Canadian Dollar Poised for a Move?

At the end of last year the Canadian Dollar Seemed ready to retake it’s ground.

It appears as if there may be another attempt as the current Daily chart I showing a very strong trend line ready to “Bounce or Break”

Triangles Past and Present - Second Try?

USD-CAD – (above)  Potential for a drop? Chart on the Right is previous Triangle from February that  (click to Enlarge)

Head and Shoulder Pattern Completed on EUR-GBP

The 4 hour charts above on the Euro-Sterling above shows the Head and Shoulder Pattern that “grinded” it’s way slowly to completion – dropping from 0.9150 to 0.8960.  Chart on the Right is the original chart posted on April 3, 2009 when price was initially testing support(click to Enlarge)

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 The Bizarre Gets More Momentum

- Are you no longer impressed with Jaw Dropping Jobless Claims?

- Tired of Hearing about Housing and Mortgage Issues?

-  Not Interested in Nationalization of Banks Around the Globe?

-  Do you find Zero Percent Interest Rates - UN Interesting?

-  When 1,000 pages of legislation with Trillions of Dollars for ”Couch Warming”….. I mean “Stimulus Initiatives” becomes so boring that the largest spending bill in the history of mankind gets passed without even being read and “Cram Down” becomes part of everyday business jargon….Well Inquiring minds might like to know who’s been cheating on their taxes in Swiss Bank Accounts…

 The New Transparency - Hiding of Assets Overseas Comes to and End?

As the Global Financial Markets Continue with the Negative Feedback Loop. - We needed more signs that things are changing - Now the Rich and Famous may be getting nervous as Swiss Bank Giant UBS has come to an agreement to disclose clients in the United States that opened bogus business entities to avoid paying US Taxes.   

Slap on the Wrist for UBS ?

Word of an agreement between UBS and the IRS came quickly Wednesday, with a mere $780 million dollar fine. Come on guys, not even a couple of Billion? These days a few hundred million is government chump change.

Just an Honest Mistake? - Who’s Really on the UBS List?

According to the Associated Press, Devlin Barrett’s article goes on to state that the IRS is calling on tax cheats to turn themselves in. My question is will they make the entire list public, and what about all the other tax cheats, like the Treasury Secretary - Perhaps Tim has an account over there?  I guess all they will need to do is say they made and honest mistake.

Euro Head and Shoulder - Trend Line Break In Play

EUR-USD Daily Chart  - (Click Chart to Enlarge)

Last Week I pointed out this Head and Shoulder pattern on the Euro that was poised to break the neckline. I received comments that his was not a Head and Shoulders, to which I reply - It’s a strong Support Line no matter what you say… And it is now broken. Where it goes from here, Who knows - the fundamentalists will point the blame on Eastern European Banks, or some other scapegoat if it continues down… If the Euro strengthens, It won’t be because of Trichet.

Pound Sterling Consolidating against the Dollar

GBP-USD  4 Hour Chart  - (Click Chart to Enlarge)

The Pound is Poised for something as this chart shows it has gone sideways

long enough.

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Dollar Acting Schizoid Ahead of G20

The “normal” correlations of currency pairs was anything but – as the Euro surged from the 1.2500 range to over 1.2850, while the Pound Sterling lost ground most of the day closing relatively unchanged at around 1.4800. Meanwhile the Carry Trade continues it’s gyrations as the dollar gained ground against the Yen while losing against the Aussie. The Canadian Loonie also lost it’s marbles dropping from 1.2400 to 1.2100, All this within a traders dayze.

Review of the Charts - 3 Days Later

(Above)  Aussie Maintains Consolidation but Tests Support (click on Charts to Enlarge)

(Above)  Dollar - Swiss pair continues upward trend while creating a new lower support line

Above-  Euro makes almost a double bottomand stays within Trend Channel - (click to Enlarge)

 Above - Pound Rides the Lower Trend Channel - Testing Below  (click to Enlarge)

President Bush Addresses Manhattan Institute
The currencies seemed to get reactive around the same time as President Bush addressed the Manhattan Institute mid day. His speech seemed to be a reminder of why the Free Market system must survive despite the changes that must be made to move into the interconnected global markets. Bush may have been alluding to the Bretton Woods agreement when he stated that decisions and changes must be made that, “Better reflect the 21st century not those based in the 1940’s” – which leads me to discuss the….

Historic G20 Meeting starts in Washington
UK Prime Minister Harold Brown has been quoted as saying that decisions over the next few months will reshape our world for the next few decades or more. President elect Obama is sending former secretary of state Albright to monitor the discussions. In my opinion he is missing an opportunity to understand the players and issues – yet his appearance may have been a distraction - so It’s a toss up.

Tensions may run high, and with 20 nations sovereignty on the line - the odds are that this meeting will be a meeting to hold more meetings. UN-less some agreement has already been drafted behind the scenes –

The news on Thursday morning was bleak

New Weekly Jobless Claims were far worse than expected with 516,000 new additions to the unemployment rolls and the US Trade Numbers showed a large drop in exports. But that did not stop the market from surging ahead.

The Good News
The MBA Mortgage Purchase Applications rose 9% and Refinancing applications were up 16% as lower interest rates are filtering down to the buyers that need to sop up the liquidity of the flooded housing market.

Friday Brings Retail Sales and Consumer Sentiment

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