August 23, 2011 Forex Signals Report

Although the U.S. Dollar is down again today against most major currencies, there doesn’t appear to be enough momentum to drive it sharply lower. This may mean a drifting market. Looking at the expanded ranges in a few of the majors, one may be impressed by the action, but the moves appear to be reactive rather than proactive. It could be dangerous today to buy or sell breakouts because of thin trading conditions and low momentum so traders should watch for opportunities to short near resistance and buy near support. Look for a choppy, two-sided trade to develop throughout today’s session.

The greenback has weakened in a move towards riskier assets as investors place bets the Federal Reserve Chairman Ben Bernanke will indicate further steps to aid the ailing US economy, namely a third round of quantitative easing. Markets are somewhat on hold in the lead up to the keynote speech the Chairman is due to give on Friday however the possibility further liquidity being injected into the market is certainly placing some downward pressure on the Greenback. Also contributing to the fall is a drop in US New Home Sales, falling to 298,000 for the month of July, down from 300K in June. The Euro pushed through to almost break 1.4500 against the struggling US Dollar, also being helped by overall better than expected Services and Manufacturing PMI from the local region. Many are finding it difficult to shake the black cloud still hanging over Europe and after the German Zew survey for Economic Sentiment came in considerably worse than expected the Euro shed most of its earlier gains. Finding support t 1.4380 the shared currency opens higher at 1.4430 and the Yen, in absence of any word from the Bank of Japan, finds itself relatively unchanged at 76.70.

Now, on to our open positions and new trades. Lets take a look at the specifics:

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New Orders

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