Forex Signals

“Good judgment comes from experience, and often experience comes from bad judgment.” ~ Rita Mae Brown Good morning. I’ve been away with limited access to the internet for the past three days, but looking at current charts, I don’t seem to have missed much. However, things are likely to become interesting USD Index Dollar is pulling [...]

The Australian dollar (AUD) is probably the best proxy for risk appetite in the forex market as it is one of the most heavily carry-traded pairs because of the high interest rate in Australia.  One of the other reasons is because the Aussie dollar is also a de-facto proxy of Chinese growth as China is [...]

USDCHF is facing 0.9546 resistance, a break above this level will indicate that the uptrend from 0.8569 (Oct 27, 2011 low) has resumed, then further rise towards 1.0000 could be seen. Support is now at 0.9400, only breakdown below this level could indicate that lengthier consolidation of uptrend is underway.

Daily Forex Forecast

Most of the time the chart of the day is a discussion of a particular currency or pair and gives a longer-term outlook for where prices may be going.  Today I am throwing a bone to the short-term traders by including this “teachable moment”.  Not to mention that today is a range-bound, low volume day [...]

Lost in the shuffle of the risk themes in the forex market due to the Euro debt crisis, the Canadian dollar has been weakening despite some fairly positive economic news.  While the US dollar has been strengthening vs. the Euro, the data in the US has been largely positive which bodes well for US demand.
This [...]

GBPUSD failed to break above 1.5779 resistance, and pulled back from 1.5768 yesterday, suggesting that lengthier sideways movement in a range between 1.5423 and 1.5779 is underway. Deeper decline to 1.5500 area to reach next cycle bottom is expected. Key resistance remains at 1.5779, only break above this level could trigger another rise towards 1.6500.

Forex [...]

EURUSD is testing the resistance of the price channel on 4-hour chart. As long as the channel resistance holds, the price action from 1.3212 could be treated as consolidation of downtrend from 1.4246, and one more fall towards 1.3146 (Oct 4 low) is still possible. On the upside, a clear break above the upper line [...]

To avoid situations in which you might make mistakes may be the biggest mistake of all. ~ Peter McWilliams Good morning. The dollar continued to retreat against some of its counterparts as risk appetite returned. However, the move is rather normal after recent strong gains and so far it looks corrective. USD Index As seen below, [...]

USDCHF broke above 0.9040 resistance, suggesting that a cycle bottom has been formed at 0.8881 on 4-hour chart, further rally is possible later today, and target would be at 0.9100-0.9150 area. However, the rise is treated as consolidation of downtrend from 0.9314, another fall could be seen after consolidation, and a breakdown below 0.8881 could [...]

Quote of the day: “When it is not necessary to make a decision, it is necessary not to make a decision.” ~ Lord Falkland Good morning. The euro is back to $1.3800 after pulling back on S&P’s downgrade of Spain, but $1.3700 provided support yesterday – as expected.  Short-term studies remain bullish while the pair holds [...]