A week has gone by since the first Stop Trading post, for those of you
that don't know what my Stop Trading !! segment is, it's the perfect
time to do your homework and analysis when the Forex markets are
closed. And you have to excuse me if there's any weird or unusual
characters or spaces or grammar errors (no spell check) in this post
since I'm writing this on my new Verizon EnV2 phone, with integrated
keyboard :).But what a trading week it's been! And ladies and
gentlemen what have we learned so far when it comes to the EUR/USD
I was expecting the EURO to falter, purely based on fundamental
analysis... And guess what the technicals appeared to be stronger
bringing the currency pair into a sideways market trade. Pretty much
nothing dramatic has happened. The Euro should have been trading
around 1.38 according to my analysis from last week. Instead it's
about the same price as last week. Even though a lot has happened.
Negative news from Ireland and much lower production output in the
Euro Zone. Even with all that negative news which should've crushes
the Euro.. But guess what it didn't and you know what that signals?
Time to bail out and look for a market that's more volatile and better
directed then this pair. Obviously the Euro is too strong and may gain
further value against the dollar, but this won't happen overnight. It
will take another few weeks for this to happen. I we knew what kinda
bias to lean too I would say, jump in or hang on to this pair.. but I
think at the moment it's so wobbly, it's better to look at much
stronger currency pairs that do bring a lot of money in almost
guaranteed (or at least a better chance) in the upcoming week. Trade
commodity currencies! Oil is on the rise, and it can break the $100 a
barrel barrier again pretty soon economics speculate, so it wouldn't be a
bad idea to look into the (hallelujah) CAD!
Commodity currencies in general are on the rise, look at the Aussie as well, closely in the upcoming week. Depending what wallstreet will do, I'm almost certain a surge in oil will occur soon. Watch the USD/CAD and AUS/USD closely...
As well as the New Zealand $; my pick, commodity currencies are key to profits!
Since commodities are on the rise so will be the currencies that back them, in my opinion the safest one being the CAD, sell the US$ for CAD$ this week!