Forex Bull

Student?s Question: This is a 4hour chart of the GBP USD over the past few weeks.

The Bank of Japan offered a somewhat bizarre 20bp rate cut, brining borrowing costs to 0.30%. The Euro and Pound saw blistering volatility in overnight trading, with the latter moving a whopping 267 pips in just 2 hours.

Fri, 31 October 2008 by Johan Kriek (jkriek@fxinstructor.com) Key Events: – BoJ rate decision still awaited – Eurozone inflation, unemployment – US PCE, Chicago PMI Probability Studies: Please note that the markets are very mixed as one part wants to shy away from risk and the other waits for a light at the end of the tunnel. We can clearly see this in the probability studies Therefore the markets/probabilities can change in an instant so please join us in the Live Trading Room for updates Johan Kriek

View original here: Identifying Trades with DailyFX 10.31.08 (Daily FX)

Fri, 31th of October, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD attempted to push higher yesterday. After broke the 1.3200 resistance (23.6 Fibo from 1.6038 to 1.2333 ), the pair topped at 1.3289 , but further bullish correction was rejected as the pair quickly fell, hit the bottom at 1.2804 and closed at 1.2875 . Although I think we might see another bullish attempt, this upside rejection should keep the bearish scenario intact

The dollar recovered against the pound in late New York trading Thursday night.

Just got back from taking my son out for his second “trick or treating” – it was pretty cool seeing him go up to the doors and get the candy; I think it will be even more interesting in a few hours when all the sugar kicks in.

Forex carry trades continued to rally on Thursday, as the Japanese yen tumbled more than 3 percent versus high-yielding currencies like the New Zealand dollar and Australian dollar, while falling over 1 percent against the US dollar and British pound This had mostly to do with a further improvement in risk appetite, as the DJIA and S&P 500 rose over 2 percent.

The British pound slumped through most of the day as the 61.8 percent fib of 1.7516-1.5257 at 1.6653 provided ample resistance for GBP/USD. UK data didn?t bode well for the pair either, as UK Nationwide home prices dropped 14.6 percent in October from a year earlier, the worst reading since records began in 1992.

After running in to resistance at 1.3250, EUR/USD pulled back sharply throughout the day to test support at the 50 percent fib of 1.2328-1.3296 at 1.2813. The pair managed to recover above 1.2900 later in the day, but the fundamentals of the Euro-zone remain resoundingly bearish.