Low Volume

The market has been pretty choppy the past few weeks - a signal that low volume is at hand. At this point, it is quite obvious that investors are waiting for opportunities to happen - either a strong signal from the Fed on their next move or a sign from any regions (Europe, Asia, North America, etc.) that a strong economy is at hand.

Let's keep an eye out for these things as opportunities may only be days away.

All the best!

GAPS ON EUR/AUD AND USD/JPY

Heads up!!! There is no doubt there are gaps on both pairs. The question is when are they going to be filled?? Beeeeeeee Carefulllll!

USD/JPY - A LONG-TERM FIBO PERSPECTIVE

Take a look at this technical long-term Fibonacci scenario for the Dollar-Yen. Since 1985, the pair hasn't even retraced to one of the most possible Fibo retracement level - the 50%. And even if it goes down all the way to "0.00", technically, it still has a good chance of making it back to the 130 area - that's assuming Japan doesn't throw in the towel.

GBP/JPY GAP FILLED

The Pound-Yen gap has been filled and is looking for a stable direction. Click picture to enlarge.

GBP/JPY GAP

I don't normally trade a short at the bottom of the chart but this one gets my attention. After 2 days, Pound-Yen still has a 200-point gap. Based from experience these types of gaps tend to close after a few days.





Very Attractive Pairs

At this time, current pairs that are very attractive for a good "buy/long" positions are as follows:

USD/JPY

EUR/JPY

GBP/JPY

EUR/CHF

Both the Yen and Swissy have been on a rapid rise the past few months, and with both their central banks protecting their support levels, there's no telling how far the reversal of these movements can reach.

The U.S. Dollar, GDP and Jobs

The truth is that U.S. entities benefit a lot in the decline of the dollar. As the currency devalues, more products are exported resulting in higher GDP levels. However, this does not necessarily mean more jobs. With the advent of better technologies and global competition, one must factor that in the equation to come up with better job solutions.

http://tirawebs.com/RDUFX/ANALYSIS/08272011/USD%20VS%20us%20GDP.jpg