Good Afternoon,

Fundamentals - light. FOMC on Thursday (and weekly claims) and Retail Sales on Friday.

Technically, ranges were a bit bigger than yesterday. Notice in forex how the USD didn't strengthen yesterday afternoon as the equity markets weakened. It just seemed to be too good to be true that we would have two downdays in a row in equities. Plus, with the Fed in 2 days, who really wants to get overly short. Low and behold, we rally in equities and the USD gets walloped!

Check out the AUD/USD, is it heading into overbought territory? I think it will be if the FED maybe goes into a "we can do something down the road if data continues to weaken...)

Past performance is not indicative of future results

You can see how it is testing the last two Fibonacci lines. Another pair that has been on an extraordinary run is the GBP/USD, also testing the last Fibonacci levels:

Past performance is not indicative of future results

That is almost 10 pennies of upside movement since June. Finally, the EUR/USD. Aren't the conducting EUR weakening measures in Europe as well?

Past performance is not indicative of future results

Equities now have a bit of very, very, very "local" resistance at 1440. We break through with the Fed easing or "saying they can ease". I think that 1450 could be the next "resistance" area. But, for all of you technical analysts, can you really use 1450 as a solid technical reason to get short?

IBFX Webinar tomorrow evening.

Happy Trading and Be Environmentally Cool

Coach Brian

Forex trading is one of the riskiest forms of investment available in the financial markets and suitable for sophisticated individuals and institutions. The possibility exists that you could sustain a substantial loss of funds and therefore you should not invest money that you cannot afford to lose.