Forex Trading

USD is on breakout on many pairs. What is interesting is it is at such thresholds even though it is highly overbought and fundamentally it is difficult to understand why this move has been so dramatic considering the state of the US economy and the ‘Bailout Package’.

One explanation might be

(Price on 1st pane, Slow Stochastics on 2nd pane; uptrend lines in green; downtrend lines in red; horizontal support/resistance level in yellow; 50-period simple moving average in light blue.)

10/06/2008 - GBP/USD - The continued plummet on the GBP/USD daily chart, as shown, has just made a new two and a half year low

SELLERS HAVE TO SIGNIFICANTLY LOWER THE PRICE IF THEY HAVE TO SELL AS THE HIGHWAY OF GLOBAL LIQUIDITY REMAINS BLOCKED BY A MAJOR ACCIDENT. THE FINANCIAL COMPANIES PULLED THE MARKETS DOWN LATE LAST YEAR. IN SPITE OF MASSIVE FAILURES, THE SHARE PRICES OF MOST FINANCIAL COMPANIES ARE MUCH HIGHER THAN THEY WERE OVER TWO