Forex Bull

Tue, 07 October 2008 By Johan Kriek (jkriek@fxinstructor.com) Key notes: -BoJ keeps rates steady at 0.5% -RBA cut rates with a full 100 basis points, does not seem to send the AUD lower -Equity indexes globally plummet, Russian & Brazilian markets halts trading -Dow below 10,000 -FOMC Sep meeting minutes released in US session later today Bullish Probability but no trade zone. Wait for the 1 hour stochastic to cross bullish to signal that market rhythm is once again trending in the direction of highest probability Bearish Probability but also in a no trade zone.

The Australian Dollar rallied to test 0.7300 having traded as low as 0.6985 in US hours as the Reserve Bank of Australia shocked the markets, issuing a full 100 basis point interest rate cut.

Fading risk sentiment has certainly pushed the Japanese yen higher against its counterparts, and may continue to strengthen over the following weeks as investors continue to limit their temperament for risk.

AUDUSD drops sharply to as low as 0.6988 level. Consolidation could be seen in a couple of days before breaking below 0.6988 level

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Identifying Trades with DailyFX 10.07.08 (Daily FX)

Tue, 07th of October, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook Yesterday the EURUSD continued it’s bearish momentum. The pair hit my short target at 1.3530 , even further, bottomed at 1.3442 and closed at 1.3486 .

The dollar rose against the Japanese yen late Monday night. The greenback rose to 101.93 yen from the 100.56 yen it bought in late afternoon trading. On Friday, the dollar was worth 105.35 yen.

The US dollar continued its extensive rally on Monday, but it had little to do with fundamentals given the plunge in US non-farm payrolls for the ninth consecutive month on Friday.

The Japanese yen was easily the biggest gainer of the day, surging 3.32 percent against the US dollar, nearly 5 percent versus the Canadian dollar, British pound, and Swiss franc, and a whopping 9.80 percent against the Australian dollar.

A broad drop in carry trades along with falling commodity prices weighed heavily on currencies like the Australian dollar, New Zealand dollar, and Canadian dollar.