Archive for July, 2009
Forex Trading Tips: Fighting To Victory
Fighting To Victory
When rational expectations economists create their model of the average man they envision a person with foresight of Einstein, the patience of Mahama Gandi and the memory of IBM’s Big Blue. Those are not my words, but rather the writings of Richard Thaler and Cass Sunstein in their new book entitled [...]
Outlook for Australian, Canadian and New Zealand Dollars
I was on CNBC this evening talking about the outlook for the Australian, Canadian and New Zealand dollars:
Forex Trading Tips: Lifting The Stop
Lifting The Stop
In their book Sway, authors Ori and Rom Brafman describe the series of events surrounding the worst airline crash in Dutch history. Piloted by one of the most accomplished and experienced aviators in the world Captain Jacob Van Zanten, KLM Flight 4805 was on its way to Canary Islands. However a [...]
Interview on Bloomberg: USD/JPY and EUR/USD
I was on Bloomberg last night talking about USD/JPY and the EUR/USD. Click on the image to watch the clip
Floor Caving Under USD/JPY?
The 95 price level for USD/JPY has served as very strong support over the past few months and now that the currency pair is trading well below that price level, it appears that the floor is caving in.
The following chart illustrates the significance of the breakdown. USD/JPY is trading in sell zone, [...]
Correlation Between EUR/USD, USD/JPY and Stocks
Over the past few years, traders have become accustomed to the idea that the day to day moves in stocks impact currencies. When equities sell off aggressively like they have today, the U.S. dollar usually strengthens across the board as investors pile into the low yielding safe haven currency. When equities stage a strong rally [...]
Outlook for U.S. Dollar, Economic Outlook and Risk Aversion
I was on Fox Business earlier this afternoon talking what is moving the dollar and the short / medium term outlook for the currency market. Here is the clip, I am the first interview.
Relationship Between AUD/USD and ISM
Here is an interesting chart illustrating the correlation between the AUD/USD (orange line) and U.S. manufacturing ISM (white line). If you surprised by this relationship, don’t be because AUD/USD is frequently perceived as a high beta, hyper cyclical currency. Therefore a recovery in U.S. manufacturing should equate to a recovery in the [...]
Forex Trading Tips: Lessons From the 00 Setup
Lessons From the 00 Setup
As we pass the half year mark I think it a good time on this holiday weekend to review the round number set up and see what lessons can be drawn from its various permutations. The first and foremost lesson is that the setup in its raw form is NOT a [...]
