Trending 6 majors LIVE - Highlights on USDJPY, USDNZD & USDCAD.avi

Pls visit our Website at: http://www.megatrade101.com for a complete market view analysis dated the 24th of August, 2010.

Starting with the USDJPY, where technical selling divergences occurred from a weekly and monthly candlestick chart that supports the down trend. And confirmed with the recent comments made by Moody's this morning which made the USDJPY react to as low as 83.57 and is curently making a slight recovery back to 84.00 levels. These market signals has been there even before the market movement was done. As it has been easy for others to call the market trend after the fact. But we try to determine it before and simply accept if and whenever we call the market incorrectly. The determining factor is to make a correct decision 3 to 4 times out of five (5) to get a positive net effect on the bottomline which is more important. So percentage trading coupled with hedging strategies on spread allocation and leverage trade is a plus factor in any trading decision. Due diligence is a must while trading a volatile market such as the foreign exchange.

It has been quite a directionless forex market at the opening of the week as the overall price movements for almost all major pairs have been within the previous week's trading range. As the market awaits further incentives coming from the upcoming reports on the durable Goods Orders that may show some mix expectations for the next couple of days.

Thereafter, the jobless claims, the Michigan Consumer Sentiment Index and the more important speech of the Fed Chairman Ben Bernanke towards the end of the week that may make some bearing and influence in the market place.

However, as the USDCAD shows its form by continuing to move higher as of this writing. At the present levels of 1.0503 and attempting to move to the first objective of 1.0600-80 levels.Although, the day to day seems to resist but there is some leg room to move higher and is still intact. As it penetrated its first Fibonacci trendline resistance and ultimately would attempt its 21 month MA at the 1.0710-20 levels. This will be detemined whenever volumes and position trades increases in the next few days ahead.

As for the NZD or the Kiwi, the consolidation on the upper band has formed a rounded top from the highs and a flat consolidation signaling some corrective movements lower but the trend is still to move higher. Some false signals can be attributed to the consolidation, however stick with the trend. Its just a matter of how much one may want to tolerate a down movement with an outstanding long position. Just be extra careful as the volatility would increase towards the Bernanke speech on Friday.

More information can be found in our market view report and our opening blog at: http://megatrade101.blogspot.com

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• Australian dollar
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