EURUSD direction

This week there will be some news on the Euro Zone Industrial Production on Monday.  Followed on Tuesday with German ZEW survey and Euro Zone ZEW survey.  Together with the US Advance Retail Sales.

There's a fundamental view that the EURO is under some financial turmoil.

The technicals are showing that it is currently moving sideways.

If you're an Elliot Waver then the current wave can be interpreted as a wave 3 of 3 towards the downside.Wave 3 is the largest and aggressive wave movement.

I have a short position opened on 1.274.  Now it's 1.266.  Waiting for the right moment to close this position and get a couple of pips from the market.  Who knows what news will bring us next week.  If it breaks below 1.25 I will short again as this is the the next low on 13 July 2010.

Watching the USD this week

This coming week will be eventful in terms of news.

Bernanke has announced that the Fed will support the markets if required.  This strengthened not only the US stock markets but the US Dollar for Friday's close.

Will probably not trading this week until Non Farm Payrolls is announced.

Chatter on the websphere seems to imply that there is an opportunity to long the EUR/USD.

Will not be trading the AUD/USD until the GDP results are announced this week.

Small Investors Appear to be Fleeing the Market

A news article from the New York Times today is warning of a worrying sign that money is moving out of stocks and into bonds.

If this trend continues there could be repercussions on the forex market. It's hard to tell what might happen but at least it is something to watch out for.

At the moment, sentiment in the US stock markets and USD appear to go in opposite directions. If the US stock market goes up, the USD goes down. Vice versa.

Will be interesting to watch what unfolds in the coming weeks.

Read the article here.

Australian Political Uncertainty Will Affect AUD/USD Monday

Australia just had an election over the weekend 21 August 2010.

The results are neck and neck between the Labour and Coalition parties. A hung parliament has not occurred in this country since 1940. There is sentiment in the news that this uncertainty will cause a sell off in the markets and the Australian Dollar.

This is good news for people who have shorted before the weekend.

I am hoping to maximise the number of pips next week and hope to close my AUD/USD position before the election results are announced.

Short the AUD/USD

The EUR/USD and AUD/USD has headed upwards on Friday however not strong enough to break through their highs of 1.333 and 0.922 respectively.

The Elliot Wave view is that the current forex characteristics suggests that the USD will strengthen in the coming weeks or months.

Other views on the AUD is that as a commodity currency, the world's insatiable appetite for resources will keep this cuurency strong together with the CAD.

I have placed a short on the AUD/USD in the meantime at 0.8984. I will feedback here how succesful this trade is. The AUD/USD is now 0.8938.

The Forex Spectator

I have set up the Forex Spectator to help provide information for everyone who's interested in Forex.

This blog is for the beginner and moderate experience forex traders who want to get an edge on their trading. There's lots of tools, methods and information out there. I will focus on a targeted set of all of these. Sometimes more isn't always better.

Have fun with the blog and happy trading.

Ken