Today’s AUD/CAD buy
entry is done and what’s left is a lesson about trade selection, more
specifically, time frame selection.
The Dow’s triple digit rally following
Fed Chairman Bernanke’s second day of testimony is accompanied by a push to
90.00 on crude oil. July losses are being erased but before getting too bullish
at these levels there are a few things to consider.
First, the U.S. Dollar Index is not
falling too sharply on this rally. The index is finding buying support at the
83.00 major psychological level which is also five ticks from the 38.2% Fibonacci
Retracement at 83.05.
Second, the crude oil market is not
necessarily being driven higher solely on the risk appetite seen in the Dow but
rather a surprise drawdown in supplies.
Past performance is not indicative of
future results
The
Dow’s trading higher in to a layer of resistance that marks the high end of the
trading range and ultimately could be where the rally begins to exhaust.
Another troubling chart for bulls has
got to be the AUD/JPY. The aussie has been outpacing most currencies to the
upside and yet on a day where the yen should be weaker on the optimism equities
market, the pair sits below the 200DMA.
Past performance is not indicative of
future results
The
daily AUD/JPY broke higher though a near-term triangle pattern that had formed
but ultimately the momentum hit the selling pressure surrounding the 200DMA at 81.72.
Past performance is not indicative of
future results
The 200DMA will be an obstacle for
AUD/JPY bulls as the yen was uncharacteristically strong on a day that equities
rallied.
With the Dow reaching the range layer of
resistance, the dollar finding major psychological level support and the AUD/JPY
battling with the 200DMA, there is plenty of reason to see some near-term
exhaustion in the risk appetite seen in today’s market.
As an
active forex trader and Chief Currency Analyst for InterbankFX.com I do write
for a number of sites all over the web and I am happy to say that I will be
posting updates atwww.IBFXconnect.com. MyActivity Boardwill feature the trades from my trading account as well as
intraday commentary.
Start the discussion! Questions?
Comments. Leave it here at the Daily Forex Trading Edge for Raghee to
personally answer. Using the icons at the top of the article to forward this
update to a friend via email, post it on Google or Facebook or simply print it
out for reading later.
Forex trading is one of
the riskiest forms of investment available in the financial markets and
suitable for sophisticated individuals and institutions. The possibility exists
that you could sustain a substantial loss of funds and therefore you should not
invest money that you cannot afford to lose.
Posted By:
Raghee Horner
Raghee Horner, chief currency analyst for IBFX, provides her personal daily trading tips and insights through Dailyforextradingedge.com. An experienced trader with over fifteen years in the markets, Raghee is the co-founder of EZ2Trade Software and has taught her brand of technical analysis and charting strategies to students all over the world. She is an international author and has taught currencies, futures, and equities trading for over a decade.
Today’s AUD/CAD buy entry is done and what’s left is a lesson about trade selection, more specifically, time frame selection.
The Dow’s triple digit rally following Fed Chairman Bernanke’s second day of testimony is accompanied by a push to 90.00 on crude oil. July losses are being erased but before getting too bullish at these levels there are a few things to consider.
First, the U.S. Dollar Index is not falling too sharply on this rally. The index is finding buying support at the 83.00 major psychological level which is also five ticks from the 38.2% Fibonacci Retracement at 83.05.
Second, the crude oil market is not necessarily being driven higher solely on the risk appetite seen in the Dow but rather a surprise drawdown in supplies.
Past performance is not indicative of future results
The Dow’s trading higher in to a layer of resistance that marks the high end of the trading range and ultimately could be where the rally begins to exhaust.
Another troubling chart for bulls has got to be the AUD/JPY. The aussie has been outpacing most currencies to the upside and yet on a day where the yen should be weaker on the optimism equities market, the pair sits below the 200DMA.
Past performance is not indicative of future results
The daily AUD/JPY broke higher though a near-term triangle pattern that had formed but ultimately the momentum hit the selling pressure surrounding the 200DMA at 81.72.
Past performance is not indicative of future results
The 200DMA will be an obstacle for AUD/JPY bulls as the yen was uncharacteristically strong on a day that equities rallied.
With the Dow reaching the range layer of resistance, the dollar finding major psychological level support and the AUD/JPY battling with the 200DMA, there is plenty of reason to see some near-term exhaustion in the risk appetite seen in today’s market.
As an active forex trader and Chief Currency Analyst for InterbankFX.com I do write for a number of sites all over the web and I am happy to say that I will be posting updates at www.IBFXconnect.com. My Activity Board will feature the trades from my trading account as well as intraday commentary.
Start the discussion! Questions? Comments. Leave it here at the Daily Forex Trading Edge for Raghee to personally answer. Using the icons at the top of the article to forward this update to a friend via email, post it on Google or Facebook or simply print it out for reading later.
Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.
Raghee Horner