you do not want to chase after price. If you were waiting for the break above resistance to become bullish on the pair and missed you now want to be patient. The first entry to watch for is a test of the breakout level which should now be support.

Two way to enter this trade on a test of the breakout level

1. You can place an order just above the old resistance level somewhere in between 1.0400 -10 with a stop loss under the level WITH enough room for price to spike through and back above.

2. You can wait for price to test the 1.0400 level and then dropping down to a 5 minute chart wait for price to make a new high than the previous high with a stop loss at the low of the previous price bar. This entry is more exact and with less initial risk, although the first resumption of the trend might not make it and in that case you take on additional risk on following attempts.

The first entry is more suitable for those who are not able to be watching price as closely and also provides for a better chance at getting into the trade as price often spikes down quickly to test the breakout level and spikes back up just as quickly.

The BOJ is holding a press conference on Friday and the speculation is that they are likely to ease monetary policy.

In these days we cannot be too careful what we read in the press as it seems central banks are becoming master of market intervention through monetary policy as well manipulation through well timed press releases.

Why the Yen is the weakest currency in the briefest summery

However, the case that the yen is overvalued and due for a monumental correction is only growing stronger, in my opinion. The rationale is simple: Japan’s debt problem is perhaps the biggest in the world – bigger than the eurozone, the U.K., and the U.S.

To further put things in perspective, Japan is running twin deficits: Both a budget deficit and a trade deficit – the latter of which reached a record high as Japan’s energy imports grew due to the Fukushima disaster. - The Collapse Of The Yen

Plays on JPY  weakness

Opportunity, both long term and short term lie in short Yen positions among them the leaders should be: USD/JPY, GBP/JPY, and AUD/JPY.

I am positioning to try to get into a few short JPY positions ahead of the meeting so potentially profit could be locked in ahead of the press conference as there is no way of telling how the market will react, however, I expect Yen weakness if the monetary policy of the BOJ leans towards further easing.

Of course the FOMC statement on Wednesday could change anything so the plan is to get into winning positions ahead of the meeting, then either extend those gains into Friday’s BOJ press conference or if the FOMC cancels out trades initiated today, then to play the market reaction from the FOMC as an opportunity to gain even better positioning JPY crosses for the BOJ release on Friday.

Hey Jordan,

I was top of my class when we first started the 4x. I got it faster than the rest, I was working on the 3 step triple play within the first year, I knew there was something to that in the system,  but being a self made business person all my life means that I am programed to take risk. Your greatest gift to me is you famous line — I know nothing.

As a trader the most important mantra you can remember is “I know nothing” and that is the mentality you need to maintain. I am not smarter than the markets and I cannot figure them out. But through proper trade management and especially money management I am able to consistently profit from the markets while making sure to remain humble so that I am not humbled by the markets themselves.

Now, I am watching as you ready yourself to compete. How you can pick yourself up and pull it together and get back in the game with the right mindset is once again beyond my current abilities. I will be part of it because I believe but I can not tell you how valuable to me your ea is. It muddles along in survival mode just waiting for the 30% of the time the market is in trends. It gets up on time an makes the trade long after I would have fallen apart. wow what a gift.

This means I have to many emotions attached to my trading and I would fall apart if I invested in the suicide account. But once again you came up with the solution take 100% out when you first can.

I will do that but deep down inside I think working in 3′s is somehow the key. What if you apply 2 more withdraws to that system? Were would they fit?

Anyway just thinking out loud.

Forextreeguy

Here is what is on my radar for this week. Starting with tonight is the AUD CPI data which is largely determine if the expected rate cut comes through from the RBA (Reserve Bank of Australia). Higher than expected readings would most likely cause a bullish reaction however because of the lower than expected PBI data released yesterday out if AUS this is unlikely.

Bond Auction

Another possibly market mover is the surprise 3 & 6 year auction out of Spain tomorrow.

FOMC Statement on Wednesday

Unless the Fed comes out with strong language regarding the readiness for further QE there should not be a market moving effect. Again, the possible surprise would lead to a weak US dollar and risk on.

Further reading on the FOMC meetings and expected Analysts opinions: read more

BOJ Expected to Ease

This could be a nice play for all JPY crosses which should be weak in response (long term trades here) and especially the USD/JPY pair.

Summery

Pressure has been on all risk assets with a bias towards the us dollar, however, because of the sickening US fundamentals there is still large caution about the USD being a current flight to safety. There are no favorable currencies at the moment and it looks like JPY is about to become the least favorite. I believe only a full scale crisis will cause the USD to attract a large amount of buying and it seems as if the EUR is being held about the 1.3000 by a lot of hands, most likely for political stability.