The Cable plunges 400 pips in 4 days!

EUR/USD

The Euro is slowly but surely starting to move down as it made its way to 3850 today. Both 4hr and daily stochastics are trending down with daily stochastics still in overbought territory. I think we still have alot of time for the Euro to drop and I would look for the pair to drop to around 3800 sometime tomorrow.

GBP/USD

Well the Cable sure did make a nice drop! This is one of my favorite pairs to trade because when it moves, it REAAALLY moves! Both 4hr and daily stochastics are in oversold territory and they both got there very fast. Currently the pair is trading around 9950 and I would look for it to float back down to 9900 before it makes a bounce back up.

USD/CHF

The Swissy bounced between 1850 and 1900 today and has been kind of moving sideways the past few days. However, daily stochastics are trending up and are just now leaving oversold territory which leans me towards more of the bullish side. I’d wait for now on this pair because it may stay quiet for another day or so, but I’m still keeping a bullish mindset on it.

USD/JPY

The Yen is also trading sideways at the moment. The pair has been bouncing between its 50 EMA and 100 SMA on the 4 chart which is right around the 115.00 level. I’m still bearish on the pair but I think we’ll still see some upside movement in the next few days before we see a drop. My advice is to sit back and just watch this pair for now.

I’m not really big into fundamentals but I feel that they are important to discuss. In this section I will be posting fundamental tidbits that I find interesting from various sources. If you find an article that you think would benefit everyone, please email me (Big Pippin) with your username, the article, and a link to where members can read the entire article.

Now onto the Fundamentals:
  • Credit market is not so great. Hank Paulson, US Treasury Secretary said in Financial Times:
    • The crisis of confidence in credit markets is likely to last longer than previous financial shocks of the past two decades, Hank Paulson, Treasury secretary, warned on Tuesday. He said the uncertainty in credit markets would last longer than the turmoil that followed the Asian crisis and the Russian default of the 1990s or the Latin American debt crisis of the 1980s. Mr. Paulson said the likely duration of the turmoil reflected the difficulties of financial services companies in valuing complex assets tainted by mortgage-backed securities.
  • Not much news lately……EXCEPT for the good ol’ housing market:
    • But we can always count on the Housing meltdown to contribute news items… It’s Sub Prime… All the time in the media… To prove that point… MarketWatch now has a daily link to sub prime, housing, etc. Which is where I found this tid-bit… A dispute between the bankrupt American Home Mortgage and Freddie Mac may cause 4,547 people to lose their homes. Those mortgages don’t have the loan files necessary to pay insurance premiums and property taxes on them.