Forex trading has nearly come to a halt as investors have all eyes on the US government and the historical decision they're expected to make within the next few days to bail out Wall Street. The impact and influence of the Dollar becomes obvious in a time like this as markets driven by the USD are on standby. Without any kind of direction on the Dollar, investors have simply shut down their trading—and who can blame them? The soon to be passed Wall St. bail-out bill has changed the game, investors say. All that an investor has learned about his market now has to be unlearned and adjusted for this unprecedented—and what some view as unconstitutional—step by the government. And as congress has kicked this bill back and forth this week and Forex markets consolidate down to extremely technical ranges, it's obvious investors haven't heard anything from any side to give them confidence in the bailout, the government, the economy, or the Dollar. So, we stay flat, with just about everyone else, as we cautiously await a break in some direction—one way or another. Here are some pairs and marks we are looking as indicators of a possible break in direction...
EURUSD – The EURUSD pushed to the 62 EMA on D1 charts on the initial announcement of the bail out. That line has held and pushed the EURUSD back down into the 1.45-1.47 range. A break of the 62 EMA should indicate that investors have finally bet on Dollar weakness. Below 1.46, our outlooks shifts to EURUSD bearish.
AUDUSD – Swiftly rising and breaking past .85, the AUDUSD has since pulled back and traded tightly along the 200 SMA on H4. We look to buy above .8450 and sell below .8250.
USDJPY – We look to play a range of 106.60 and 104.90. Inside the range could yield some quality technical opportunities. Outside it could indicate the break in carry-based pairs.
GBPJPY – We expect the JPY quoted pairs to continue consolidating over the next few days. As the 62 EMA and 200 SMA squeeze, we expect a very short term range trade to be the only possibility to trade until a break of 197.50 or 194.15.
_________________________
John Rowa
Executive Director of Trading
+1 951 823 0686 - Tel
+1 951 823 0687 - Fax
JRowa@IntegrityFX.com
Forex Trading | Forex Signals | Live Forex Training | Currency Trading
Linear Mode
