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  • Recent USD Rally… Why?

    Jul 23, 2008 / 4:37pm / in Economics, General, Oil, Patterns, United States Dollar, Forex News

    With mixed news coming out of the world’s remaining superpower in recent weeks, the recent US dollar rally induced widespread befuddlement. With Europe suddenly looking economically worse-off than America, it is easy to understand why the USD has rallied against the EUR. However, the USD has rallied against many of the major currencies, including the JPY and the CHF. In other words, it is not only bad news coming out of the Euro-Zone that is fueling this USD rally. So, the important question is what exactly is causing this rally?

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  • The Joys of Being in a Range-Bound Market

    Jul 17, 2008 / 6:51pm / in Currency, General, Money, Patterns, Forex News

    For several months, one of the hottest debates in the currency world has been “1.50 or 1.60?” Those who follow the Euro-US Dollar currency pair have been debating its future for several months. Since around the end of February, the price has been locked within a range of 1.50 and 1.60. Only on three days has the price ventured outside that area during the past few months, yet each of those days, the price closed back within the range.

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  • A Technical Update on the U.S. Dollar

    Jul 23, 2007 / 7:38am / in Currency, Economics, Forex Trading, General, Money, Oil, Patterns, United States Dollar, Western Europe, Forex News

    As the U.S. dollar fell to record lows against the euro last week, technical analysis may indicate an earlier than expected rebound in the short run. Last week traders speculated long-run rebounds due to the U.S. economy benefiting from a weak dollar and from pressure on the ECB by Nicolas Sarkozy to cool a strengthening euro. But as traders have been eyeing the Relative Strength Index (RSI) on the EUR/USD pair, there is a possibility of a short-run rebound.

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  • Subprime Woes Causes Bleak Outlook on U.S. Dollar

    Jul 2, 2007 / 9:06am / in Currency, Economics, Forex Trading, General, Interest Rates, Money, Patterns, United States Dollar, Forex News

    As U.S. interest rates remain unchanged at 5.25% for the 8th straight Federal Reserve meeting, and as terrorist arrests in London spur worldwide concern, the U.S. dollar has dropped against major currencies. The dollar fell 0.5% to 1.3605 per euro and 0.6% to 122.44 yen. Investors have become more risk-averse with the recent geopolitical events. As a result, demand for the yen and the swiss franc, a haven for security, has increased.

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  • Head and Shoulders

    Feb 14, 2007 / 5:56am / in Forex Trading, New Zealand Dollar, Patterns, Forex News

    We have an early head and shoulders formation on the NZD/USD monthly chart. Many would wait until the bottom of the shoulder before taking a short, but even if you target the middle of the shoulder you have about a 400 pip move possible.

    Beware this trade could take a while to develop as we are looking at a monthly chart and the carry is against you on this trade.

    Definition: Head and Shoulders
    Kiwi Dollar

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