Dollars 2 Pounds

Of note in the world of non-USD crosses is the break of trendline resistance in both the EURGBP and EURAUD. The EURNZD may have put in a secondary low also. The bullish Yen scenario (bearish Yen crosses) presented Wednesday is looking more probable.

Private spending in Canada is expected to improve for the second consecutive month in September, with economists forecasting retail sales to increase 0.6% from the previous month, and the data is likely to encourage an improved outlook for the region as policy makers see the economy emerging from the recession in the third quarter.

Large and prominent ranges are a common site across the currency market; but it is this market-wide trend coupled with rising concern over the direction underlying risk appetite may taken in the days and weeks ahead that warrants caution in trading these seemingly benign setups.

The EUR/JPY has been under pressure as risk appetite has faded, sparking a flight to safety and broader yen support. The pair has fallen to major support levels which may slow its decline and offer a period of consolidation. The upcoming Thanksgiving Day holiday could lead to a week of quiet equity markets which may enhance the pair’s attractiveness as a scalping target.

The USD rally is getting legs and much larger moves are expected in the coming weeks. Look to buy the greenback across the board on dips. Levels are clearly defined.

The EUR/USD continues to see-saw as risk appetite ebbs and flows keeping the pair relatively unchanged over the past ten days. Stocks down on the day have helped the pair erase losses from yesterday. However, the pair continues to see support levels hold keeping the pair within its recent trading range, making it a target for scalpers.

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Question:  What technical indicator will tell you that a top or bottom is in place?

I went back to see my family in Chicago this past weekend and I was talking to my brother-in-law. He is an engineer for a big manufacturing company who told me that their company has not only brought everybody back from earlier layoffs, but they are also aggressively hiring. Why?

The British Pound weakened against the greenback for the fourth day and slipped below the 20-Day SMA (1.6580) to a low 1.6516 during the European trade, and the currency may face increased selling pressures going into the North American session as investors scale back their appetite for risk.

Oil, gold and silver are set to fall in with broad trends in risk appetite into the end of the trading week with virtually nothing of note on the eonomic or the earnings calendars.

The markets continue to show signs of a potential rolling over as currencies slowly lose their firm hold on the buck and begin to recede on the back of some ongoing concerns over the prospects for the global recovery and downbeat comments from the likes of President Obama, Germany’s Wisemen and US Treasury Geithner, who have all now warned of the risks for a double dip recession.