Forex Bull

Positioning in favor of the US Dollar continued to prove lucrative last week: floating short positions against the Euro and the Australian Dollar added to previous gains while new exposure selling the Canadian Dollar yielded over 450 pips.

Minutes from the last meeting of the Bank of England headline the economic calendar in European hours. The British Pound rose against the US dollar in Asian hours to test psychological resistance at 1.40.

We are certainly going to see further downside for the sterling, which may test $1.36 against the dollar in the short-term, says Timothy Connors, corporate FX manager at Custom House.

There are many different ways to approach the Foreign Exchange Market in order to make huge profits. No one single method is the best method in order to make money in this financial market, it is based solely on the person which to choose according to his or her preference and knowledge about the Forex

Asian stock markets dropped Wednesday, with Japan’s benchmark down nearly 1 percent, as concern that rising bank losses will cripple the world economy overshadowed the inauguration of U.S.

Student?s Question: I am referring to the idea that is expressed in the webinars where we are told for example that: 1. when the price reaches a low, for example the level of the support or, the crossing upwardly of some oscillator of the 20 level then one can enter a long position and set a stop at the most recent low; 2. in an upward trend, when the price reaches a low , or for example there is a crossover below the 80 level in the stochastics case, one should short the position and place a stop at the most recent high.

Unemployment in the U.K. economy is expected to increase by another 80,000 adding to the 75,700 seen in November. It would be the largest increase in claims since March 1991, as companies start to increase layoffs in order to slash costs.

See the rest here:  Identifying Trades with DailyFX 01.21.09 (Daily FX)

There could be some dollar short-covering after the markets stabilize today, predicts Lee Wai Tuck, currency markets strategist at Forecast. He gives his dollar direction for 2009, with CNBC’s Karen Tso.    Watch Video MEDIA: VIDEO Permalink

Posted By: Patti Domm The ailing banking system is at the top of the Obama Administration’s agenda Wednesday, after worries about the sector Tuesday handed the stock market its worse Inauguration Day losses ever.     Read More Topics: Currencies | Stock Market | Investment Strategy Sectors: Oil and Gas Companies: Abbott Laboratories | Coach Inc | PNC Financial Services Group Inc | eBay Inc | Apple Inc | PNC Bank Corp. | Noble Energy Inc.