What’s Happening This Morning in Foreign Exchange : The US dollar traded sideways yesterday, opening around 1.4890 at 8 am and closing around 1.4919 at 6 pm in New York. This is a tiny rise in the euro—but other currencies put in proportionately bigger gains, like the Canadian and Australian dollars, and chart-readers could easily talk themselves into seeing the makings of a correction.
Even the Pound was so oversold that it flattened on the hourly chart, and we got a buy signal for the yen in futures.
Important indicators like the MACD, relative strength and the awful stochastic oscillator all pointed upward.
It looked like a correction was about to occur, and since the US dollar’s move up was so big and fast, it might be justifiable to imagine the correction would be equally big and fast. Well, we have a corrective impulse but so far it’s not worth much—a few points, and hardly convincing. Those of us who jumped on the early warning signs of a correction are eating crow this morning—but don’t forget CPI at 8:30 am ET. There is still room for it to take off—or fail miserably.
That is why conditional trades were invented.
Happy Trading
Barbara Rockefeller
For the best exchange rates when Buying Euros visit IMS
Subscribe to:
Post Comments (Atom)
Posts
No comments:
Post a Comment