Uncertainty in the Markets

Turn the tv on, flip over to Bloomberg and you will hear nervous comments regarding the equity markets. Open up the financial papers in today's papers and you read more fo what you have just heard. Speak with people and it is all doom and gloom. So what is happening on the currency markets? ABBA sang it perfectly. Money Money Money!

We trade the currency markets because we almost always have an opportunity to trade. In addition, a very positive reason to trade the FX markets is so we dont walk around with a glum face all day.

The currency markets give us excellent opportunities and the emails / voicemails I have received from those I have personally mentored are pocketing good profits on certain currencies right now.

The Euro Dollar triggered a sell signal on my system but I have decided to ignore it and stand aside just for the moment as although the short term may look bearish the medium term still has a bullish look about it.

While the Euro is currently clawing it's way back up against the Dollar the EURGBP weakness from the figure after a bearish engulfing is worth watching for a possible reversal to the upside or a continuation down if the formation is a flag. If the formation is a flag then use our ESLT for an entry otherwise wait for 886 on a 123.

Lastly, Bernanke has told congress that inflation is too high and the top priority is to bring it down. He has also mentioned about a possible currency intervention. It's all great fun!

Good trading.

Forex Analyst
Javid Shaik