Peter Bain Forex Trading Commentary: Wednesday February 15, 2006
Forexmentor.com Price Action
The pound recovered yesterday ~at the London close, after a significant swoon in price, that started when price was severely overbought just before the London open. That turnaround was facilitated by positive divergence on both the MACD histogram and Stochastics. Price, since then, headed north-ward, exactly as the price projection dictated. After some ensuing weakness coming into today's session, the GBP/USD pair made a run for the expected high (M3) on an M1/M3 day - the second day in a row for that M paradigm.
Of course, that resistance point did not hold, and even higher ground was achieved. The trend is still down on the daily chart, but we could be witnessing a change in that attitude, as a demand/support trendline is now deing respected.
See today's chart at:http://www.forexmentor.com/campaign/feb1506.html
See sample AM Review at: http://www.forexmentor.com/sampler/feb1406.html
Forexmentor.com News
Traders are fretting that Ben Bernanke, the new chairman of the U.S. Federal reserve, will raise short-term interest rates higher than originally thought - this due to a healthy labor market in the U.S. Of course, such a tough stance on inflation would be economy-negative. A slowdown there would most certainly drive the energy and metals components of the Canadian economy down as well.
The unemployment rate in the U.S. is now at a four-year low of 4.7%, giving rise to the notion that the Fed will want to maintain its inflation-fighting stance.
The U.S. yield curve is also troubling, in that short-term bond yields are rising considerably above long-term bond yields. This phenomenon is called a yield curve inversion. Whenever this occurs, a recession is not far behind.
The pound recovered yesterday ~at the London close, after a significant swoon in price, that started when price was severely overbought just before the London open. That turnaround was facilitated by positive divergence on both the MACD histogram and Stochastics. Price, since then, headed north-ward, exactly as the price projection dictated. After some ensuing weakness coming into today's session, the GBP/USD pair made a run for the expected high (M3) on an M1/M3 day - the second day in a row for that M paradigm.
Of course, that resistance point did not hold, and even higher ground was achieved. The trend is still down on the daily chart, but we could be witnessing a change in that attitude, as a demand/support trendline is now deing respected.
See today's chart at:http://www.forexmentor.com/campaign/feb1506.html
See sample AM Review at: http://www.forexmentor.com/sampler/feb1406.html
Forexmentor.com News
Traders are fretting that Ben Bernanke, the new chairman of the U.S. Federal reserve, will raise short-term interest rates higher than originally thought - this due to a healthy labor market in the U.S. Of course, such a tough stance on inflation would be economy-negative. A slowdown there would most certainly drive the energy and metals components of the Canadian economy down as well.
The unemployment rate in the U.S. is now at a four-year low of 4.7%, giving rise to the notion that the Fed will want to maintain its inflation-fighting stance.
The U.S. yield curve is also troubling, in that short-term bond yields are rising considerably above long-term bond yields. This phenomenon is called a yield curve inversion. Whenever this occurs, a recession is not far behind.
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