Author Archive

• CFTC Finalizes Regulation for US Retail Foreign Exchange
  faithmight, September 2nd, 2010 at 1:37 am, Comments: 0

  First, a summary of the CFTC’s final ruling: Brokers must register with the CFTC/NFA in order to facilitate trading for individual forex traders Forex account managers must pass an exam to trade other people’s money Leverage has been reduced to 50:1 for the majors and 20:1 for exotic currency pairs. The required minimum security margin [...]

• Using Gold For Clues In Euro
  faithmight, August 29th, 2010 at 12:00 am, Comments: 0

  Correlations with gold is not a new concept for $DX_F traders. And if you are trading any currency versus the US dollar, you have paid attention to or looked at $GLD to get a clue on moves in the USD. But I recently learned how price action in gold ($GLD) can be used to identify [...]

• GBPUSD Remains At A Crossroads
  faithmight, August 22nd, 2010 at 4:26 pm, Comments: 0

  When $GBPUSD rallied all the way to 1.5996, bulls got excited as price moved above 1.5500 and the previous weekly chart high at 1.5521. However, the last 2 trading weeks have seen consolidation and a pullback on both the weekly and daily charts. The red area represents the Fibonacci area on of the bear price [...]

• How The US Dollar Stacks Up
  faithmight, August 16th, 2010 at 12:19 pm, Comments: 0

  Fundamentally, the US economy is slowing. Many question whether there really was any recovery to begin with beyond the government incentives and deficit spending necessary to spark economic activity. And it worked. On paper. Economic data during the first half of 2010 showed a recovering economy that was adding jobs and producing impressive corporate profits. [...]

• A Look At Current Intermarket Correlations
  faithmight, August 13th, 2010 at 3:01 pm, Comments: 0

  Ashraf Laidi (@alaidi) shared this chart yesterday showing the intermarket correlations between the $EURUSD and $GLD and the $SPX. I like to use correlations when they can provide hints as to how a particular currency pair may move or even confirm a trading opportunity. However, your specific currency pair analysis should be the guiding light [...]

• Friday Showdown: Sterling Pre-NFP
  faithmight, August 5th, 2010 at 11:52 pm, Comments: 0

  Our good friends at CMC Markets shared an update on the Sterling Index with this chart: I agree with both Michael Hewson and Ashraf Laidi about the double top at 82.54.With the tops and bottom marked on the above chart, we can calculate key Fibonacci levels of 81.25 at 50% Fibonacci and 80.97 at 61.8% [...]

• Regulation Comes to The Forex Market
  faithmight, August 4th, 2010 at 10:53 pm, Comments: 0

  On July 21, 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into law today by President Barack Obama. Now, financial regulation is supposed to be a good thing. We, individual traders, should want those nasty market makers to be regulated and held to ethical standards when taking the other side of our [...]

• GBPUSD Rangebound After Big Moves
  faithmight, August 4th, 2010 at 10:14 am, Comments: 0

  After staging a rally for 9 consecutive trading days, $GBPUSD became rangebound rather than stage a correction as many traders, including myself, had called for since the rally became overextended 4-5 trading sessions ago. The $GBPUSD has forged a well defined range with 1.5960 establishing itself as the top of the range and 1.5880 at [...]

• GBPUSD Bulls Take Control But For How Long?
  faithmight, August 1st, 2010 at 11:31 pm, Comments: 0

  Sterling starts the new month of trading slightly bid as the $GBPUSD continued Friday’s rally to make new highs to 1.5732 in early Asian trading. As the market opens and the new week unfolds, cable traders are watching to see in which direction will the pair break. Will the $GBPUSD finally exhaust and produce a [...]

• Friday Showdown GBPUSD
  faithmight, July 30th, 2010 at 3:48 pm, Comments: 0

  I decided to change the Friday Showdown this week. Wanting to pay homage to Howard’s Overheard on StockTwits series, here is a recap of Friday’s incredible price action in the $GBPUSD. I am highlighting some of the great traders whom I have the pleasure to know (and you should follow) and give you the best knowledge [...]