Awaiting BoE Minutes

Good morning forex traders. Today we have the BoE minutes due out which an expectation of 7-2 in favour of keeping the rates unchanged.

As we have all witnessed the Dollar has accelerated to the upside recently. The brakes are on but for how long? The trend line resistance shown on the weekly Dollar Index chart below has been tagged. The daily is giving us a minor divergence and we hit the figure.


Advanced Get Weekly Dollar Index.


Daily Pivot Points from Dynamic Trader Forex Toolkit.

Send Analysis To a Friend

Good trading.

Forex Analyst
Javid Shaik

Majors Reverse

Good morning forex traders. Most of the majors have reversed and gave the reversal signal with a candlestick yesterday.

Further bad Japanese data is fueling the concern that Japan is heading for a recession. We must not forget that the US concerns for a recession is still very much a focus. The sub prime mortage crisis overshadowed the US Trade deficit.

The very oversold Euro has shown a degree of strength with some buying after the technicals showed a reversal. Yesterday this pair sank further and if aggressive traders are looking for long positions here then look for an entry that requires minimal stops. Remember, although this pair is oversold it is still against the trend.

The Sterling is not looking too healthy. It's recent collapse of the trend line and support level on the weekly time frame could be a fake breakout but needs to be watched for a possible further decline in the near future. Convergence is prominent but this might suggest only a minor pullback. If the pair continues to decline then the next big support zone is 1.8500.



Source: ESignal. Weekly Pound Dollar Advanced Get Chart.

The Dollar Index may help with the confirmation of the Euro and the other majors reversals. The weekly forex chart below shows the Index in a long term downtrend with a reversal to the resistance trendline.


Source: ESignal. Weekly Advanced Get Dollar Index Chart.

Send This Analysis To A Friend

Below is todays pivot points for the major currencies.


Source: Dynamic Trader Forex Toolkit.


Good trading.

Forex Analyst
Javid Shaik

The Loonies Breakout

Good morning forex traders.

The Loonie has had a breakout and reached the 1.0500 zone and finding some resistance there this morning. Although a possible pullback maybe possible, as dynamic traders this is not a good trade to enter into at this point as we do not have our confluence of events.

Yesterday the USDJPY has also broken out from the resistance level and we have been stopped out on our second position on this trade. Price reached just less than the figure and is at 109.41 at the time of writing.

We have rate decision and Trichet talking today so you may want to stand aside. Both the ECB and UK are expected to leave rates unchanged.

The falling oil prices is supporting the Dollar strength. Below is the weekly chart of the Dollar Index Futures. Notice the long downtrend and trendline resistance.


Weekly Dollar Index Futures Advanced Get chart.

Below is the daily crude oil chart. Notice the trendline break with divergence at the figure.


Daily light cride oil Advanced Get chart.



Above are today's daily pivot points.

Send Analysis To a Friend

Click Here For FREE FXCPS Update Notifications!


Good trading.

Forex Analyst
Javid Shaik