Forex Bull

Risk aversion paired with narrowing demands for carry trades pushed the GBPJPY to its lowest level in over a decade, and the downward trend is likely to hold as we head into the New Year as investors continue to curb their appetite for risk.

Forex markets were quiet in Asian trading, with the Euro was confined to a narrow, 70-pip range below the 1.3980 level.

Student?s Question: What are the first signs to tell you that you are in the beginnings of a range bound market? How many tests of support/resistance

Read the original:  Identifying Trades with DailyFX 12.24.08 (Daily FX)

The British Pound has fallen so sharply in 2008 that parity with the Euro isn't that far-fetched. The problem is that the UK economy now closely mirrors that of the US, minus the perceived "safe haven" aspects. In fact, the UK now has a twin deficits problem of its own, with a trade imbalance that exceeds 4% of GDP and government spending set to rise in response to the credit crisis.

Wed, 24th of December, 2008 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD made another indecisive market yesterday, formed another Doji candlestick formation on daily chart, and the pair still trapped in rectangle formation on hourly chart. We are still in consolidation and the bias remains bearish. On daily chart we can see that the pair made 4 lower highs for the last 4 days and CCI just cross 100 line down suggesting a potential bearish view.

The dollar traded mixed against major currencies Tuesday in light holiday trading.

Wall Street pulled back again Tuesday in muted trading ahead of the holiday, as another round of reports showed further deterioration in the housing market and broader economy.

The dollar rose against the pound Tuesday after a report showed the U.K.

To all of the readers of this blog, i wish everyone a safe and joyous holiday! I will not be posting until Monday December 29th.