Forex Trading - Advice and Tips

The dollar ended broadly lower Wednesday in New York as sustained equity market strength drove the Dow Jones Industrial Average above the 10,000 mark and of continued dovish monetary policy in the US weighed on the greenback, The Euro and other risk sensitive currencies rallied in early morning trading, stalled for a perios as equity markets wobbled, and then rallied in afternoon trading again, They strengthened modestly in the early afternoon when the DJIA initially breached the 10,000 level for the first time in more than a year, but rallied more convincingly immediately after the US Fed released the minutes of its September meeting

The pair remains under pressure and should face a further weakness as the RSI is badly directed. Suggest short positions below 89.5 with targets at 88.8 and 88.65. The upside breakout of 89.5 will open the way to 89.9 and 90.2
Weekly chart trand remains Bearish

Keep on Tradin'!

The pair stands in a bullish channel and is challenging its resistance, the RSI is supported by a rising trendline. Suggest long positions above 1.4815 with targets at 1.49 and 1.4955. The downside penetration of 1.4815 will call for a slide towards 1.4762 and 1.4735.
 Weekly chart remains Bullish

The Euro continued its run against the dollar Tuesday in NY, hitting a one-year high in early trading, before giving back some of theose gains on wavering US stocks and profit-taking. Yield-seeking investors ignored worse than expected euro economic data and seesawing US stocks to propel the better-returning euro toward $1.50. Newtons Law fully applies right now: the dollar will continue to fall unless it has a good reason not to! The dollar's ultra-low interest rates make it attractive for investors to use the buck to fund bets in higher-yielding currencies, such as the euro and the commodity-backed CAD and AUD 

The pair has rebounded on its support base but remains under pressure as the RSI lacks upward momentum. Suggest short positions below 90.2 and 89.65 and 89.4 as next targets. The upside penetration of 90.2 will call for a rebound towards 90.5 and 90.7.
Weekly chart trend: Bearish

From tomorrow, by popular demand, I will begin posting my outlook on the USD/JPY currency pairing. Above was my outlook for yesterday for comparitive purposes. I hope this is useful to those who requested it.
Keep on Tradin'

The pair is shaping a shprt term bullish flag and should post a further up move as the RSI is turning up. Suggest long positions above 1.4735 with 1.482 and 1.4825 as next targets. The downside penetration of 1.4735 will call for a slide towards 1.471 and 1.467
Weekly chart trend: Bullish

The Euro advanced against the dollar on Monday in NY, but fell off its earlier highs as the common currency tracked seesawing US equities. Subdued trading because of the holidays in Japan, the US and Canada kept most currencies within tight ranges even as rising risk appetite led investors to bid the $1.48 for part of the day and sent the Canadian dollar to a fresh 13-month high. With no econimic data on Monday's calendar, currencies took their cues from stocks, with strenghtening equites leading to heightened risk appetite and a stregthening of the Euro and other high-yielding currencies. As stocks dipped into the afternoon trading, the euro pulled back.

The RSI is now turning up, the pair should rebound on its strong support. Suggest long positions above 1.467 with 1.4745 and 1.4775 as next targets. The downside penetration of 1.467 will call for 1.464 and 1.46.
Weekly chart trend: Bullish

The dollar rebounded against most widely traded currencies on Friday in New York, Rising on a combination of more positive US economic signals and some end-of-the-week profit taking on gains logged over the past several sessions against the US currency. The dollar's comeback began overnight on the back of the comments by Ben Bernanke lateon Thursday regarding the the eventual tightening os US monetary policy, and then accelarated in in North American trading following a better than forecast report on the US trade balance in August. The trade deficit unexpectedly narrowed by $1.2 billion, to $30.7 billion, during the month.
The dollar was also supported by higher yields on US treasury securities Friday, which rose on the impact of Bernanke's comments about the need to tighten monetary policy and shrink the Fed's blaoted balance sheet once the economy shows signs of improved improvement. Loose monetary policy and ultra-low interest rates encourage investors to use the low-yielding dollar to fund bets on riskier assets such as commodity-backed currencies such as AUD and CAD.