Ahead of the FOMC tomorrow, it can be difficult to know what to trade, and what to avoid. For eurusd, price action has been a bit frustrating with the pair having moved off support at 1.3750 earlier this afternoon and now trading between 1.3785 and resistance at 1.3810.
However, there has been a nice trade in the euraud, which brings me to my tip. If you are only focused on eurusd - it is useful to have charts open of other euro pairs (and not just the eurjpy). What this achieves is a…Continue
With month & quarter end the USDJPY weekly chart just about sums up current market mood, namely indecision. As we can see on the chart the currency pair is the latter stages of developing a classic pennant pattern (as shown by the dotted lines).
A pennant is a chart pattern which is formed when a…Continue
Most forex traders are familiar with the US Dollar Index, and some even with the index for the Japanese Yen, to help them determine market sentiment and direction. However, few forex traders consider having the VIX as part of their trading tools, believing that this index is irrelevant to the currency markets.
This, in my view, is both erroneous and short sighted, as the VIX measures the level of volatility in the market, as it calculates the implied volatility of options on the…Continue