Forex Bull

Wed, 12th of November, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook After breakout to the downside from the triangle formation, the EURUSD continued it’s bearish scenario yesterday.

After I thought about today’s action and also the fact that we’ve been down four out of the last five days, the more I thought I don’t want to short right here. It is certainly possible we follow-through tomorrow to the downside, but this market hasn’t exactly been one that’s good at following-through on any action for a meaningful period of time

After a conspicuous absence despite some very poor economic numbers the last few days, the risk averse trader came back with a vengeance Tuesday in US markets as gloomy news of job cuts, more pleas for bailouts, and already weak investor sentiment from Asia and Europe took their toll. In the charts the sell-off has managed to turn hints of a possible recovery for the majors and their yen crosses in the 4-hour and daily charts into a reaffirmation of the short side of the market with new bearish crosses or a reentry of oversold levels.

Every day, equities, currency and bond traders weigh the good news with the bad to determine if they want to buy or sell. Today, there were just as many positive reports that should have helped to stabilize the markets but has instead failed to stem the bleeding in equities and currencies.

Fresh signs of economic weakness from China, Japan and Britain reinforced fears of a prolonged recession, and U.S. President-elect Barack Obama urged the Bush administration to back a second economic stimulus package and aid the ailing auto industry.

Gold and other commodities prices tumbled in tandem with the stock market Tuesday as more signs of economic weakness drove concerns about a slowdown in demand for raw materials.

After reversing hard yesterday to the downside, the stock market seemed to want to sell off some more today, as futures were lower and after gapping lower to start the session, stocks sold off hard for the first half hour or so of the session, getting below the recent lows it made around 900 on the S&P and 1600 on the Nasdaq. They moved sideways for a brief period around 10:00, but then drifted slowly lower throughout the rest of the morning, the lunch hour, and the beginning of the afternoon

Stocks in Brazil and Mexico were trading evenly at midday Tuesday even as shares fell around the globe, but the countries’ currencies struggled against the dollar.

Hi there fellow traders! Herewith is my daily video recap for November 11, 2008, in which I discuss what happened on the market today, in our Live Forex Trading Room . http://www.youtube.com/watch?v=yOI-TbHpHew Today’s Probability Studies can be found on our blog right here: http://blog.fxinstructor.com/11-november-probability-studies/ To learn more about the Live Trading Room , please click here .

The dollar resumed its climb against other major currencies for a second day in a row Tuesday as recession fears took center stage.