Monday, August 28, 2006

Silence is Golden

It was another boring day today with the lack of economic reports to really fuel any movements. Browsing around it looks like the Euro made new highs against the Yen but since I don't trade that pair I really didn't look too much into it. The EUR/USD did absolutely nothing which wasn't a surprise since there was really no reason for it to move. Consequently, the Alba system did not produce any trades (see below).

I am still long on the USD/JPY from last week. The Yen did gain a little ground on the dollar but since it's still above 117.00 I'm still convinced that my target will get hit at 117.71. I am still holding until I see anything fishy. Speaking of Japan, it looks like the US National Basketball team is causing havoc over there as they smothered Australia in the semifinals two nights ago. Finally! A US Basketball team that wins!

And I know you're probably tired of hearing this but I still don't see any convincing setups on my charts. Frankly, it's boring right now. Everything I see is still in the gray zone and until I get a convincing signal, I am not going to force anything.

As far as tomorrow goes, we could see some movement with both the German Consumer Confidence coming out at 2:00 am EST and the US Consumer Confidence coming out at 10:00 am EST. Remember, we're looking for signs that the ECB will tighten rates and/or the Fed will pause their rate hikes. It's all about the rate differentials so we want to see a convincing fundamental sign that will hint at a widening rate between the EUR/USD. Until then I think we will still see the 2700-2900 range movement. Yawn... FOMC minutes also come out tomorrow at 2:00 pm EST so watch out for that. I usually don't trade after 12 noon anyways, so I probably won't even be looking at my charts. Hopefully tomorrow I will have something more exciting to write about.

Happy trading everyone!


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