Peter Bain Forex Trading Commentary for Tuesday March 7, 2006
Forexmentor.com Currency Trading Price Action
The tide turned on the Swissy at 7 pm ET Sunday, March 5/06, wherein we witnessed a spinning top on the hourly chart and a hammer - both fairly pronounced. Since then, it's been up-up-and-away. When things get on a roll with a currency pair, it's then that you want to use an oscillator like Slow Stochastics to pick your entry points - i.e., buy the dips in an uptrend, when STO goes oversold. One of the reasons I picked the USD/CHF today over the EUR/USD and GBP/USD is that I personally find it easier to work with an uptrend (the latter two going down). I just find it easier to think that way. And, why not. The 'three muskateers' move in tandem - but differently, depending on how they're paired with the USD. This business doesn't have to be all that difficult. So, why not just go with the flow, and find situations that are easy to relate to.
See today's chart at: http://www.forexmentor.com/campaign/mar0706.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Forex Trading News
Get ready for more aggressive monetary tightening in the U.S. and elsewhere. Interest rates appear to be headed for higher ground in a number of countries.
The ECB raised rates, as expected, amid concerns from Jean-Claude Trichet, the ECB head, about inflationary risks. Meanwhile, core inflation is also picking up in Japan (fastest since 1998). It would seem as though Japan is about to leave seven years of deflation behind and, with that, say good bye to its five-year super-easy monetary policy, a.k.a. its quantitative easing policy. It is more than likely that the BoJ will adopt a more conventional interest rate policy at its March 8-9/06 meeting.
The Canadian dollar continues to draw strength from stellar economic data, leaving the BoC no other option but to consider hiking rates further. Lately, the loonie seems to have developed a mind of its own, bucking energy price movements.
The tide turned on the Swissy at 7 pm ET Sunday, March 5/06, wherein we witnessed a spinning top on the hourly chart and a hammer - both fairly pronounced. Since then, it's been up-up-and-away. When things get on a roll with a currency pair, it's then that you want to use an oscillator like Slow Stochastics to pick your entry points - i.e., buy the dips in an uptrend, when STO goes oversold. One of the reasons I picked the USD/CHF today over the EUR/USD and GBP/USD is that I personally find it easier to work with an uptrend (the latter two going down). I just find it easier to think that way. And, why not. The 'three muskateers' move in tandem - but differently, depending on how they're paired with the USD. This business doesn't have to be all that difficult. So, why not just go with the flow, and find situations that are easy to relate to.
See today's chart at: http://www.forexmentor.com/campaign/mar0706.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Forex Trading News
Get ready for more aggressive monetary tightening in the U.S. and elsewhere. Interest rates appear to be headed for higher ground in a number of countries.
The ECB raised rates, as expected, amid concerns from Jean-Claude Trichet, the ECB head, about inflationary risks. Meanwhile, core inflation is also picking up in Japan (fastest since 1998). It would seem as though Japan is about to leave seven years of deflation behind and, with that, say good bye to its five-year super-easy monetary policy, a.k.a. its quantitative easing policy. It is more than likely that the BoJ will adopt a more conventional interest rate policy at its March 8-9/06 meeting.
The Canadian dollar continues to draw strength from stellar economic data, leaving the BoC no other option but to consider hiking rates further. Lately, the loonie seems to have developed a mind of its own, bucking energy price movements.
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