Forex

Looks like the VIX is still headed higher..

On dailyfx+:
Soaring VIX Keeps AUD Under Pressure San Francisco, March 17. The AUD/USD remains heavy at 0.9178 with the soaring VIX a factor seen weighing on the antipodean currency. The rise in VIX reflects the high risk aversion with a good inverse correlation between the AUD and VIX performance. The VIX has rallied to 35.60 highs this morning and the highest in two months with credit contagion fears and counterparty risk concerns still dominating. The index is currently at 34.68. Gold has bounced slightly off its lows near $1000 this morning and trades just under $1010.00.

Hi rahul
i get 15 pips gbp/jpy short, from your morning update

Is anyone in any trades currently? Any bias or plan of action? I don't see much of anything transpiring right now, not even scalps. I'm waiting for a good sell signal, perhaps later this pm? Any opinions?

On the daily...

BB 20,3 is at 196.30ish, we should at least have a move to this area. Looking to set a long as close to the lows as possible. I will probably use hedging if we break through the low. I am seeing any opportunity to set a trade against a BB 20,2 band on the 15 minute, as price action is in the middle of the current 15 min period I will wait for confirmations...


NEVER GIVE UP!

Good to know that many of us got some good PIPs from the recent move. Slept through most of the EU session...good to see the bounce back to 195.00/195.50 level.

I think the bounce may go to 197 handle if stock markets stay supported.

Thanks Stephen
I can see it going up to 196ish as you said, perhaps even 198. I'm very surprised it hasn't been a "bloody Monday" yet. Vix is way up. Bush will be making a speech later....

Got +73 this am anyway.

So we most likely are consolidating. Price will eventually exceed 195.30, but we will probably test 193 area. Potentially a long from there or a break of current resistance will take us to at least 196.30.

Hello all,

The debasing of the US dollar is the issue here everyone. Confidence in American investment companies is critical. Bear Stearns would not have happened if there wasn't a run on the company. The same happened to Thornburg even though it did not have ONE sub-prime mortgage.

The Fed will further debase the dollar tomorrow. 50, 75, 100 or 125 will only tell us how much it will be debased. What might confuse the reaction will be how they add liquidity.

In any event, I guess that the dollar going to .80 in the Yen is a real possibility. Europe has not debased its currency and its markets have tanked but its currency has remaind strong.

I'm waiting for the BOJ to intervene. So far, they've refused to comment on intervening...the calm before the storm? I don't think US is done with the losses yet either.

While I am sure the BOJ could intervene at any point, I think it is quite interesting that the current governor (FUKUI- my mortal enemy), is retiring on Wednesday. He had been a key person in previous interventions. With him out of the way, the shape of future interventions will be fundamentally different. This alters my expectations of BOJ interventions anytime soon, especially since they do not have a replacement governor.