The incredible volatility and unconfirmed breakouts that proliferated last week has been tempered but not absolutely reversed. The risk of developing new breakouts and reviving trends is still extraordinarily high. For range traders, the best option is to stay out of the market all together or alter the time frames on trade setups.

More:
A Long Term AUDNZD Range Rises may Override Short-term Volatility

Speculators (red) have started to cover US dollar short positions (see the red line turning up).

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Kiwi Dollar Refuses to go Down Under—Yet

Our latest monthly outlook suggests no change in short rates for the next six months and only a slight increase in yield for the benchmark 10-year Treasury rate. For the time being the risks remain on the upside, however, for long rates as volatility around expectations on the dollar and Federal deficits suggest a continued cautious position on Treasuries.

John E. Silvia, Ph.D. Chief Economist, Wachovia

The rest is here:
Bank Research Consensus Weekly 11.30.09

After suffering a wave of volatility – the level of which we haven’t seen in many months – it seems the currency market is tempering and price action is going back to level of normalcy. However, the incredible price action that was seen through the market shock cannot be discounted for its lasting effects.

Read the original:
USDCAD Range One of Few to Hold But Still Highly Risky

Euro in forex trading

The euro is paring its recent gains against the U.S. dollar in currency trading on the FX market this morning. Overnight, the euro gained in forex trading as news about Dubai turned out not to be such a huge deal as originally thought.

However, things are not moving back into true risk appetite. Indeed, forex traders are backing away from the risk trade that they had begun embracing earlier. For now, the euro is lower against the U.S. dollar in currency trading as the greenback consolidates its gains from the end of last week.

It will be interesting to see how things unfold going forward. Dollar weakness is ultimately expected against the euro in forex trading, but that could be some ways off as forex traders warily re-enter the risk trade.

See Also

• Looking for Currency Trading Trends
  Tools and tips for forex traders

More:
Euro Back Above $1.50, But Paring Gains

The DailyFX Technical Analysis Home page offers a full supply of information for trading ideas.

See the original post here:
The DailyFX Technical Analysis Home Page

The Australian dollar is the best performing currency against the greenback on Monday after rising to a high of 0.9194 during the Asian trade, while the British Pound remains the weakest of the majors after failing to cross back above the 20-Day SMA during the overnight session.

See the original post here:
Australian Dollar Outperforms Ahead of RBA Rate Decision, British Pound Falters

The AUDUSD has broken below 5th wave channel support, which has bearish implications. The NZDUSD decline below .7080 last week brings an end to the string of lower highs since March. The suggestion is that the trend is now down.

Here is the original:
Aussie Breaks Channel Support; Kiwi Breaks Pivot Low

Too many times I hear about new traders opening a trade using the 5-minute chart (not my favorite approach) and when the market moves against them, they move to the 15-minute chart to justify staying in a little longer, hoping that the market will turn around.

Credit:
Don’t Change Time Frames to Stay in a Losing Trade

Too many times I hear about new traders opening a trade using the 5-minute chart (not my favorite approach) and when the market moves against them, they move to the 15-minute chart to justify staying in a little longer, hoping that the market will turn around.

The USD/CHF printed a new 2009 low of .99807 on November 25th, once again confirming the present downtrend.

Original post:
USD/CHF

Read more:
Euro-Zone CPI Estimate Advances for the First Time in 7 Months

The Euro-Zone CPI estimate for November climbed 0.6% from a year ago to mark its first advance in 7 months and topped economists’ expectations for a 0.4% rise after falling 0.1% the month prior, the European Union of Statistics office in Luxembourg reported said today.

Excerpt from:
Euro-Zone CPI Advances for the First Time in 7 Months; U.K. Mortgage Approvals leapt 57.3K