Forex Trading TV Video Blog

Ascending Triangles

Here is a great video that explains Ascending Triangles in Forex Tchnical Analysis.

My Forex Blog

The USD strengthened throughout yesterday’s trading and as a result of mostly positive economic releases; it saw a day long bullish trend. Although the USD did lose momentum on Monday, yesterday it gained strength against most of its rivals. Against the EUR, the greenback rose and led to a decline of the pair to a level of 1.5480 in late New York market trading. The main factor that led to the USD’s rise was the better than expected Core Retail Sales figure.

Yesterday’s batch of American economic announcements started with Fed Chairman Bernanke’s speech. Bernanke said that the financial markets improved, but cautioned that the central bankers and the markets are still a long way from the point when they can say the credit crisis is near its end. Traders looking for hints about future Interest Rate cuts in his speech were disappointed as he did not discuss the Fed’s next Interest Rate move. Right after his speech, a batch of economic data was released, highlighted by Core Retail Sales of 0.5% and Import Price Index of 1.8%, both higher than forecasted.

Further adding to the USD’s bullish momentum was the lower than expected Business Inventories figure which is a good sign for the American economy. Retailers order more goods when they have depleted inventories. This creates more business for the wholesales, who in turn increase their orders to manufacturers.

Looking ahead to today, we have the Consumer Price Index due to be announced. Forecasts have the index at the same rate as last month which should not affect the USD’s value very much. Following the CPI announcement, Fed Governor Kroszner speaks at the Federal Reserve Bank of Boston. Lastly, traders will wait to hear the Crude Oil Inventories and watch how that release will affect the very high Crude Oil price, which high a record of nearly $127 yesterday. Traders should not expect much volatility from the USD today as the news releases are expected to be steady, but any surprise will either keep up the bullish momentum or lead to negative momentum.

My Forex Blog