Forex Analysis - 12/12/05

Hello, let's see what's going on in the Forex market today... Well, the dollar is taking a beating against the euro and the pound due to buying in the middle east and asia, and traders here in the US readjusting their positions before the Fed meeting tomorrow. This week is action packed full of economic reports. Hopefully, I can catch some moves and make some pips. I'm thinking of one of two ways to play the strong move. 1. Wait for retracement and go long euro or pound... 2. Wait to see if there is going to be consolidation and possibly go short. So, basically we gotta wait and see. If i see a trade forming I will post again with an update.

My charting software is down so I can't really comment on the other pairs. I'm kinda upset because I had a great chart setup I was going to post yesterday on USDCAD... but xtick has been down all weekend!! ARRRRGGGHHH! Okay I'm over it..time to move on hehe. Hopefully it will be back up soon. Well, I am still thinking of getting into USDCAD. There isn't much in the way of economic news in Canada so I think it'll continue to react to technicals, most notably the 50 sma. It's been bouncing off the 50 sma to the downside, plus the pair is in a downtrend...so here's a trade idea:

short USDCAD @ 1.1531...stop at 1.1560...profit at 1.1502

Roughly a 1:1 reward to risk ratio.
Let's see what happens!

OPTION UPDATE: Sold Iron condor on RUT 100 Jan at
730/740/650/640 @ 2.00 per contract.