Global Financial crisis

This is an informative documentary on how the global financial crisis took effect.

Enjoy!!!!

This week trading tips

With the massive flight of safety in the financial markets,the US dollar has seen massive gains in the last 12 days of trading out performing most of the currency pairs tremendously. It is only the Japanese Yen that has managed to out do the Dollar which could only mean that Yen pairs are quickly on the down trend.With all the fundamental news especially from the Euro which continues to signal further losses against the Green Buck and the British pound which saw a massive move lower with the BOE change in stance to much more dovish outlook,technical analysis may have a different outlook towards the currencies this coming week.We might see some corrections with the candle stick formations on the daily and the weekly charts.

A bullish bar on the daily chart at the end of the week may signal some impending strength by the Euro for a small correction before reverting to its bearish momentum.There are still too many issues especially with Greece and Spain that recorded massive capital outflow from its banking system signalling fear by investors on the outcome that may befall on its Euro counterpart.A bullish bar formed Friday which may see some bullish or sideways market this week before continuation down.

There is some divergence on the Daily chart with the RSI.The two currency move more or less in the same way being neighbors but price action from last week may indicate some correction before continuation as well.

 Cable formed some sought of a pin bar from the 50% retracement fib from Aprils highs that was unable to get past the 200 Moving average.A break above this may be some sign of a correction but we will wait and see how it pans out.

And finally,the Canadian dollar has broken an ascending trend line on the weekly charts and is right at the 61.8% fib line taken from the march highs and late last years lows.A break below this fib level may signal further strengthening of the Yen which has been very impressive in the last few trading days. 
This in my opinion may offer some great trading opportunities this coming week .Good luck trading out there and stay safe.

Yen Pairs

A couple of price set ups on the weekly chart on the Yen pairs for those who are interested in checking them out.The Yen has been strengthening since last week as a result of flight to safety especially from Europe that continues to see more and more economic turmoil on member states. Euro/Jpy has some divergence on the stochastics that may or may not play out.It is also at the 61.8 fib level next to some support at 102.66.This week holds some major European GDP releases that may impact the market tremendously.Lets see how it all plays out.

The Nzd/Jpy  has more or less the same set up and may be a great play with some divergence on the RSI standing at a support of 62.50 this morning.With growing concern on its poor performance, it may just have a little correction should risk appetite continue to fade and resume its bearish trend.Watching for a better price to go in short.



The Euro dollar on the other hand broke out short as we had anticipated in the earlier week for some good pips on both the Euro/Usd and the Usd/Chf.The run may continue should there be poor economical data this week while the Usd will continue to gather strength as the safe heaven currency.Nzd/Usd also has some divergence on the weekly chart and I am waiting this pairs to see if opportunity may present itself for some correction before continuation with the trend.Good luck trading this week and watch out for the GDP figures coming up.

Trade set ups

I will be looking at these trade set ups to get in should price confirm my directional bias:

The Euro is now tightly packed in a congestion area against the Usd and the Aud which saw some weakness earlier this week as a result of the 50 basis point cut by the RBA.A break out this congestion areas may see some good price movements.
In my opinion Eur/Usd is poised for a bearish break further down with all the turmoil in the region and the Spanish bank issues that have refused to go away.

 Usd/Chf which is the inverse of Eur/Usd is also in such a range and may be headed higher should the pair move above the 9150 resistance with a clear break.

Eur/Aud has been in a up trend since mid February and is currently in a congestion area.A break from this ascending triangle either way may be a good trade given the fundamentals in the two regions.

Eur/Nzd has seemingly formed an inverted H&S pattern on the 4 hr chart.However,follow through may be a bit tricky for this pair but only time will tell.

And finally,Cad/Chf is also in an ascending triangle on the daily chart.The Swiss Franc has been a little tricky to trade recently and I really don't like its price movements.But for those that trade this pair,fundamentals from Europe are very important right now especially any rhetoric from the SNB can really cause it to really move.

I will be watching this pairs for the next few hours as its already Thursday and who knows what will happen during the weekend.Good luck trading and happy pips.

Morning price action

The Pound seems to have lost some steam and is now looking to trade lower against the dollar since yesterday.It is also looking lower against the Yen which broke a major support area yesterday and is poised for 128 in the near future. However,there has been very little movement in the market for a while now as capital is still sited on the sidelines waiting for better opportunities.

Most pairs are also looking weaker against the Yen as its intervention by the Government did not yield the results they had been hoping for.They increased their asset purchase programme in the hope of creating a weaker yen as they had done before that saw the Usd/Jpy shoot up from the 77 to 84 area earlier in the year. For the short term, i am bearish on most yen pairs as I continue to watch for any events that may point otherwise for the long term .
The Euro seems seems to be trading stronger this week against most pairs and could be in a minor correction from last weeks price action.The Euro area is still under a lot of pressure with the downgrading of Spain and its rising unemployment as well as the strong resistance by the major countries towards bailouts for weaker countries.We are also watching the French election which may be a mover of price action especially since Nicolas Sarkozy is trailing his opponent from the socialist party.Lets continue to keep an eye on this events as they unfold.
 The RBA has just cut its interest rate by up to 50 basis points which is 25 basis points more than the expected cut this morning and has seen the AUD lose value against most currencies across the board. I will continue to follow this events and take care that my trades are not negatively affected by such events.
Good luck trading !!!!