Tip of the Week - Go Long on EUR

I'm anticipating a lack of volatility early in the week but looking for a turn by Wednesday particularly in relation to the EUR/USD and EUR/CHF.  Look for many factors that will drive the euro higher, possibly into a major rally. Look for better than forecast news from the German ZEW economic sentiment and subtle weak dollar comments from the US Fed when they announce a hold on interest rates. Couple that with the Swiss National Bank's desire to drive the peg against the euro higher and the fact there are now a majority of short positions in the euro.  One of these factors alone may have little overall effect on the euro but synergistically, look for the EURO/USD to approach 1.375 in the relative near term.

So after batting 1.000 last week, I highly recommend going long EUR/USD and setting loose stops because there will ultimately be fluctuation before the drive higher.  Buy on these dips as opposed to bailing out and look for a tidy profit by week end.

Great Rendition of "We Three Kings"

With Forex trading ending until Sunday night in Sydney, please take the time to listen to this incredible rendition of "We Three Kings performed by one of today's hottest bands, SisterBrother.

ECB Rate Cut

Will the European Central Bank (ECB) cut rates tomorrow morning by 25 or 50 basis points?  Many speculate that the 25 bps cut forecast by many leading economists may actually wind up as a 50 bps cut.  In the event of that, look for the EUR/USD to tank downward rapidly by approximately 100 pips.  Now looks like as good of time as any to go short on that pair.  Tonight's trading has maintained a very tight range with low volume in anticipation of the ECB rate decision.

My recommended trade of the night is to short the EUR/USD pair, ride it down to the 1.33 level then buy double and watch a huge rally. Enjoy a tidy profit riding this pair in both directions.

The AUD/USD descended rapidly earlier in the evening after the Australian government released poorer than expected jobs data, particularly a loss of 40,000 full-time jobs.  Market adjustments had already indicated that speculators expected the exact opposite news.

Trading Tip RBA Rate Decision in 15 minutes

Will the Royal Bank of Australia cut rates today when they announce their decision.  The market is leaning in favor of a .25% rate cut which will drive the AUD/USD pair about 50 pips lower.

Scenario two, leaving rates unchanged, creates more havoc and the Aussie dollar may climb 90 pips or more until it resistance just above 1.03.

My trading tip is sell 2 units now at market, putting a but stop order in for twice that approximately 10 pips above the initial sell.  In this scenario, you will see profit regardless of the RBA rate decision.

Morning of December 5

I see things have changed overnight.  The dollar lost traction against all of the majors except for the Swiss Franc.  No major news today until an Australian Bank rate decision at 10:30 tonight EST.  Watch the AUD particularly close today.

Boring Night December 5 - 1:00 AM

For traders like me, who enjoy getting in and out, claiming a small profit in the process, tonight is just boring me to tears.  There's very little activity in the market, all currencies are staying fairly flat although it does apppear that the dollar is slowly gaining ground against all of the other majors. Let's see what happens when the market opens in London?

Birth of My Forex Blog

I began blogging several years ago as a hobby and now I find myself writing more and at times, almost obsessively.  My original blog RamblingsofJohn.blogspot.com receives many hits each day and has readers from all over the globe.  But unfortunately, I write as led by the wind so many followers find the Forex news rather boring so I've started a blog just to cover the interesting things I discover about trading in the foreign currency markets.