Two American figures will be in the limelight todya: retail sales and consumer sentiment. In addition, we have employment figures from Canada and other events. Let’s see what’s up for today. Up to now, this week saw tight trading, especially in the major pairs. Only the Aussie stood out with a break, enjoying good employment figures among other reasons to rise. OK…  Read More →

Recent bearish price action on spot gold, a daily chart of which is shown, has prompted a correction back down to the long-term uptrend support line. This bearish correction occurs right after price reached a high of around 1145 just last week. As of Thursday (3/11/2010) morning New York session, price is hovering right around the key trendline. For more technical analysis on gold, please click here for Thursday’s (3/11/2010) Chart of... 

The proposed regulation by the CFTC isn’t only about leverage. It consists of regulations that are a big blow to brokers and to introducing brokers. A group of IBs has joined forces to challenge the CFTC in a new site: ibcoalition.org . All the founding members of this coalition are members of the NFA. Regarding permits, they ask to get the same treatment as IB operators in futures or guarantees. They also ask the CFTC to study forex market... 

One of the pitfalls of forex blogging (or all financial reporting for that matter) is that it’s inherently after-the fact. In other words, any information about the past – while relevant – is inherently useless, since it has theoretically already been priced into the asset (or currency in this case). Before I begin my post on the Pound’s recent decline and the factors that wrought it, then, I wanted to offer the caveat... 

The calendar is crowded today with major releases: Australian jobs, a rate decision in Switzerland and important figures in the US are the highlights today. Let’s see what’s up. As seen in the Non-Farm Payrolls and also beforehand, the commodity currencies continue to show strength while the Euro and the Pound are weak. This will probably continue, although the Euro seems to be stabilizing . After making a move upwards , Australia provides... 

Though technically still entrenched within a sideways consolidation, AUD/USD (a daily chart of which is shown) has displayed a marked bullishness since the early February low. This bullishness has prompted the pair to rise above several key resistance levels to the point where the 15-month high just above 0.9400 is not far off. For more technical analysis on this currency pair, please click here for Wednesday’s (3/10/2010) Chart of the... 

As of Wednesday (3/10/2010) morning New York session, price action on GBP/USD has continued its slide that began in the beginning of the week. Having broken down below the key 1.5000 mark, continued bearish price action in line with the overall downtrend could currently be targeting support around the long-term 1.4780 low of last week. – James Chen, CTA, CMT * For information on my DVD set, High-Probability Trend Following in the Forex... 

I was on CNBC Squawk Box Australia last night talking about the outlook for the Japanese Yen as well as the European currencies:  Read More →

EUR/USD is trading in a range for over a month. While the long term trend is bearish, some bullish hints can be found within this range. Since February 4th, EUR/USD plunged into a range between 1.3423 to 1.3850. At the beginning the trend in the hourly charts was negative. On February 19th, the bottom line of 1.3423 was approached for the first time. And later, the peak was lower than previous peaks – 1.3690 on February…  Read More →

It was all looking like an orthodox drift higher in equity markets last night until the SPX rolled over in a late-session swoon, perhaps on rumours that the government would flog out its considerable holding in Citigroup? Regardless, Macro Man’s Bloomberg inbox lit up with comments on the heavy futures selling driving the 7 point reversal…..perhaps this is a sign of the top?…  Read More →

After two light days, today’s calendar is quite busy: a rate decision in New Zealand and the Federal Budget Balance are the highlights. Let’s see what’s awaiting us toady. We’ve already see one hesitant break of the Australian dollar and we’ve seen the USD/CAD edge down, still not breaking 1.02. In these currencies, the action will probably be seen after they post employment data. OK, let’s start the review:... 

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Price action on USD/CHF, a daily chart of which is shown, has consolidated in a tight, slightly bearish consolidation right underneath a key long-term downtrend resistance line extending from the 2008/09/10 high hit in November 2008. Since recently hitting this trendline in mid-February, price has bumped up against it several more times without breaking the dynamic resistance imposed by the line. Currently, since the lows around parity (1.0000)... 

The dollar gained back some of the losses amid a light calendar. Also today, there aren’t any huge events, but there are some indicators that will move currencies. Let’s see what’s up for today. British BRC Retail Sales Monitor began the day with a rise of 2.2%. This can hint about the official retail sales figure. The RICS House Price Balance was quite disappointing with a drop to 17%, half the expectations. More regions are... 

My favorite forex trade right now is shorting AUD/NZD. After hitting a 9 year high of 1.3124 last week, the rally in AUD/NZD is losing steam. I should have posted about this earlier, but I think there is still room for the currency pair to fall. Last week, the Reserve Bank of Australia raised interest rates by 25bp to 4 percent but hinted that from here on forward, they will begin to slow …  Read More →