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.

The British Pound Approaches Support

The British Pound has been selling off rather sharply over the past 2 months but is now approaching a significant area of support. If you measure the rally from July 2001 to the high made in 2007, you will see that we are now at the 50% retracement level. The Pound is also approaching the low that was made in 2005 which turned out to be a major support area. It will be interesting to see how this currency handles this significant zone of support in the weeks to come.

Canadian Dollar Is Testing Major Support

The Canadian Dollar has been in a bull market for the past 6 years and is now testing a very significant uptrend line. You'll notice in the above weekly chart that the Canadian Dollar has closed slightly below the trendline which may be a sign that further weakness can be expected for this currency.