Peter Bain Forex Trading Commentary for Friday February 24, 2006
Forexmentor.com Currency Trading Price Action:
Today, we had the continuation of a Steve Nison downtrend continuation pattern on the euro wherein, after MACD neutralized back up to its waterline, price was then freeto fall once more. And, fall it did, just before the London open/Tokyo close - evidenced by a trendline break on the 15 minute chart, and a death cross of the 10 and 80 EMAs on the 5 minute. Now, guess where price was headed next. It soughtout trendline support at higher levels - the hourly and daily charts, which provided support at the S1 level. Who could have guessed? Given the picture-perfect unfolding of the downtrend continutation pattern (leg two, after price equilibrium orconsolidation - read, traders chopping wood)?
See today's chart at: http://www.forexmentor.com/campaign/feb2406.html
See sample AM Review at: http://www.forexmentor.com/sampler/feb2206.html
Forexmentor.com Forex Trading News:
Oil prices seem to be subsiding in anticipation of a build-up in U.S. stockpiles (this despite the disruption in Nigerian shipments), and there is some conjecture over whether or not the Federal Reserve will continue its tightening policy. Of course, financial companies and home builders are very much dependent on keeping a lid of interest rate increases. Low borrowing costs enhance the value of bonds held by banks,brokers and insurers, and increase demand for mortgages and loans.
That said, there is still a lingering concern about inflation. This after an index of economic indicators and the minutes of the Fed's latest policy meeting raised the spectre of the Fed ratcheting up its benchmark rate in March and May, now at 4.5%. A government report showed last month's increase in consumer prices, excluding food and energy, was pretty much in line with economists' estimates, and even less than forecast.
Where oil prices go, so too goes the Canadian dollar, as Canadian exporters price oil in U.S. dollars, and convert the proceeds to the local currency.
Almost a fifth of Nigeria's output remains shut down, after rebels attacked a terminal earlier in the week. Oil pricing is very much at the mercy of speculation over supply versus the world situation.
Today, we had the continuation of a Steve Nison downtrend continuation pattern on the euro wherein, after MACD neutralized back up to its waterline, price was then freeto fall once more. And, fall it did, just before the London open/Tokyo close - evidenced by a trendline break on the 15 minute chart, and a death cross of the 10 and 80 EMAs on the 5 minute. Now, guess where price was headed next. It soughtout trendline support at higher levels - the hourly and daily charts, which provided support at the S1 level. Who could have guessed? Given the picture-perfect unfolding of the downtrend continutation pattern (leg two, after price equilibrium orconsolidation - read, traders chopping wood)?
See today's chart at: http://www.forexmentor.com/campaign/feb2406.html
See sample AM Review at: http://www.forexmentor.com/sampler/feb2206.html
Forexmentor.com Forex Trading News:
Oil prices seem to be subsiding in anticipation of a build-up in U.S. stockpiles (this despite the disruption in Nigerian shipments), and there is some conjecture over whether or not the Federal Reserve will continue its tightening policy. Of course, financial companies and home builders are very much dependent on keeping a lid of interest rate increases. Low borrowing costs enhance the value of bonds held by banks,brokers and insurers, and increase demand for mortgages and loans.
That said, there is still a lingering concern about inflation. This after an index of economic indicators and the minutes of the Fed's latest policy meeting raised the spectre of the Fed ratcheting up its benchmark rate in March and May, now at 4.5%. A government report showed last month's increase in consumer prices, excluding food and energy, was pretty much in line with economists' estimates, and even less than forecast.
Where oil prices go, so too goes the Canadian dollar, as Canadian exporters price oil in U.S. dollars, and convert the proceeds to the local currency.
Almost a fifth of Nigeria's output remains shut down, after rebels attacked a terminal earlier in the week. Oil pricing is very much at the mercy of speculation over supply versus the world situation.
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