"Forex trading could be your key to financial freedom if you could consistently earn pips and at the same time realising the power of compounding".- Harwin Poon


Erratic & Choppy 48hrs

Photo Sharing and Video Hosting at Photobucket

Orange lines= Fibonacci levels
Green lines= Channel lines
Purple line= 72EMA
Vertical white lines= 24hrs period seperator

The low of Monday is where the hammer candle is on 4h chart. Price loss volume on its way up. On the second attemp on tuesday, there where cluster of resistant lines stopped the bull, falling back down to the 61.8 fibo.

It was a choppy market for the past 2 days. No gains and no loss on both manage accounts. For a short term trade, the 2 fibo should be the levels to watch, break of the 50 fibo is a uptrend and assertive downtrend if it breaks below 61.8 fibo.

For the fundamental side. Subprime mortgage concerns is still there, the ailing Bear Sterns top wallstreet rival refuse to give aid, according to bloomberg yesterday. China stocks decline for 2 consecutive days. The expectations of US Fed holding their interest rate this week might push the dollar lower. Risk aversion to safer bonds continues. All this support the carrys unwind view.