Take a look at the Australian dollar chart below. Do you see the head and shoulders / triple top formation that I see? =)
The Australian employment numbers didnt make anyone happy. A deeper pullback is likely but I don’t except the AUD/USD to trade much lower than 99 cents. Remember the hawkish [...]

Posted in Australian Dollar, Forex Technicals, Reserve Bank of Australia, aud/usd, australian dollar forecast, forex blog 6 Comments »

The following chart shows an inverse head and shoulders breakout in the S&P. Given that currencies like to trail equities, this suggests that we could see further gains in the EUR/USD and maybe even USD/JPY.

Posted in Forex Technicals, S&P, Stock Market, forex blog No Comments »

Last week, I wrote that shorting AUD/NZD is my favorite trade. At that time, I said that if the currency pair rallies back above 1.31, then the uptrend has resumed and my call is wrong. However, AUD/NZD tortured me and came within 2 pips of 1.31 (1.3098) before reversing sharply lower. There [...]

Posted in Australian Dollar, Forex Technicals, aud/usd, forex blog 10 Comments »

For the past four trading days, the British pound has been stuck in a 200 pip range against the U.S. dollar and a 115 pip range against the Euro. However the bottom of the range in both the GBP/USD and EUR/USD have been broken, leading currency traders to wonder if the larger range will be [...]

Posted in 2009 british pound forecast, Bank of England, British Pound, Forex Technicals, GBPJPY, forex blog, gbpusd 3 Comments »

The 95 price level for USD/JPY has served as very strong support over the past few months and now that the currency pair is trading well below that price level, it appears that the floor is caving in.
The following chart illustrates the significance of the breakdown. USD/JPY is trading in sell zone, [...]

Posted in 2009 japanese yen, 2009 japanese yen forecast, Forex Technicals, Japanese Yen, forex blog 3 Comments »