Peter Bain Forex Trading Commentary for Friday March 10, 2006
Forexmentor.com Currency Trading Price Action
Today, I'm back to the euro. Why? Precisely for the same reason I've been talking about all week. I like to work with things that are going up - if only for a short period of time. In my analysis last night, I noticed a swing point at approx. the Tokyo open - which happens more often than not. I figured that was good for a short counter-trend trade. I didn't like what I saw on the hourly chart (read, MACD down), but my price projection saw 1920, or thereabouts. As it turns out, once we got through the bewitching hour of midnight ET, I realized that today was going to be an M1/M3 day, where the expected high was M3. That gave me an insight into where price was going. And, sure enough, that's where it hit the brakes. Who could have guessed? Meanwhile, from a longer-term perspective, the trend on the daily is still up, given the common sense demand (support) trendline is still being respected.
See today's chart at: http://www.forexmentor.com/campaign/mar1006.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Forex Trading News
It's a pretty safe bet that the Fed is done with rate increases in March or May. The Fed chairman will then more than likely take a wait-and-see attitude in July. As far as Japan is concerned, no matter how far the Bank of Japan goes with their rate moves, Japan will still have the lowest policy rate in the OECD. The guessing game calls for the Bank of Canada to raise its benchmark interest rate just one more time this year. That sentiment explains a lot in the recent weakness in the Canadian dollar. Manufacturers are loving it, as a lower loonie makes their exports more competitive.
GM and Ford are going to be cutting aggressively in the second quarter, and the rollover of the housing market should be in full swing by then. Watch out below!
OPEC is standing pat, leaving its output ceiling unchanged due to growing threats to world oil supplies and concerns that a run in prices could hurt the global economy, and cause a decline in petroleum consumption.
Today, I'm back to the euro. Why? Precisely for the same reason I've been talking about all week. I like to work with things that are going up - if only for a short period of time. In my analysis last night, I noticed a swing point at approx. the Tokyo open - which happens more often than not. I figured that was good for a short counter-trend trade. I didn't like what I saw on the hourly chart (read, MACD down), but my price projection saw 1920, or thereabouts. As it turns out, once we got through the bewitching hour of midnight ET, I realized that today was going to be an M1/M3 day, where the expected high was M3. That gave me an insight into where price was going. And, sure enough, that's where it hit the brakes. Who could have guessed? Meanwhile, from a longer-term perspective, the trend on the daily is still up, given the common sense demand (support) trendline is still being respected.
See today's chart at: http://www.forexmentor.com/campaign/mar1006.html
See sample AM Review at: http://www.forexmentor.com/sampler/
Forexmentor.com Forex Trading News
It's a pretty safe bet that the Fed is done with rate increases in March or May. The Fed chairman will then more than likely take a wait-and-see attitude in July. As far as Japan is concerned, no matter how far the Bank of Japan goes with their rate moves, Japan will still have the lowest policy rate in the OECD. The guessing game calls for the Bank of Canada to raise its benchmark interest rate just one more time this year. That sentiment explains a lot in the recent weakness in the Canadian dollar. Manufacturers are loving it, as a lower loonie makes their exports more competitive.
GM and Ford are going to be cutting aggressively in the second quarter, and the rollover of the housing market should be in full swing by then. Watch out below!
OPEC is standing pat, leaving its output ceiling unchanged due to growing threats to world oil supplies and concerns that a run in prices could hurt the global economy, and cause a decline in petroleum consumption.
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