Analysis of Forex Trading, Financial Markets, and Economic Policies
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On the technical side, the US Dollar Bull Flag (daily chart) had held until now, with the dollar reaching a multi-month high of 80.82. However, it seems like the flag is overdone and a daily evening doji star has formed. A textbook explanation of the candlestick formation is below:
Click on images for full-sized picture
And here [...]
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Currency traders have recently been focused on the Eurozone debt problems. Economics professor Joseph Stiglitz and Hugh Hendry from Eclectica Asset Management sat down to talk about the current Eurozone crisis. The following two videos contain their conversation (hat tip to Zero Hedge). My notes/bullet points on the video are also below.
Notes:
* The Eurozone faces [...]
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On Thursday (Feb. 4th 2010), markets across the world sunk lower as sovereign debt problems spread fear and panic among investors. The graphs below shows how red was the color of the day.
Click on images for full-sized graph
As expected, the safe haven currencies (U.S. dollar and the Japanese Yen) skyrocketed as investors looked for somewhere [...]
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What was behind today’s sell-off?
Panic hit Wall Street today. While not many things changed within the last 24 hours, investor sentiment crossed a tipping point where skepticism and fear transformed into panic. Last week’s negative interest rate cross-over on the 1-month Treasury already suggested that investors were parking their money. Today, widening credit default swaps [...]
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Drawing via The Reformed Broker
The U.S. dollar index has formed a bullish flag formation on the daily chart (see the image below). It also seems like the U.S. dollar index is kissing the 200 daily simple moving average goodbye for now. U.S. economic data is bidding the dollar higher as the dollar carry trade continues [...]
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