Forex Bull

Risk aversion will pick up again in the currency markets, says Mitul Kotecha, head of global FX strategy, Calyon Hong Kong. He shares his outlook for the U.S

Student?s Question: As a new trader trying to identify a candlestick pattern I think is confusing because the page in lesson #2 shows them with or with out wicks and certain colors, then when you view a video you talk about the certain pattern but it might have wicks or be a different color.

Hi guys,  here’s what I see for today.

Discussing whether Special Drawing Rights, or SDRs, will replace the dollar as the world’s reserve currency, with Chris Loong, head of currency & asset allocation at State Street Global Advisors, speaking with CNBC’s Amanda Drury.    Watch Video MEDIA: VIDEO Permalink

Being contained by the mentioned support of 1.3416, EURUSD rebounds from 1.3418 level. However, lengthier consolidation is still possible in a couple of days and further pullback is expected to

One of my favorite trading strategies is based off of a type of price pattern called a ”flag”.  These are fairly common patterns to find and one of the reasons why I like them is that they are simple to trade.  They are pretty straight forward when it comes to entry, exits and stops.  Plus, they are based off the ideas of trend and support/resistance.  Basically, with a flag pattern, you would look for something that has had a sharp upward price movement and then has pulled back a bit.  After this pull back you would look to trade it as it begins to move up again or in other words it is resuming it’s trend. Take a look at the chart below of the CHF/JPY.  Notice the flag drawn on the chart above.  This would be an example of a flag pattern.  The entry would occur as the price moves above the resistance (red line) and the stop loss is placed just below the red resistance line.  Currently, we are seeing a lot of pairs on the hourly and 4 hour time frames that could be considered a flag type of pattern.  Of course you know that there is no sure thing in trading, but when you are using price patterns, you are making trade decisions based on 2 powerful tools – Trends and Support/Resistance.  Take some time to see what pairs you can find that are currently showing this type of price pattern.  There are several right now and don’t forget to register for the free webinar this Sunday!  See you there!

As China is responding to the demand shock by building out supply, Michael Kurtz, head of China research & China strategist at Macquarie Research tells CNBC’s Martin Soong why adding to capacity during this economic climate could be risky.    Watch Video MEDIA: VIDEO Permalink

Peter Akerley, president & CEO of Erdene Gold, expects commodities like molybdenum and aggregate to benefit strongly from government infrastructure spending and modernisation in China. He also tells CNBC’s Martin Soong the outlook for gold is positive.    Watch Video MEDIA: VIDEO Permalink

Last week, dollar traders and the broader market were surprised to see the Fed officially announce its intentions to buy Treasuries and double its purchases of mortgaged backed securities.

Thu, 26th of March, 2009 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook Patience. That is all we need right now