Interest rates could present the pull back

This
week’s trading sessions are going to be action packed, with Australia
scheduled first to take the stage. As all the central banks are
expected to hold this time round, intraday movements could present
traders with potential setups, especially for swing traders. In
addition to the rate decisions, GDP figures are expected to be released
in a few of the regions, while England will be releasing its inflation
numbers. Towards the end of the week the U.S will release the catalyst;
the NFP result- known to be a major market shaker. Non-farm payrolls
are expected to show a lower contraction compared to last month’s
figure while the unemployment rate is expected to jump to a whopping
9.2%.
It is important to note that even though the unemployment rate
has been increasing on a monthly basis, investors are pushing the data
aside, still heading back into riskier assets.
To view the full economic calendar click here.



 
Due
to recent price movement it now seems more important to ask when
economic data will start to show major improvement, giving the current
rally some major backing, driving it even higher.

Technical Analysis:

EUR/USD weekly chart




GBP/USD - weekly chart



AUD/USD- Weekly Chart



USD/JPY- Weekly Chart



*all charts are courtesy of netdania.com

*Powered by etoro.com

Read the full article at dodjit.com

Heading for a Chapter 11? | forex trading

The Pound is clinging on to $1.6

Even
though the economic calendar was relatively light on data yesterday the
various Forex pairs still presented a volatile session. The Dollar Index
jumped higher after three days of treading water, climbing to 81
points. One must note that the 80 point level will act as a
psychological support level, especially as the 80 points acted as a
critical pivot point in the past.

The Pound/ USD
continued higher though early morning hours but retraced after finding
resistance around $1.6. Today session started in a bearish mood as
sellers came back into the market. Even though indicators are showing
dramatic signs of overbought levels, current market conditions could
send this pair higher in the long term, especially as certain analysts
are still classing the pound as undervalued. Recent trend line
resistance could act as support on the way down, allowing bullish
traders more comfortable entry points.




The USD/JPY presented a massive turnaround during early morning hours
climbing by over 100 pips.  The main reason for the climb was risk
appetite as investors from across the globe, sold the low yielding
currency to buy the USD Dollar. According to recent comments from
Treasury Secretary Timothy Geithner, the economy is
making progress and “credit is starting to ease a bit”. According to
Bloomberg news; the U.S government’s current rating is still stable
despite recent problems in the economy.
Read the full article at dodjit.com

Will the EUR/GBP drop?

On the Forex Market the Dollar
index lost its strength during the session, as investors rushed back
into riskier assets. While there weren’t any major moves on the FX front, currency pairs continued to linger around critical levels, showing potential breakouts.

Over the last couple of weeks, the Euro and the Pound
have received a major boost as a higher equity markets have boosted
confidence among investors. While both economies are still showing a
dire situation, recent bank statements are mentioning that 2010 could
present a completely different picture.

While both the economies seem to be dealing with never ending problems, the Pound
has strengthened the most over the last couple of week despite a lower
yielding return. When observing the relative strength between the two,
one can see that the Pound has gained more in real value compared to
the Euro. From a trading point of view the EUR/GBP has dropped by an
enormous rate and is now trading on major support of 0.8740. One must
note that a clear break is required for short positions, especially as
the price pattern presented a false in the past.



Read the full articl at dodjit.com

 *courtesy of netdania.com

Dollar Comes Up for a Breather

After a battering week for the Dollar,
buyers came back into the market banking profits on short positions.
The index bounced higher off the 80 point psychological level as the
European market presented further problems during the session. GDP
results in Germany presented a disappointing figure, showing that the
Euro-zone’s largest economy is still feeling the depth of the current
recession.

GDP
figures for the first quarter showed a whopping -3.8% compared to its
previous -2.1%,while the yearly figure showed a -6.7% result. In
addition, Nonfarm payrolls from Switzerland missed expectations of
3.963m, coming out at 3.957.

Worse than expected data helped increase momentum during early morning hours, sending the Dollar higher against its counterparts.

Despite
today’s strength one must continue to observe the overall trend. By
taking a glance at the following chart, we can see that despite
intraday strength the EUR/USD is failing to break recent support. When
observing all the charts carefully it is important to note that current
movements haven’t caused dramatic change that is yet noticeable on the
charts.



Read the article at dodjit.com

Dollar Comes Up for a Breather

After a battering week for the Dollar,
buyers came back into the market banking profits on short positions.
The index bounced higher off the 80 point psychological level as the
European market presented further problems during the session. GDP
results in Germany presented a disappointing figure, showing that the
Euro-zone’s largest economy is still feeling the depth of the current
recession.

GDP
figures for the first quarter showed a whopping -3.8% compared to its
previous -2.1%,while the yearly figure showed a -6.7% result. In
addition, Nonfarm payrolls from Switzerland missed expectations of
3.963m, coming out at 3.957.

Worse than expected data helped increase momentum during early morning hours, sending the Dollar higher against its counterparts.

Despite
today’s strength one must continue to observe the overall trend. By
taking a glance at the following chart, we can see that despite
intraday strength the EUR/USD is failing to break recent support. When
observing all the charts carefully it is important to note that current
movements haven’t caused dramatic change that is yet noticeable on the
charts.

forex and stock video briefing

dodjit's forex and stock video briefing fo 04-25-09 from dodjit on Vimeo.

Stocks continue to linger at their highs

Over the last couple of months FX
traders have become accustomed to a situation whereas the Dollar and
equity indices have traded in a negative correlation. Prior to the
month of March the Dollar index was classed as a safe haven, as
investors preferred the world’s currency compared to a risky stock
market. Many trends or counter trends where characterized by the same
type of situation;

As stocks rose, the Dollar lost its strength.
As stocks dropped the Dollar gained strength as a safe haven.

This
week the correlation between the two weakened significantly as stocks
pulled back but the Dollar failed to gain strength, dropping rapidly
against its counterparts. By taking a glance at the chart below one can
see the movements from last week’s session. As the major indices
corrected, so did the Dollar index.


  *courtesy of netdania.com
Read the full article at dodjit.com