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Forex Trading

The dollar is improving on the better tone in the Fed statement

The FOMC notes a better economy with improved labor conditions cited.  They also removed a statement that business investment “has slowed” instead characterizing the business fixed investment as continuing to advance. They said that inflation may be effected by higher prices for oil and gas but the longer term inflation expectations remain stable. They said that the strains on the global financial markets have eased although they still pose risk.  So overall, a move toward a more favorable economic outlook. The Fed looks to keep the stimulus in place through late 2014.

The USDJPY has moved up to the 82.97 level. This is the 38.2% of the move down from the 2010 high. A break should trigger some stops.

USD/JPY Reaches 11 Month High

80.93 at time of writing

FOMC Decision awaited. Key levels to eye

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EURUSD sellers give up and the pair moves higher

As per the prior post, the EURUSD showed some signs of bottoming. The price held support at the 50% of the 2012 range. The price moved above some trendlines. The final straw was the break above the 38.2%-50% at the 1.3077/86 area.  Shorts covered and the price extended to the days midpoint.

USDCNH moves higher today on easing concerns

The USDCNH broke above the 100 day MA for the 1st time since December 15th at the 6.3325 level. The price extension has moved to the highest level in 2012 (6.3406 was the previous high. Today’s high reached 6.3429)  but has backed off and the price is back below that 2012 high level. The pair has been supported  by the thought that the PBOC will continue to lower the banks reserve requirements.

EURGBP selling on support levels break

The ERUGBP fell below the 200 hour MA and trendline support and stops were triggered. The break sent the price to the lowest level since March 5th and also helped contribute to the sudden surge higher in the GBPUSD.

The move lower, extended below steep downside trendline. This should have solicited further downside momentum. The failure to extend lower could be an indication of the market going too far too fast.  A move back below the low should not be ignored, however.

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