(Chart courtesy of FX Solutions' FX AccuCharts. Price on 1st pane, Slow Stochastics on 2nd pane; downtrend lines in red; 200-period simple moving average in light blue.) 8/20/2008 – EUR/USD – In what amounts to a continuing low-volatility consolidation in the major pairs, EUR/USD (an hourly chart of which is shown) has formed a short-term parallel downtrend channel. This gradual down-channel consolidation is expressing the remnants of the extreme downward momentum that has defined the pair in

- The GSEs have taken equity markets for a wild ride this morning. Indices quickly fell into negative territory on headlines indicating that FRE was seeking an immediate meeting with the US Treasury, sparking speculation that the long-heralded government bailout was at hand. FNM's CEO responded in a radio interview saying that the firm has yet to ask the Treasury for any assistance, asserting that it has more capital than ever before, helping stocks and more specifically financials recover

The buck was bid in London trading, boosted by poor economic news across the pond.  Euro-zone construction output slipped -0.6% in the month of June, taking the annual rate to -2.4% from a downwardly revised -1.6% the prior month.  Meanwhile, the Confederation of British Industry's monthly survey showed total orders plunged to -13 in August from -8 in July and +1 in June.  Export orders also fell to -9 from -7 the prior month. The Bank of England meeting minutes showed a split

Gold Touches 4-Session High as Credit & Monetary Stimulus Hits UK, US and China SPOT GOLD PRICES recovered one-half of an early 1.5% dip in London on Wednesday, trading $5 below Asia's four-session high of $818 per ounce as crude oil rose together with US stock futures. The Euro dropped a cent to the Dollar and the British Pound slipped almost 1.5¢. The Shanghai stock market closed more than 7% higher – its best one-day gain in four months – on rumors of a post-Olympics stimulus package

Action Insight Mid-Day Report Canadian Dollar Mildly Higher after Solid Retail Sales Canadian dollar is mildly higher in early US session after stronger than expected retail sales report from Canada. Headline sales climbed 0.5% mom in Jun, above expectation of 0.5%. Ex-auto sales growth was even more impressive, jumping 1.4% versus consensus of 0.5%. Leading indicators was unchanged for the second month in Jul. Technically speaking USD/CAD has already made a short term top at 1.0727 and more

Although the pair broke the support trendline that marked a succession of higher lows on the 4 hour chart we can still expect the 1.0900 area to provide enough support for a new move higher towards the 1.10 level. This is the consolidation range some of us of thinking of after the USD rally we had in the previous days, playing the range with carefull thought stops should provide a decent risk:raward ratio for both longs and shorts until we see some sort of momentum building up.

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EURUSD Extended the decline from 1.6040, historical high, 1.4659, 15 Aug low, to reach 1.4631 yesterday, ahead of the latest rebound through 1.4768 lower top to test 1.47941.4807 area. Reversal is now seen, scope for 1.4709/1.4686 zone to contain, ahead of a recovery extension to 1.4826/40, possibly 1.4952/80 on a break. Res: 1.4777, 1.4807, 1.4826, 1.4840 Sup: 1.4676, 1.4659, 1.4631, 1.4611   GBPUSD Extended month-long decline from 2.0162, to reach 1.8510 low on 15 Aug, ahead of

The GBP/JPY pair is beginning to consolidate into a range - from 202.50 to 205.65 While another re-test of support at 202.50 seems likely, if that level breaks and then re-tests successfully as resistance, then we may see a move down to 200.10 or 198.90 If we break above resistance at 205.65, we should go to 206.59 and then come back down to re-test 205.65 as support.  If price can hold above that level, then targets at 207.60, 209.18 or 210.75 come into view.

Yesterday, during US trading hours, stocks were down and oil had a sharp afternoon rally causing the dollar to weaken. Today, the dollar has taken back those losses and is up against all major currencies. The British pound has declined against the dollar and euro after Bank of England released minutes from its last meeting stating that inflation risks have eased and they are concerned about the risk of slow growth. Euro weakened versus the dollar on concerns that the euro-zone economy is

Chinese stocks gain the most in four months on speculation of a fiscal stimulus package Lehman Brothers Holding Inc. falls 13% as it searches buyers for its investment-management department and on speculation that third-quarter write downs will be worse than expected. AIG falls after Goldman Sachs said it is increasingly likely the company will have to raise more capital. Dollar weakens, as commodities rebound. Gold back above 800 USD/ounce Nato warns Russia that it could not draw a new line

EURO, JAP YEN and EURO-YEN --------------------------- Read our current comments and trade recommendations on EUR-USD, USD-JPY and EUR-JPY by registering at http://www.kshitij.com/fxthoughts/fxthoughts.shtml#register Our comments on Dollar-Swiss, Sterling Pound and Australian Dollar are given below --------------------- USD-CHF @ 1.0985/89.... Resistance at 1.1006 --------------------------------------------- R: 1.1000-25 / 1.1040-50 / 1.1150-75 S: 1.0950 / 1.0900 / 1.0840-20 / 1.0800 The Max

Forex News and Events: The Dollar retraced against the majors yesterday primarily on news that housing starts were down on previous months by 11%. The news that Tropical storm FAY could turn into a Hurricane before hitting U.S Shores sent crude Higher, as well as the news that Venezuela would ask OPEC for a quota-cut on daily production. The inter-market relationships are at work here as GOLD rose significantly passed $800/oz on this news. Furthermore, recent transactions in Gold have moved

Gold Gold finished trading in New York yesterday at $810.80, up $10.30 and silver was down 8 cents to $13.11. Both gold and silver remained firm in Asian trading but have given up some of the gains in early European trading. Gold is trading at $807.30/807.70 per ounce (1045 GMT). Gold, rebounding from oversold levels, rose for the second time yesterday and there was an outside day reversal to the upside which is

EURUSD : EUR saw a sharp recovery Tuesday reversing its intra day losses to close higher, its meaningful positive close since its decline through key support levels at the 1.4967/51 zone (its range highs from Nov’07 and Jan’08/.618 Ret) and the 1.5302/1.5283 zone, its May/June’08 lows. This technical development now leaves the pair targeting its August 12’08 low at 1.4814 where a break will aim at stronger levels at the 1.4967/51 zone and the 1.5302/1.5283 zone. Recoveries are seen as

Still consolidating its higher levels, the Greenback now is trade-ranging the majors in well-defined upper and lower limits - just about 150 basis points wide, with only a very slight downward tone. If this is the call to a downward correction phase, then it is hardly being heard and thus comes as a boon to the dollar bulls. What could destroy that picture? Commodity and oil prices, seemingly starting an upward correction phase after their steep fall from the highs. So far, however, the U.S.

Bank of England split The UK currency dipped to lows near 1.8530 in Europe on Tuesday, but resisted a further serious attack on the 1.85 level and pushed back above 1.8650 in US trading as the dollar retreated. Sterling generally drifted weaker to 0.7915 against the Euro. Overall sentiment towards the UK economy remains weak with further expectations of a sharp deterioration in conditions and it edged lower in European trading on Wednesday. The latest CBI industrial survey also deteriorated

While the Chinese equity rally has bolstered high yielding currency investments, USD-longs are taking a bit of a breather. MAJOR HEADLINES – PREVIOUS SESSION GE PPI MoM/YoY (Jul) out at 2.0%/8.9% vs. 0.7%/7.5% expected. SW Total Number of Employees YoY (2Q) out at 2.0% as prior. SW Industry Capacity (2Q) out at 90.4% vs. 91.4% prior. GE ZEW Econ. Sentiment (Aug) out at -55.5 vs. -62.0 expected. GE ZEW Curr. Situation (Aug) out at -9.2 vs. 10.0 expected. EC ZEW Econ. Sentiment (Aug) out at

The dollar saw stability on Wednesday but was off its recent highs as concerns about the US economy and lifting commodity prices took hold. The Dollar failed to extend gains against the Euro on growing sentiment that the ECB will cut interest rates. It was slightly lower at $1.4764 slightly off its 6 month low of 1.4730 on Tuesday. The Dollar is faring well because there is still concern over economic growth in other countries. The Fed is expected to keep rates unchanged while other central