EURUSD

Like the boyz in the hood say, "...I'm Down with that..."

What do you all think about Fed Chairman Bernanke Speaks & Existing Home Sales?
Will it kill USD and causing EUR to rise?

I expect EUR to go up to 1.5080 and then the big guys should start fixing profit as this is the end of a trading week... then it will drop

Treasuries, US Dollar Not Dead Yet
10/21/2009 1:45:00 PM
An increasingly loud chorus of investors expects the imminent demise of the US dollar and US Treasuries. They also expect that an exploding monetary base and the US’s structural problems will lead to massive inflation. This opinion may prove to be correct in the very long run, but evidence continues to mount that a deflationary phase will come first.

First, let’s summarize the inflationists’ view: Debt in the US is out of control, and the actions of the Fed, Treasury and Congress will continue to offset any deflationary slowdown in the economy. Deficit spending and interest rate cuts from almost every nation on the planet are inflationary. The US’s exploding monetary base, which has more than doubled over the past year, and large fiscal deficits, which may exceed $1.2 trillion this year, will eventually devalue the US dollar and cause foreigners to flee the Treasury market. The interest payments on our national debt will rise because of this exodus from the US Treasury market, which will weaken the dollar further.

We believe that people are incorrect to always look for inflation. At rare times, deflation happens, and here are the two key points which show holes in the inflationists’ near term outlook for inflation.

1. Treasury markets are attracting record demand -- Until foreign central banks flee from US Treasury debt, one plank of the inflationists’ platform is missing. Wholesale abandonment of US Treasury debt would cause interest rates to soar, which would raise the cost of capital in the US. But the data clearly shows that foreign central banks have not abandoned the US Treasury. As the chart indicates, foreign net purchases of Treasuries hit an all-time high at $100.53 B in June 2009, with China and Japan leading the way.

http://www.elliottwave.com/images/ma...PurchAug09.GIF

2. Collapse in consumer credit -- The US monetary base has expanded, but banks have raised lending standards and consumers are spending less. Consumer credit has fallen by $60 billion in the last five months, the sharpest drop in more than 50 years, and the new trend towards less spending is likely to continue. This drop in consumer credit should warn the inflationists that a new trend is in force -- one of deleveraging, which runs counter to the idea of inflation. The expanded money supply is potential inflation, but it is impotent if the credit is not actually being extended. As Bob Prechter points out in Conquer the Crash, “The ultimate success of the Fed’s attempts to influence the total amount of credit outstanding depends not only upon willing borrowers but also upon the banks as willing creditors.”

Been a while... howz trading ?

We going to see 1.5100 today lads or is cable going to pull this down 1.4900 area..... It has held up fairly well so far today and i am holding a long from 1.4972

Any oppinions?

Yes, I did. Closed my all three shorts entered at 1.6660 for total 20 pips, just before it dived more than a couple of hundred pips.

ps. just re-entered with only one lot.Will let sl hit or until it NY opens,

i regretted that i closed my long position @ 1.4990
Now i open a long position again @ 1.5030

I am still not naked

Still long here, and probably over the weekend as well...

That's my kind of girl......I likes 'em stupid.

.

I will trade the trendline at white circle and add at green

Did you check into it?

whats wrong?

Bernake said nothing new. US Home sales due out in about 1/2 an hour.
London leaves in a couple hours. Market's been long all week, maybe some book squaring.
Folks could start leaving early for the day. Makes the pairs gap up n' down
few pips here and there when Friday liquidity dries up. Try to stay awake.
Could get boring.......... Even the thread is starting to empty out......

cphcphcph or any one else would not recomend opening longs. I said last week I think we have seen the top. There could be some consolidation here and maybe they will cut the high but looks like rally has exhausted. We have already seen GU tank. Its just matter of time EU reverses. Week end reversal move might happen today or month ending reversal moves next week.

Before month end, could be atleast some attempt at stabbing big support.

150 has already busted so, whatever they wanna do next week wouldn't surprise...

Seems they all ready for great fall ? apparently so but can it not jump just after the news whatever it is & market waiting for action up?
confusion all arround before US home sales & no trade open yet in the evning session.
12 min from now should start clear all .
fontu

the pound just fell off my charts.

guess who's next.