Top Forex Reviews

Last week, S&P fulfilled rumors by lowering the Sovereign credit rating of Japan. The move immediately sparked headlines filled with words like “roil” and “turmoil,” and analysts predicted the beginning of a massive correction, like the kind that I forecast in January. I decided to wait a few days before posting on this story, in order to wait for the dust to settle. I’m glad I did, since the Yen’s stubborn refusal to slide further beggars some kind of explanation!

In hindsight, the Yen’s 1% fall during that day’s trading session was modest by any standards, despite the financial media’s attempt to characterize it as extraordinary. Even those analys

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USD/CHF is continuing the prevailing downtrend inside the Falling Wedge chart pattern identified by Autochartist on the daily charts. The Quality of this chart pattern is measured at  5 bars which is as a result of the low Initial Trend reading 1 bar, the above average Uniformity reading of 6 bars, as well as the Clarity reading at 10 bars. The low Initial Trend value corresponds to the range bound price action that accompanied three successive unsuccessful attempts of the price to break through the support level at 1.0500 (former resistance). Full post…

The last few years have been volatile for the British Pound. In 2007, it touched a 26-year high against the US Dollar, before falling to a 24-year low a little more than one year later. During the throes of the credit crisis, analysts predicted that it would drop all the way to parity. Alas, it has since managed to claw back a substantial portion of its losses, and finished 2010 close to where it started.

At the moment, however, there are two contradictory forces tugging at the Pound, which could send up upwards against the Euro but lower against the US Dollar.

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News and Events
 
The euro was steady near a two month high (1.3725) against the dollar after the Fed showed reluctance to scale back its easing policy and voted unanimously to hold interest rates steady, repeating that they would stay low for an extended period. While eur/sud retreated prior to the release due to market expectations of a more hawkish stance by the Fed, it quickly recovered as nothing new was announced.  The most important point of its announcement is that although the economy is recovering, it is still not reflected in the labour market. W Full post…

• Dollar Tests a Fresh Two-Month Low after the FOMC Decision, Looking Ahead to GDP
  
• British Pound Traders Too Optimistic on Rate Implications of BoE Minutes
  
• Euro Economic Activity and Inflation Merely a Distraction to Financial Concerns
  
• New Zealand Dollar Rallies Despite RBNZ’s Near-Term Dovishness
  
• Australian Dollar Eases after Prime Minister Announces a One-Time ‘Flood Levy’
  
• Japanese Yen Untroubled by Ballooning Debt Forecasts, What about Growth Updates?

Dollar Tests a Fresh Two-Month Low after the FOMC Decision, Looking Ahead to GDP

The dollar can’t seem to catch a break. The ben Full post…

When offering forecasts for 2011, I feel like I can just take the stock phrase “______ is due for a correction” and apply it to one of any number of currencies. But let’s face it: 2009 – 2010 were banner years for commodity currencies and emerging market currencies, as investors shook off the credit crisis and piled back into risky assets. As a result, a widespread correction might be just what the doctor ordered, starting with the Australian Dollar.

By any measure, the Aussie was a standout in the forex markets in 2010. After g

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Consolidation hit the forex markets yesterday with little influence from economic data. We received more dialogue from European officials concerning their Emergency Funding Facility, but really only going over old material so no material effect on rates. Trading has looked to concentrate on testing the technical resistance in Eurodollar at 1.3525. We are sitting just above that level at present but we will need to close higher this afternoon in order to signal a shift higher.

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LONDON (MarketWatch) — British retail sales volumes fell 0.8% in December as heavy snowfall dampened holiday-related shopping, the Office for National Statistics reported Friday. Compared to the same month in 2009, sales were flat. The decline was larger than expected. Economists surveyed by Dow Jones Newswires had forecast a 0.4% monthly fall and a 0.8% year-on-year increase.

Being a practitioner of fundamental analysis, you could say that I’m always on the lookout for hard evidence that fundamental analysis is superior to technical analysis. Thus, I was delighted to discover a working paper (“Technical Analysis in the Foreign Exchange Market“) by the St. Louis Branch of the Federal Reserve Bank, released just this month. Alas, the paper barely touched upon fundamental analysis, but its conclusions on technical analysis in the currency markets were startling. In sh

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APC Group Inc. (APC), an energy unit of the much favored Belle Corporation (BEL), is indeed poised for a huge upswing in the days to come. APC’s price action, in my opinion, is a technical work of art or a masterpiece to say the least. As you can see from its daily chart, APC’s first notable move was when it broke out from an inverted head and shoulders pattern (highlighted in light blue). After the move, it reached a high of PHP 0.66 before tapering off, developing a cup and handle formation in the process. It Full post…