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The most recent wave of financial turmoil subsided this past forex trading week, leaving investors wary and looking for the next round while many currency pairs consolidated. Measures enacted by the U.S. Federal Reserve and other central banks seem to be stabilising financial markets, although Goldman Sachs forecast eventual losses of US$460Bn from the subprime [...]
In a previous article, backtesting was conducted utilizing moving averages of varying time periods to determine their most profitable application as entry points on the AUD/USD daily chart. This article continues that backtesting to fine-tune those results.
In the previous testing, the 10-day over 30-day combination was the most profitable, with a return of 1,435 pips; [...]
The Easter-shortened financial week began on Sunday for the U.S., with the announcement of an emergency 25bps cut to the discount rate and the fire sale of Bear Stearns to JP Morgan at the used-goods price of $2/share, funded in part by the Federal Reserve and brokered in part by the U.S. Treasury. Other measures [...]
Bold and creative liquidity initiatives by the U.S. Federal Reserve, backed by the European Central Bank and the Swiss National Bank, calmed financial markets for the first half of the forex trading week; however, meltdowns at multiple major financial institutions, including Drake Capital, Carlyle Capital, and Bear Stearns, sent global equity markets tumbling and forced [...]
One popular method of using moving averages in forex trading is to plot crossovers for the generation of buy and sell signals. In this method, two moving averages with different time period inputs are plotted atop a currency pair’s chart. When the shorter-term moving average rises above the longer-term, a buy signal is generated; when [...]
This forex trading week saw continued weakening of the U.S. dollar against many major currencies as the world’s largest economy enters, if not a recession, then something remarkably similar. No bottom has yet been reached for the global financial crisis, with current loss estimates at $181bn and investors again reducing high-yielding risky positions.
With carry trades [...]
The third attempt was the charm: EUR/USD breached the psychological 1.50 barrier, breaking free from the 1.43–1.49 range in which it had been trapped since November 2007 and touching 1.5239 before closing at 1.5179. Several other currency pairs reached record levels during this forex trading week, including NZD/USD at 0.8213 and EUR/GBP at 0.7677, while [...]
