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ShadowTraderPro FX Trader for April 22, 2010 The ShadowTraderPro FX Trader is your daily companion to the foreign exchange markets. Each issue contains a look at an emerging currency trade setup from a technical perspective, along with selected news on the four major pairs and a full economic calendar specifically tailored to the Forex trader. The report also contains potential FX trade setups which are listed with defined entry, defined target and defined stop. Subscribers receive email confirmations and updates on these trades so that they can follow along. If you have any questions or comments regarding commentary or plays in this newsletter, please email to fxtrader@shadowtrader.net. To get the most out of your subscription, read our FX Trader User's Guide. Dollars & SenseGood evening Forex Traders. Despite Apple’s out performing expectations, equities could not rally today and in fact sold of potentially creating a lower high. The equity sell-off and renewed uncertainty over Greek debt drove money to the dollar and to gold prices as potential safe havens. The dollar was able to strengthen with gold while commodity prices also dipped, validating the move as a safe haven move. The EUR/USD dropped and hit our price target, another win for the stochastic system. Depending on when you set up your trade, you will have profited between $82 and $115.We are now watching for another system signal or a better price pattern trade.(see EUR/USD below) 
The GBP/USD rallied when the euro sold off again. Today, price was able to finish closing the gap and closed higher. This is a bullish sign for the pair. Our stop in the previous trade may have been slightly too tight, though it would have been suitable without the gap and drop. We still expect a pull back in this pair to give us a buy signal near support. We will watch for a system signal or a support bounce near 1.5250.(below). 
The CHF/JPY pulled back a little with the volatility bump during the day. We still like bull flag pattern. When price breaks the resistance near 88, we will look to buy this pair and play for a 660 pip move. We will also look to buy near 86 as a support bounce.(below). 
The EUR/CAD is retesting the multi-year support level. We still very much like this trade and it appears we are confirming the long term sentiment and the break of the trend. We are watching for an opportunity to add to this position.(see EUR/CAD below) 
Major Pair Scoop (Reuters) - The euro slid broadly, falling for a fifth straight session against the U.S. dollar on Wednesday, as investors fretted about delays in putting together a financial aid package for debt-stricken Greece. The country started talks with European Union and International Monetary Fund officials on Wednesday on a potential aid deal that could offer Greece 40 billion to 45 billion euros in loans, but it would take several weeks before any firm plan could be finalized. Greek Finance Minister George Papaconstantinou said a joint text will be agreed by May 15. "This seems to leave the markets in a state of balance between fear and optimism without a strong position on either side," said Dan Cook, senior market analyst at IG Markets in Chicago. "Sometimes the initial statements leaked (from these meetings) ... are unconfirmed or denied and market volatility may pick up." Bottom line, Cook said, the short-term downtrend that has been in place since April 14 is still intact but it may be limited on the downside by the longer-term range. In early afternoon New York trading, the euro EUR= dropped 0.3 percent to $1.3397, after having fallen as low as $1.3359, according to Reuters data, its lowest since April 9. The euro's slide came as the premium investors demand to buy Greek government bonds rather than euro zone benchmark Bunds widened beyond 500 basis points, the highest in 12 years, while the cost of insuring against a Greek default climbed to a record high. Worries about Greece boosted the safe-haven appeal of the dollar. The ICE Futures U.S. dollar index, which tracks the value of the greenback against a basket of six currencies .DXY, recovered from the day's low to trade 0.2 percent higher at 81.213. Greece is racing to raise 10 billion euros next month, with markets focusing on an 8.5 billion euro bond that falls due on May 19. Investors are increasingly convinced Greece will have to tap the euro zone and IMF package. "The situation is not getting any better and if anything, it seems that EU nations are rushing in order to head off a potential calamity on the 19th," said David Watt, senior currency strategist at RBC Capital Markets in Toronto. In other currencies, the Canadian dollar CAD=D3 rallied across the board, pushing the U.S. dollar as low as C$0.9931, its weakest since early June 2008. The greenback was last at C$0.9990, flat on the day. The Canadian currency extended its rally from Tuesday after the Bank of Canada signaled an interest rate rise may come as early as June. Rising commodity prices also provided a boost. Against the yen JPY=, the dollar was flat at 93.22. The low-yielding Japanese currency recovered from broad losses as the Greek debt crisis took center stage. It earlier came under pressure earlier as strong U.S. earnings lifted risk appetite. Apple Inc (AAPL.O) posted first quarter earnings on Tuesday that far exceeded expectations, while Goldman Sachs (GS.N) and Morgan Stanley (MS.N) also announced strong results. The Swedish crown EURSEK=D4 hit a 19-month high at 9.5850 per euro, extending its rally after Sweden's central bank on Tuesday cemented market expectations for a rise in interest rates in July or September. (Additional reporting by Wanfeng Zhou; Editing by James Dalgleish FX Economic CalendarUp and coming economic data relative to FX markets that may move markets this week.
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