Integrity FX Analysis - page 2

[SirMcPip]

fx_tactician:
Earlier this week, the central banks around the world gathered and collectively decided to cut interest rates for their respective countries in order to slow a fast moving global financial meltdown. The initial reaction in the markets was one of surprise more than anything else. Unfortunately, the move did little or nothing to inspire confidence in the strongly risk averse markets. Thursday, the US stock market had an afternoon selloff that sent the Dow below 9,000 for the first time in five years, falling 678.91 points. Twenty stocks fell today for each one that rose on the New York Stock Exchange. CNBC writes: “It feels like 1997 all over again in Asia. Japan down 10 percent, Hong Kong down 8 percent and Australia down 8 percent as markets around the world are gripped by recession fears. And the selling continued this grim Friday session.” There is so much activity right now, that it is difficult to know why markets are responding as they are. Is it liquidity injections or global interest rate cuts. Paul Kedrosky writes: 's impossible to know any more whether it's the illness or the medicines that are hurting things here. And even if we have jury-rigged a semi-functional banking system again, the rapid contraction of the real economy is set to feed back into the financial system, causing more credit problems. The effects will be vicious.” It would be ideal if the G7 ministers were to make some bold moves and get out in front of what is likely to be increased short selling. The general lack of confidence in the global financial markets is at the core of this problem. No amount political trickery or interest rate shell games are going to stop this global financial crisis. We need solutions to credit issues! In order to bring stability to the markets, governments are going to have to step in and buy much of the debt. Giving the banks money they won’t lend is pointless. Trust is the Problem, not Liquidity… _________________________ Patrick PattersonVice President of OperationsIntegrityFX LLCToll Free: 1-888-355-3855951.823.0686 office951.823.0687 faxYahoo IM: [e-mail] FX, LLC

I agree, trust is the problem of the whole situation, just in a different context. Our whole current fiat financial system is based on trust, otherwise the mass of hot air could not keep it afloat on the surface for a minute. Our whole monetary system' s only value has been trust, it never had any real value whatsoever. So the solution is not some buyback operation or some other hocuspocus, the only solution is to stop the printing press of the federal reserve as this is the root of all problems.

[pip_pro]

Primed for a bounce, forex markets have rallied on news of Europe implementing a plan to guarantee bank lending in their effort to stimulate the global economy. Futures are up 300 points over fair value indicating a strong open and a strong push against the USD and JPY—last week’s massively overbought safe-haven currencies. With a promise from the US Federal Reserve to “consider every option” to help restore confidence, the worst week of trading in history last week has setup an opportunity for a short term rally across the boa

But if this market has proved to us anything, it is that the market is no longer looking for the “quick fix” for this global meltdown and the bears will jump in on opportunities to sell rallies until banks begin to start lending again. So, we are cautiously bullish the EUR, GBP, CAD, AUD, NZD, and carry trad

USDJPY – We will look to buy past Thursday’s highs at 101.34 on a short term rise to possibly 103.15. The pair could continue to retract even further to the upside, but, again, we are very cautious to buy heavy against the trend at this poin

EURUSD – 1.3775 is Thursday’s high on EURUSD and a break of that mark could yield a solid short term buy though. A little longer term, we’d definitely be more confident in a buy past 1.39

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John Rowa

Executive Director of Trading

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[crossfire_pips]

The best bet right now is with the GBPUSD. Even though the triangle that we talk about below hasn’t established itself as a rock solid pattern yet, there is some definite buying potential. The best way to trade it right now is to buy after a break of the top of the triangle at 1.7450. Look to take profit in the area of 1.7600. This is both the 78.6% line of the Fibonacci retracement drawn from 1.7835 to 1.6776 and a grouping of recent resistance. In fact, this line was tested five or six times. Buy at normal risk (suggested is 1%) until 1.7600, then if a break of this level occurs, continue buying at reduced risk (suggested is 0.25%)

In case the break doesn’t happen and the pair bounces, sell off the top of the triangle towards the bottom at 1.7191. This is also the 38.2% line from the above mentioned Fibo. Watch out for mild ranging and sell of the retraces to either add to your position or as separate trades. If it breaks the bottom, continue at lower risk towards the recent lows. We suggest letting it go and putting a trailing stop loss on it if you decide to do this.Click here for complete article

____________________________
Luke Coleman

Executive Director of Strategy and Analysis

Commodity Trading Advisor

Integrity FX, LLC

Office: 951.823.0686

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