Quite a bit of surprise came abouts in the interest rate decision yesterday with the Bank of Canada cutting rates 50bp and the Reserve Bank of Australia upping theirs by 25bp.  Aside from that, nothing has really changed and the dollar sentiment is still bearish with the USD/CAD trading below parity and AUD/USD remaining at all-time high levels.  What has changed is that risk-aversion remains high due to disappointing results from big banks and technology companies in both Canada and the U.S. which has led to a pullback in Yen and Swiss currency pairs.  I haven’t seen much pairs in an trending environment lately however I did profit quite nicely off one.

EUR/GBP

As you can recall from this trade I took last Thursday on the Daily chart, it has been moving relatively sideways until last night where it shot up for a good 25 pips to the upside breaching above its prior triple top confirmation on the 1-hr.  Hence my reasoning for taking one half of position off resulting in a profit of +34 pips.  The other lot will trade risk-free but 0.7695 remains a profit target as the pair seems to be trading a little ahead of itself.

EUR-GBP, March 5, 2008

Another potential setup on the 4-hr chart for the EUR/USD with a breakout of the 1.5300 area.

EUR-USD, March 5


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