EURUSD Bounces After Breakdown

I was taking a look at this chart this morning. The EURUSD was falling and a break of its trend looked like it could lead to another fall for it to test the 1.2750 level.

As can be seen we had that break below the trend.  But what we never had is a consolidation period where the currency pair trades below the trend, tries to trade above and then fails.  Without the consolidation phase, such a move is simply momentum dump but doesn't qualify as a breakout play.  

Worth watching though to see where it closes for the day.

Forex Trading Today: Gold More Interesting Than FX

GBPUSD: The GBPUSD keeps hitting 1.6275 resistance and failing. As such the pair could be a short candidate on ay subsequent moves above 1.6260 with stops at 1.6280.

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Forex Trading Analysis: GBPUSD Looking Strong while EURCHF Firms

Market Needs to Wake Up!Not a whole lot going on today as the markets continue to look for direction after last week's risk rally. Overall. not much has changed since last week's FOMC Meeting. In fact, it can be said that risk sentiment has actually risen with the Bank of Japan joining the party and increasing its own monetary stimulus plans. As such, with riskier currencies in the forex markets seeing weakness this week, we appear to be in a period of profit taking after the previous run-up.

Looking forward, forex traders may want to keep their eyes on EU sovereign debt yields, specifically those of Italy and Spain for an indication of whether the "good times" are set to continue or whether the longer term risk adversity theme is still in play.

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Forex Trading Analysis - Bank of Japan Joins The Risk Party!!

Earlier this morning the big story was that the Bank of Japan has joined the party as it announced at its Monetary Policy Meeting that it would increase its asset buying and loan program, by 10 trillion yen ($127billion) to 80 trillion yen. The move ends months of inaction from the BoJ which had been aggressive with applying economic stimulus earlier in the year before slowing down. The move is partially seen as a defensive play by the BoJ as forex traders expected that a potential run into the yen was possible after the US Fed activated its QE3 plans.

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EURCHF Update: Staying Long (& Buying More)As SNB Leaves 1.2000 Price Floor

Who's Happier? EURCHF Longs Or the SNBWell maybe not as anticipated as yesterday’s German Constitutional Court decision or the iPhone 5 release, but the just finished Swiss National Bank Meeting was eagerly awaited by forex traders.  To review, the SNB left their 1.2000 EURCHF price floor in place and continued to state that they will "continue to enforce it with the utmost determination."

With the EURCHF rallying over the last week, it led to speculation that the SNB may be involved with the buying as a prelude to a price floor raise to 1.2200 or higher.  However, with the SNB leaving its floor at 1.2000 in place it may be revealing that the central bank isn’t the only one out there buying the EURCHF. 

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