Perhaps the ECB will do … nothing?

     As the ECB is due to announce its decision on interest rates, the central bankers face on of the biggest dilemmas. To do it or not?
    On one side is the pro-inflation factor of the growing petrol prices, as the inflation in the eurozone reached 3% in the November. [...]

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Look, I can draw lines too!

    Sometimes it gets ridiculous how many lines you draw on a chart. My colleague Blake Young, for example, likes to draw so many lines on his charts that he’s sure to always be right about support and resistance!
    So it goes with me for the kiwi right now. I couldn’t resist drawing lines everywhere. [...]

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AUD/NZD double top and its 200 day MA

The pair definitively jabbed thru its double top support a few days ago. Yes its a double top, be ye not fooled by its hunchbackedness. The question is whether to get in short now (if you didn’t already).
It feels like it’s gone a bit far for a retest of old support, but then, it does [...]

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Yesterday on the daily audio commentary

I was not able to load this up yesterday, so here it is late:
Today on InvestoolsFX Audio:
New intro music, review of the $VIX=USD/JPY correlation. Don’t be fooled, institutional commentary and the ever-talented Pat Mullaly breaking down more psychological techniques to improve the bottom line. Successful Trading.

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Two different Stochastics oscillators

One of you good FX students, Mona, gave me permission to share this with everyone: so here it is thrown out into cyberspace!
The question was:
    On your blog article yesterday on the USD/JPY you were using a slow stoch 14-3. What is the difference between that and a full stoch 14-6-6? [...]

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That dollar sure is a turkey

    The poor buck, here’s a funny cartoon one of you sent one of us and floated among us in email, courtesy of the commentary section of the Christian Science Monitor:

    Speaking of, my adventurous wife and I spent hours last night drooling over our next vacation; we ran into a website (homeexchange.com) that hooks [...]

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Fed be nimble, Fed be quick

    The Fed (VP Donald Kohn) said today that they would be using
 
“(these uncertainties require) flexible and pragmatic policymaking — nimble is the adjective I used a few weeks ago.”
and carry trades got a shot in the arm as stocks jumped - no matter that durable goods and housing data came in wimpy, all is [...]

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The trade that never was

    Following up on our USD/JPY scalping set-up last night, a good trade never presented itself in the context of our discussion.
    It’s actually a dang good example of how sticking to the studies for signals can keep you safe. As the price started to come down from resistance last night, it was without the [...]

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Scalping the USD/JPY

    The pair broke thru some good support on the daily chart. Definitely the trend is down here (dollar weakness, the yen benefiting from carry supply) and it’s a pretty picture if you’re scalping: with the comfort of the above knowledge/long term trend, check out the nice pattern wining along here on the 60-minute chart.
    [...]

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Tune in to Monday’s audio commentary

Today on InvestoolsFX Audio:
China to allow sovereign investment in Japan, and how will a new political party in Australia affect the Aussie? The JPY and CHF dominate the relative strength charts … what does this mean for you trading? And, a principle that has made me a good currency [...]

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This is what I’m watching right now

     We have to keep keeping an eye on stocks. The S&P500 ($SPX) just broke below its rising support level, which is nasty enough. Now the next level to watch out for is definitely the horizontal support below, which would make this out to be a double top. Remember, stocks [...]

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Tune in to Wednesday’s audio commentary

Today on the Dailyfx audio commentary:
    More yen shortfall and the making of a good trade. Review of the bearish yen setups and execution. Pat steps in to dish out more strategies to help you better manage the psychology of trading. Happy Thanksgiving.

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Woman vs. turkey

Did anyone see this commercial when it aired a couple years ago? Hilarious! Gobble gobble!

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This is an example of a “bounce”

     The pound looks to be “bouncing” versus the dollar. We usually mean this to say it bounces off of support (in this case) or resistance. Or sometimes if could be bouncing up from forming a new low (in this case) or high.
    Anyway, a “bounce” is when it hits the S/R and lifts [...]

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$100 oil and the major pairs

     Quick, what’s a technical implication of big fat round numbers (like 100)? The answer is that they often serve as support or resistance. This morning oil is at about $97/barrel.
    Here’s the deal: as oil goes higher, the dollar tends to head lower, and vice versa. So effectively the buck is near some [...]

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