Trendline 1.5 broken

At last, the 1.5 barrier(EUR/USD) is broken. Fulled by many rate cuts and unexpected good news from germany traders push past the level with conviction. AUD/USD is closing in on parring and is testing 0.95 level now on more rate hikes from the RBA. The FED says they are watching closely on the USD. They are more concern about downside risk and starting to worry a bit on inflation now. With the US index also trading at low levels, do you expect to start buying some cheap USD? With elections coming up, and more writedowns comming out, the picture is indeed gloom for USD bull now. Stay put as more psycological level is tested and the march FED meeting.

Currency update

FOCUS: USD/JPY, for once USD/JPY rallied past 108.50 but unable to hold... Porofit taking or sell the rally its your take. The intermediate trend is still sell the rally. With Bernanke signaled he may cut interest rates further amid mounting concern that the economy is headed for a recession. Traders stick to the sell usd buy euro trend with the ECB puzzling wheater to fight inflation or cut interest rate as other central banks did. One thing is true, commodities currencies like AUD and NZD will continue to push forward with the CAD not far behind. Euro and GBP will continue to trade higher but with caution about sudden news... Bank of Japan has put rates on hold so will carry trade push higher wait and see....

Start of a new Chinese decade

Enter the rat, out goes the pig and a new year comes. Lets be frank start of the new year the fed has been cutting rates to do what it can to avoid a recession, even Bank of England has been doing it. With the stock market at low levels and recession looms at a corner, it is time to cash it in or continue the safe haven buying like precious metals and swiss franc? One thing is quite sure, i belive we are entering the bear market but not recession. Fundamentals are still strong in some countries and sell the rally is still the current trend (of course the tide will turn in due time). Courage and good analysis is needed in this market, no more cheap and good investment only value and strength in trends right now...