A panic has seized the global financial markets, sending the stocks plunging and overnight lending rates soaring. For the currency market on the other hand, the high-risk, carry pairs have been compar...

The unprecedented, global rate cut yesterday produced record jumps in volatility. For the Canadian dollar, the surge has deepened trends and forced breakouts. However, with price action still holding ...

Fading risk sentiment has dragged on the CADJPY over the last six sessions, and has led the pair to break below major support levels this week. After falling to an intraday low of 87.63 during the Asi...

I wrote last week that “the next drop likely extends into the 130's.” The EURJPY has reached the 100% extension of the 170-146.98 decline at 135.61. This level is just above the 38.2% of 88.87-170 at ...

The world's largest central banks dealt the carry trade a major blow this morning by announcing a joint rate cut. As the proxy funding currency for this popular trading strategy, the increased volatil...

Since the end of July the AUD/JPY has been trading in a downward trend channel. After the break through the upper trend line and a touch with the 90 resistance level, the market broke the 81 support l...

There is no change to last week's analysis. '5 waves up from the January 2007 low at .6535 suggests that a large corrective decline is underway from .8187. The Fibonacci zone does not begin until .755...

The potential for breakouts and volatlity in the premier carry currencies in response to the US governments efforts to stabalize the financial crisis should be more than evident. After the first versi...

A triangle appears to be unfolding. This does not change the bearish bias in the long run, it just delays it. Expect range trading over the next several weeks in waves c, d, and e of the triangle. Ult...

Moving at its own pace, USDCAD has been ushered back to major resistance through broad dollar buying; but hesitation once again reveals the different nature of this pair as compared to the other major...

From the middle of July to September the EUR/USD has traded in a bearish trend channel. After breaking trough the upper trend line the market touched the 1.49 resistance level and rebounded back to th...

As we know it, Japan's economy has been labeled recessionary given its two consecutive quarters of negative strength. July GDP data shows the North American country seeing some relief, expanding 0.7% ...

Last week, I wrote that 'the EURJPY fell in 5 waves from the July high at 170 and the rally from 147.50 is most likely a correction of that decline (I say most likely because there is the possibility ...

We maintain that 5 waves up from 1.5326 indicate that the longer term trend has turned up. The decline from 1.6376 has now tested the 61.8% of 1.5326-1.6376. If the larger bullish bias is correct, the...

Since last Monday the GBP/USD has been trading in two horizontal trend channels with a resistance level at 1.8631 and a support at 1.8455 and 1.83. After trading close to the 1.8455 level the market b...

There is a long term bullish opportunity in the British Pound / New Zealand Dollar. A clear 5 wave decline is evident in the GBPNZD from the 2000 top to the 2005 low. After 5 waves in one direction, a...

Risk appetite throughout the financial markets holds carry sensitive pairs up to potential breakouts. However, with weekend liquidity rapidly approaching and an agreement on a US financial market bail...

At the beginning of the week, the AUD/NZD bounced back to hit an intraday high of 1.2292, but is steadily losing momentum and should fall back to the downside over the following week. After failing to...

The Australian Dollar crosses are consolidating following large rallies from significant lows. The consolidation should lead to additional strength. I showed the daily chart last week and longer term ...

With the financial crisis still grinding on risk appetite and a rebound in commodity prices putting the spring back into comm bloc price action, our DailyFX Analysts are turning their attention to the...

The British Pound could see some massive selling in very near-term against the Canadian Dollar. On a 1-hour chart we see the pair consolidating within the 1.9150-1.9200 range. As the GBPCAD approaches...

We have held a bearish outlook for the AUD/CAD since the beginning of September, and anticipate the pair to fall lower in the days ahead. Earlier this week, the pair bounced higher to hit an intraday ...

The British pound crosses, particularly the GBPNZD, are likely to work higher from near current levels. Risk on the GBPNZD is about 600 pips but the bullish target is not until over 3,000 pips....

In last week's release the question was asked: is the US dollar bull trend over? The expectation was that we would see confirmation over the following weeks in the form of a broader decline, following...

The EURJPY fell in 5 waves from the July high at 170 and the rally from 147.50 is most likely a correction of that decline (I say most likely because there is the possibility that the drop from 170 co...

The Euro crosses have rolled over and appear headed lower for at least the next few weeks. EURGBP: 5 waves up from the January 2007 low at .6535 and daily RSI rolling over from above 70 suggest that a...

Last week was a tumultuous one as a full blown credit crisis led all markets to dramatic moves and possible financial instability. However, with the market now on the tail end of the event, the market...

The past 24 hours have seen a dramatic turn in market sentiment. Whereas liquidity was in high demand and short supply yesterday, the market is now flooding back into high yield currency pairs. Pacing...

After hitting an intraday low of 1.1805 yesterday, the AUDNZD has bounced higher to hold above 1.2000, and has triggered an oversold RSI signal in the process. As a result, price action has broken abo...

There is no reason to change our call for a lower GBPCHF. There is a long term measured support level at 1.9125. The sharp advance from 1.9492 is in 3 waves (corrective) and favors the downside. A tri...

Conditions have deteriorated dramatically in the financial markets this week and the currency market has reflected a general sense of confusion. Is there protection to be had in Canadian dollar positi...

One word can describe the state of the currency market over the past week: volatile. What's more, no area of the FX market has been as active (or aimless) as the yen crosses. With risk appetite hammer...

EURGBP 5 waves up from the January 2007 low at .6535 and daily RSI rolling over from above 70 suggest that a large corrective decline is underway from .8187. The Fibonacci zone does not begin until .7...

After dipping below 93.00 yesterday, the CHFJPY has bounced back to the upside, but has failed to break above 95.00. Since last week, the pair has held within a tight range between 92.95 and 95.85, bu...

Yesterday the GBP/AUD broke through the 2.20 resistance, which it tried to cross the first time in the mid of August and a second time last week. If the break through impulse is strong enough, we will...

After failing to break above 0.8750, the AUDCAD has come under heavy selling pressures, and has moved back within the downward trending channel. The downward momentum is anticipated to lead the pair l...

It has been an arduous few months for the high-yielding Australian and New Zealand dollars. With both the RBA and RBNZ proven their willingness to cut both currencies' primary attraction (a high yield...

After congesting near 1.2009 (21.4% Fib level of 1.1950-1.2510) earlier this week, the AUDNZD surged higher to hold above 1.2264 (61.8% Fib level of 1.1950-1.2510). A bearish divergence in the RSI has...

There is no reason to change our call for a lower GBPCHF. There is a long term measured support level at 1.9125. The bias is bearish as long as price is below 2.0538 although price ideally remains bel...

The GBP/AUD has been trading in a 'N-format' after it was breaking out of its old horizontal trend channel. Now we see a resistance at 2.203 and a support level at 2.095. If the market breaks trough t...

The EUR/JPY has shown a bullish trend development from the middle of march to the beginning of August with a resistance level at 169.77. Since the beginning of last month the market has shown a strong...

The trend for the dollar continues to push higher, but despite this scenario it should be noted that the yen has been the stronger of the two currencies and in technical terms this does suggest non-co...

As expected the GBP/AUD has shown a bearish trend since it touched the resistence level at 2.19. This recovery shows a similar move like in April. Should the market break trough the 2.093 support leve...

The USD/JPY tried some times to break through its upper sideways trend line. In the first third of August it was done. With this break the market made about 200 Pips on the long side. But now a new si...

In CHF/JPY the sideward trend from June and July was broken at the beginning of August. Since then, there has been a strong bearish trend in the market. With a break of the upper side of the new downw...

The momentum and the RSI are in a major bearish trend but we see some divergence in the minor trend as the momentum broke the zero line and pointing upward. The MACD is after a bearish cross when the ...

The GBP/JPY established a strong downward trend at the beginning of August. The trend channel was broken once through the upper line and once through the bottom trend line. Both breaks were not sustai...

In last week's release, we discussed the potential for extended short strength for the US dollar, although the context for this remains against a long term bear market. Given the speed of the market's...

From May to July the GBP/AUD traded in a horizontal trend channel with a resistance at 2.0913 and a support level at 2.0373. After breaking through the resistance, the market touched its old resistanc...

GBPJPY: The drop from 250 is in 3 waves to this point (A-B-C). However, the advance from 192.60 is choppy and could therefore be a 4th wave that will give way to a 5th wave that ends below 192.60. As ...