AUD

Further weakness in the dollar or that’s it?

Let’s Re-cap yesterday, Nothing much happened until Around the release of the ISM manufacturing Index From the US, Market was expecting a forecast of 48.0 from a previous of 50.7.

Right Before the data was released EUR/USD printed a new Historical High of 1.5275, when the actual Data shows up 48.3, still Weaker than the previous month but better than the actual forecast, Euro went right back to where it started.

Is this market’s way of thinking, “ Hey The economy is not that bad, yeah it’s slowing but not as bad as we thought” ? Maybe… but USD/JPY back to its 3 years low @102.60, still shows sign that Traders in the market are not willing to think that way.

Risk Aversion is There and will probably stay this week,with what I call the Rate week, we have 5 Major Central banks with their rate decision, Starting with the RBA in about 2 hours time. Read the rest of this entry »

Dollar slammed last week but recovered some ground on Friday.

The Dollar has recovered some lost ground against all Majors on Friday, profit taking has been blamed for the drop especially in Euro and AUD.
The drop in Dollar mid last week was hugely attributed to comments made by Fed Chairman Bernanke on his 2nd day testimony, in which he stated that smaller banks are most likely going to be affected with all the Economic concerns for the USA.

Read the rest of this entry »

Hi everybody!

We started the London session today with a look at the AUDUSD, which at the time was in a minor bearish correction but still strongly supported for upmoves, targets @0.9270, 0.9334. At the time of this writing the first target was reached, waiting to see the reaction to the 2nd target.

EURUSD and GBPUSD looked overbought, possibility of consolidation down however the bears have not yet stepped in with serious momentum. Charts look like forming a narrowing range which at the moment points down, with a more bullish bias for GBPUSD (it seems to have started rallies across the board).

USDJPY and GBPJPY both looked bullish, with USDJPY confirming earlier and giving a stable rally on overall yen weakness, which we expect to continue.

However, the big winner of the day remains the CAD, which managed to rally against all the majors, especially agains the JPY and EUR. USDCAD looks like in the first stage of a much larger leg down, a move that we are currently focusing on.

Happy trading!