Currency Trading at www.Elite-Trading-Corp.com

GBP fell after weak manufacturing data.

EUR-USD was caught long after 1.4000 failure during the Asian afternoon. Middle Eastern names and Eastern European accounts sold early on and this forced a pull back in to 1.3910, where the pair is currently trading. Bids are noted at 1.3910 down to 1.3880 from Asian and European accounts that are still looking to buy the dip after the pair managed to rebound from 1.3875 on Monday, which is ahead of large size stops.

The Reserve Bank of Australia left its overnight cash rate steady at 3.0% for the third straight month, in line with economist forecasts. The statement by Governor Stevens said that the “outlook for further inflation allows some scope for further easing of monetary policy, if needed.” Such a sentence clearly indicates that the central bank’s bias may be toward the downside. But the key to forecasting future rate action lies in the inflation metric

Student’s Question: What does the term “Fading a Move” mean?? Thanks. Power Course Instructor’s Response: Take a look at the chart below… After a major move has taken place, there is the very strong likelihood that the pair will retrace to some greater or lesser degree.? “Fading the Move” refers to trading against that initial move to the upside in the case of the chart below

Euro price action remains choppy; 100-Week SMA key
Dollar/Yen eyes retest of critical trend lows
Cable bearish reversal week could open deeper setbacks
Dollar/Swiss carving out meaningful base

Dollar/Cad gains seen extending to previous support turned resistance
Australian Dollar stalling by longer-term moving average
New Zealand Dollar supported by 10-Week SMA for now

EUR/USD – The market remains locked in a multi-day [...]

Trading the News: Reserve Bank of Australia Interest Rate Decision What’s Expected Time of release:?? ??? ? 07/07/2009 04:30 GMT, 00:30 EST Primary Pair Impact :?? ? AUDUSD Expected: ?? ??? ?3.00%??? Previous: ?? ??? ?3.00% Impact the RBA Rate Decision had on AUDUSD over the last 2 months mont hs ? Period Data Released Estimate Actual Pips Change (1 Hour post event ) Pips Change (End of Day post event) June 2009 06/02/2009 09:00 GMT 3.00% 3.00% +10 +116 May 2009 05/05/2009 09:00 GMT 3.00% 3.00% –4 +17 June 2009 RBA Rate Decision The Reserve Bank of Australia kept the benchmark interest unchanged at 3.00% for the second consecutive month in June, but continued to hold a dovish outlook for future policy as price growth falters. The RBA minutes said that the current policy in place ‘would be consistent with fostering sustainable growth and low inflation,’ but continued to see scope for ‘some further easing’ as the outlook for global growth remains weak

Divergence with RSI at each pair’s high and nearby Fibonacci resistance suggest that the AUDCHF and AUDCAD are at risk of reversing to the downside.

Tuesday's release of results from the latest non-manufacturing purchasing manager surveys in the UK and US might draw some attention prior to Tuesday's London close, but it's likely that further contraction of the services sectors in those countries is already baked in. Although the release of Eurostat's flash estimate for euro area CPI is not [...]