AUDUSD Finally Breaks the 8-month Old Trendline, Triggering a Stop Fest

The move in risk aversion in the European session provided a big boost to the greenback, and EURUSD is pounding on the local support just above 1.4800 as we write this, and AUDUSD has collapsed through support and triggered a stop-fest now that the multi-touch trendline stretching back to March…

Friday Ramble

I noticed a Reuter’s poll today. All the top banks were asked to provide their guess on just how undervalued the Chinese currency – yuan- was against the US dollar. The average guesstimate was about 20%. That’s about 20% lower than my guess would have been, but no matter. What…

USD/JPY Glides Lower Amid Weakness in U.S. Equities

The USD/JPY hovered below our 1st tier uptrend line earlier today as we witness a broad-based selloff in riskier investment vehicles. Investors have indicated a preference for the Yen over the Dollar when heading for safety, meaning the USD/JPY could experience a positive correlation with U.S. equities should present weaknesses…

GBP/USD Sells Off Sharply to Psychological 1.65 Zone

The Cable is undergoing an intense pullback today, dropping beneath all of our previous uptrend lines along with 11/12 lows. The Pound is getting hit by a report from Nationwide and an analyst poll from Bloomberg implying Britian’s housing recovery may be overdone and analysts are expecting a pullback in…

EUR/USD Pulls Back with U.S. Equities

The EUR/USD briefly traded beneath 11/17 lows before stabilizing as we witness a broad based strengthening of the Dollar in reaction to a dip in the S&P futures below their psychological 1100 level. The wave of disconcerting data points from the past couple weeks appears to finally be taking its…