Fed's Decision

Good morning forex traders.

To try and combat the recession the Fed cuts it's rates as was widely expected. This in turn was Dollar negative but the stock market as you would have expected rallied at what was considered good news.

Those of you I have mentored have heard me use the term "the markets are moving at a measured pace". For the forseeable future get used to "quantitative easing".

From the rate cut being released the Euro headed upwards like a rocket. However, the Euro has met up with the value index so we could see a pull back in the near future.

Gold responded well to the Dollar weakness and the Loonie has continued it's decline since the triple top mentioned on both this site and the sister site.

Good dynamic trading...


Javid Shaik
Forex Analyst

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.

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Good trading.

Forex Analyst
Javid Shaik

Dollar Strength

Good morning dynamic traders. Since our July 25th GBPJPY forex analysis this cross has made 200-300 pips worth of profit. It is now sitting on a trend line support and those traders in this position should manage the trade and scale out.


GBPJPY chart courtesy of Advanced GET. Data provided by eSignal.

The USDJPY in contrast has been climbing although the momentum in the upward move has been very minimal. This is as a result of the resistance level 108.60 which we have tagged today for the third time. USDJPY is now at a triple top formation and we are looking for a breakout or breakdown at this point.

MACD has presented us with a divergence and Stochastics is overbought. An OCO order is a good choice here for those unable to check often. Alternatively take the direction of the confluence of events with a well placed stop loss

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USDJPY chart courtesy of Advanced GET. Data provided by eSignal.

As expected by many analysts, the rate decision yesterday was unchanged. The Dollar made some gains yeaterday as the market is convincing itself a bottom is in place and commodity currencies are weakening. Fears of a US recession is increasing even though the USD has strengthened be it at a much reduced pace.


Dow Jones Advanced Get chart. Data supplied by ESignal.

The Euro Dollar is in the middle of a downtrend as supports are breached but still shows greater momentum to the upside. As previously mentioned, a break of 1.53 can change the outlook.

Todays pivot points are below.


Dynamic Trader pivot points produced by Dynamic Trader Toolkit.

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Good trading.

Forex Analyst
Javid Shaik

UK Bank To Announce Losses

Good morning Dynamic Traders.

The better than expected NFP sent the Dollar higher against some majors on Friday.

The Strerling has dived against the Dollar at the open of the European session this morning based on rumours that a major bank is due to announce a big loss here in the UK. The Dollar is fairly steady at this point against the other currencies. At the time of this update the Cable is at session lows.

The daily Euro Swissy is in a triangle formation below. There is a set up here that is likely to make some good profits.


Advanced Get chart. Data from ESignal. Read more...

Look out for US ISM and the Fed's rate decision tomorrow and on Thursday's the BoE rate decision. These will be market movers and volatility will be high.

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Today's pivots are courtesy of Ash Shah.

Good trading.

Forex Analyst
Javid Shaik