Forex Market Updates & Commentary

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• The Week Ahead from FXDD
• ECB Trichet has no ne message on Inflation
• Fed sees significant improvement in Banks Capital
• REBROADCAST: Lesson 10: The Effective Use of Trend Lines, PART I
• GBPUSD finds its ceiling
• Moody’s downgrades 5 regional/local governments
• USDJPY tests support and finds buyers

The Week Ahead from FXDD Posted: 18 Mar 2011 01:56 PM PDT The Week Ahead from FXDD is available for downloading.  Be aware . Be prepared.

ECB Trichet has no ne message on Inflation Posted: 18 Mar 2011 09:18 AM PDT He continues to maintain strong vigilance against inflationary pressures He will “think deeply” about Japan Primary mandate is price stability

Fed sees significant improvement in Banks Capital Posted: 18 Mar 2011 08:01 AM PDT The Fed is releasing the results of a stress test of the 19 largest banks Recommends banks should limit dividends to 30% of capital Some banks will likely restart dividend payments Some will buyback stock and repay government capital Dividend payment promotes long term access to capital Firms expected to continue to increase capital base May tell banks to alter capital plans if economy worsens

REBROADCAST: Lesson 10: The Effective Use of Trend Lines, PART I Posted: 18 Mar 2011 08:00 AM PDT REBROADCAST: Lesson 10. In this lesson, Greg continues his educational trading series with Lesson 10. The topic today was ”The effective use of Trendlines in your Forex Trading”. Most retail traders dismiss the importance of trendlines as being to easy, unsophisticated, a tool for beginners. Don’t become complacent and dismiss trendlines as unimportant.  Instead learn how to use them more effectively. In Part I of this trendline lesson (Tuesday will be Part II), I show how trendlines can be a powerful trading tool in your traders toolbox. CLICK HERE TO VIEW This posting includes an audio/video/photo media file: Download Now

GBPUSD finds its ceiling Posted: 18 Mar 2011 07:52 AM PDT The GBPUSD has resistance against the 1.6185 to 1.6189 today. Three separate times the price has moved to this level and each time sellers have entered. In the last few hours, the price has made lower lows with trendline resistance at the 1.6174 level.  Earlier today, the price fell sharply to a low price of 1.6059. The fall was attributed to the Nationwide consumer confidence sentiment index falling to 38 - the lowest level on record.   However, since that time, the price has rebounded nearly 100% of the days range - only to find the willing sellers against the days earlier highs. Traders should look to sell rallies as the London/Europe head to a close for the week.  Risk is a move above the high.  On the downside, there is now support against the 38.2% of the move up from the low at 1.6139. The 100 and 200 bar MA are also near the level increasing the level as a key borderline level.

Moody’s downgrades 5 regional/local governments Posted: 18 Mar 2011 07:24 AM PDT Outlook negative.  This week Portugal’s countries debt was downgraded by Moody’s (down  2 levels from A3 to A1).  So this is somewhat old news I would guess. Nevertheless, the EURUSD is at the highs for the week and it may give the sellers against upside resistance, more confidence.  From a technical basis, the high is 1.4144. THe trendline off the hourly chart is at 1.4162 currently. Those are levels I would expect sellers to lean against.

USDJPY tests support and finds buyers Posted: 18 Mar 2011 07:21 AM PDT As per the prior post, the USDJPY fell below the support at the 80.90-98 (low reached 80.80) and failed to gather any additional momentum. The pair moved back above the 80.90 level and is now testing the 200 bar MA and the earlier day floor at the 81.21 area.

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