Forex - British Pound

I'd like to take a long term view of the British Pound to help put things into perspective. In the above chart you will notice that the rally which began in January of this year has abruptly stopped dead in its tracks at the 170.00 level. What is so significant about the 170 level? Well if you look back a few years you will notice that a major low was made in Novemeber 2005. This low is now playing as resistance and is why the British pound has stopped at this level.

My personal opinion is that the British Pound will rally due to the 8 year cycle which indicates that this currency should be in an uptrend for the next several years. Having said that, I will look for buy signals to position myself in the direction of the major trend.

Australian Dollar - New Highs For The Year

The Australian Dollar broke out of its recent consolidation establishing a new high for the year. The Australian Dollar is one of the strongest currencies over the past few months and is clearly in a strong uptrend.

Forex - Bear Flag In The Euro

The Euro is clearly in a downtrend and has been consolidating forming a bear flag. The Swiss is already trading below last month's low and it looks like the Euro will do the same. If the currencies begin another leg down, I'll post my downside projections for the Euro in the days to come.

Forex - Canadian Dollar Makes Multi Year Lows

Exactly one year ago the Canadian dollar was making multi year highs but as you can see in the above chart this currency is now making multi year lows! Over the last four weeks the Canadian dollar has been selling off sharply literally falling out of bed. It looks like a bounce is due which may offer another shorting opportunity if things set up.

U.S Dollar Continues To Move Higher

The U.S. Dollar continues to rally making a new high for the year. If you look at the big picture in terms of how far the dollar has rallied, you will see that the greenback is at the 50% retracement level of the 2005 - 2008 bear market.

The dollar has good momentum on the upside and I see no resistance nearby. As of now I have no position in the dollar but I'd like to see a nice pullback so I can get long this currency at some point.