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:... 

We just created a new trading strategy. If you are interested in receiving this FREE REPORT, please sign up by visiting BKForex Advisors and using this link for the Session Based Forex Breakout Trading Strategy  Read More →

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 →

I’m proud to announce my participation in FXstreet.com’s International Traders Conference Online 2010. This conference will feature the same key speakers, topics, and live trading education as the International Traders Conference 2009 in Barcelona that I participated in last year. Here are all the details for this upcoming online conference in April: http://www.traders-conference.com/itc-online.aspx  . Hope  Read More →

Price action on GBP/USD, a daily chart of which is shown, has made a bullish correction since the beginning of March after having dipped well below the key 1.5000 psychological level on March 1st. This bullish correction exists within the context of a steep accelerated downtrend in the pair. After having corrected up to approach the 1.5200 price region, the directional bias continues to be bearish in line with the strong current downtrend. For... 

If the economy was a person, then the producing sector (agriculture, manufacturing, mining, etc) would be its “income”. If the service sector is much smaller than the producing sector (like China today or the US one hundred years ago), then a country is living below its means (net saver). If the service sector is much larger than the producing sector (like China today or the US one hundred years ago), then a country is living above its means... 

Well, when all was said and done Friday’s payroll report wasn’t half bad. The BLS clearly scuffled with figuring out just how much of an impact the snow had on the data, but even so with only a marginal adjustment for the weather you’d end up with a pretty decent set of figures. The reaction in equities and “pro-risk” currency pairs was fairly predictable, though the decent performance of European currencies may... 

The market took its time to digest last week’s good Australian news, but now it finally made the break above the stubborn resistance line. Update on this strong currency. AUD/USD finally broke above the stubborn resistance line of 0.9090 for the first time after 6 weeks. The pair currently trades at 0.9130, settling above the line. After dropping below 0.9090 on January 21st, there were immediate attempts to break above this line, but... 

Off-topic post. My associates and I are proud to present TheWadi – a blog and company index for Israeli technology companies and start-ups. We have one major goal: providing maximal and constant exposure to Israeli technology worldwide. After a few months of research, design, programming and last minute touches, we’ve launching it today. TheWadi’s content consists of: Launches of web start ups. New features and products by web companies.... 

Since most emerging market economies and financial markets are fairly small, their currencies are subject to the whims of international investors, moreso than is the case with major currencies. For that reason, when I research emerging market currencies as a whole, I often like to focus on what investors are saying are saying about their stocks and bonds. According to one columnist , “For an asset class once considered a snake pit of risk,...