Economists have been expecting a cut of 0.25% from the BOE which would reduce rates to 4.75%. However, economists had only been expecting a half-point cut from the RBA. Speculation is growing over whether we will see a coordinated, significant cut from the BOE this week and the Fed on October 29th.
This video takes a look at the short-term areas of support and resistance that may cap price action in the GBP/USD until the interest rate statement on Thursday.
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Chart of the Day for October 7th 2008 takes a look at the Australian Dollar (AUD). After the shock 1.00% RBA interest rate cut we take a look at the long-term picture and use technical analysis to identify a strong area of demand that is coming into play and supporting the market. We also have 50% and 61.8% Fibonacci Retracement levels to contend with.
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by passion-trading.com, and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
Chart of the Day for October 5th looks at the EURUSD as it stands at the close of play on Friday evening.
In recent months we have broken through several key support areas and on Friday we made a new low for the current bear swing.
For a full explanation of the technical picture watch the video below or a higher resolution version here. N.B. The video also includes an explanation and examples of an advanced stochastic breakout trade.
IMPORTANT NOTICE: These comments are for information purposes only. The information contained on this document does not constitute a solicitation to buy or sell by passion-trading.com, and/or its affiliates, and is not to be available to individuals in a jurisdiction where such availability would be contrary to local regulation or law. Opinions, market data, and recommendations are subject to change at any time. Forex trading involves substantial risk of loss and is not suitable for all investors.
