Archive for August, 2009
« Previous EntriesGBP/USD Short Looking Good!
Wednesday, August 26th, 2009Just wanted to post a quick update on this trade that triggered yesterday. We actually closed out a portion at 1.6175, for a 175 pip gain. This pair is the biggest loser of the day so far (-1.04%), so it appears that other traders may have recognized the H&S pattern as well. The reason we […]
Trade triggered!
Tuesday, August 25th, 2009Well it looks like we didn’t have to wait very long for that possible GBP/USD H&S pattern to trigger a short sale. (See below) We are short this pair and looking for a major push down in the next day or two. Our stop is placed just above 1.66 (above the top of the right […]
Possible Head and Shoulders Pattern in GBP/USD?
Monday, August 24th, 2009A lot of times, especially during the summer slow months, there isn’t enough fundamental news to drive the markets and it’s times like these when the technicals can really take over. Just doing a quick perusal of some charts, I came across this: a possible head and shoulders pattern in GBP/USD. Have a look:
As you […]
How to know how much a “pip” is worth for any pair!
Thursday, August 13th, 2009Many times, newer traders ask me how they can find out how much a “pip” is worth for any pair. Some will refer to these as pip “costs”, others will say pip “values”, etc. but it’s all the same thing.
They all want to know, if my pair moves up one increment or down one […]
Here’s what makes the Carry Trade so great!
Thursday, August 13th, 2009Many people don’t really get the “carry trade” strategy and why it’s so great. Their focus is on the daily interest and they don’t see themselves getting rich off of the daily interest. However, that’s only ONE of the reasons why traders get into the carry trade.
Think of a carry trade this way. Let’s say […]
Dollar’s rally is just about to run out of steam!
Wednesday, August 12th, 2009Even bear markets have rallies. But why would I refer to the dollar’s recent rally as a “bear market rally” and not a rally into a “new trend”? Because there is no technical indication that has surfaced to think otherwise. Click on the chart below to enlarge it.
Several things worth noting on that chart […]
New Zealand strength starts to emerge!
Monday, August 10th, 2009New Zealand is climbing its way up to the top of the pack of stronger currencies. It has THE highest CPI (year over year) and has the 2nd highest interest rate out there. With the high CPI readings, traders are starting to bet that they will have to hike rates sooner rather than later.
But you […]
Don’t be fooled by Friday’s “dollar rally”!
Sunday, August 9th, 2009The U.S. dollar got a nice “pop” on Friday as a better-than-expected NFP (employment) report came out. However, I call this a “sucker rally” because the dollar’s broad trend has been downward since March (according to the U.S. Dollar Index chart).
Therefore, since the probabilities lie on the side of the trend, it’s best to short […]
Canada’s central bank is “smoking something”!
Thursday, August 6th, 2009Well, “intervention talk” is in the air again! This time it’s the Bank of Canada!
Why are they so concerned with their currency? Well the USD/CAD exchange rate has dropped from 1.30 to 1.07 (2,700 pips) in mere months (5 months to be exact).
This can wreak havoc upon a company that is trying to […]
How much influence does a government really have over its currency?
Tuesday, August 4th, 2009I’m often asked…”How much influence does a government really have over its currency?”
I say, it has tons to do with it. A government really “sets the tone” for its currency in many respects.
How so? Here are seven major ways that I believe a government greatly influences its currency.
7 Ways a Government Influences its […]