Week of August 1, 2008-American Session

Today’s non farm payroll report came in with a better than expected headline number of -57k versus -75k expected, plus slight upward revisons to last months report. However, the US dollar failed to sustain the intraday gains and currently trades within the 1.5550-1.5580 zone which essentially limited price action during most of today’s European sesssion. The two hour chart is beginning to suggest a short term bottom in place around 1.5535 as prices should not close below this level on a 2 hour basis in the nearterm. Similarly, USDCHF has a topping formation evident on the 2 hour chart as prices should not close on a 2 hour basis above 1.0495, while elsewhere the CHF crosses have made broad gains today. It is with this outlook that we believe the USDCHF has topped ahead of 1.0500 in the nearterm and should move lower in the next few days with the 2 hour 55 EMA at 1.0385 as our initial target. A sustained break here would target 1.0326 which is the 38.2% of the 1.0010-1.0521 rise.

As to trading, our service launched on April 29, 2008 as a few days prior to our launch the EURUSD reached an all time high on April 22, 2008 at 1.6017. Subsequently, the EURUSD begain a multi-week corrective phase lower reaching lows of 1.5283 and most recently 1.5302 on June 16, 2008. It was during the corrective phase that we were witnessing multiday trends unfold which provided a trend friendly trading environment favorable to our strategy and subsequently our results were very good during this trend friendly period. While our July results were good, they did fall short of our expectations as we can only take what the market provides, and for a better part of July, there was higher than normal risk evident in the market as volatility was a bit more extreme and price action much more whipsaw than what we had witnessed in prior months. Additionally, much of the world is enjoying summer break and volume tends to lighten up during the mid summer which will contribute to extreme volatility. However, our service continues to provide consistent profits with a total 4,376 pips gained since April 29, 2008 as we expect favorable trade opportunities to contine to unfold in the weeks ahead. Our goals here at Forex Signals Plus are to provide quality delivery of consistently successful trade recommendations to our valued clients, so, it is with this thought in mind that we here at Forex Signals Plus will soon be enhancing our service in our efforts to provide a more timely delivery of our trade recommendations so as to further our efforts to provide our valued customers with the best signal service available by our professional traders here at Forex Signals Plus.