Dean’s FX 29

Bollinger Bands and Breaks
The (FX) market follows a steady cycle of oscillating between a range bound and trending environment, on a long and short term basis. During range bound markets, the buying and selling forces remain more or less equal, and therefore compress the market into a sideways trading pattern such as the…

Getting Creative with Support and Resistance
When the basic applications of technical indicator fail to explain the current market climate, we can experiment with a new and fresh look at the charts. The following (1-hour) chart shows a steady downtrend, with its expected support and resistance levels. Since the trend is to the downside, we should…

Buy the Strongest, Sell the Weakest
One of the best technical tools we can use in our analysis is the status other currency pairs. If you are of the opinion that because of fundamental reasons the US Dollar will weaken, your next step would be to find the currency pair that gives you the best chance…

Dean’s FX 29

Dean’s FX 28

How To Trust Your Setup
One of the great ironies of life is that as traders we often trust ourselves least of all. Most traders (myself included) approach the whole enterprise with deadly combination of overweening sense of arrogance in our ability and underwhelming sense of confidence in our trade setups. When it comes trading…

US Dollar Outlook Unfazed by Worst Economic Contraction Since 1982
News of the worst US economic contraction in 26 years was not enough to keep the dollar at bay, as the US currency posted gains against the euro and other major counterparts to end the week’s trade. A fresh record-high in US unemployment insurance claims, continued all-time lows in interest…

Dean’s FX 28

Weekly Economic and Financial Commentary
U.S. real GDP declined at an annualized rate of 3.8 percent in the fourth quarter. Although the decline was the largest contraction since the first quarter of 1982, it was not nearly as bad as the 5.5 percent plunge the consensus expected. The real surprise was the unexpected increase in…

Dean’s FX 30

Dean’s FX 29