Commentary on the USD/CHF and GBP/CHF pair Oct.04/07
Forexmentor.com Forex Trading Price Action
In Tuesday’s AM Review, I reported that the Big Dogs were short the Swissy, and long the U.S. dollar – extremely so in both cases. At the same time, I indicated that conditions augured well for an advance in the USD/CHF pair – not to mention the fact that the MACD indicator was in oversold territory. Well, surprise, surprise – two days later, I can now report that this pair has in fact turned the corner, and headed for higher ground.
In that same AMR, I pointed out the fact that the GBP/CHF pair had formed a 1-2-3 bottom, and it has since moved higher. On other fronts, it looks like the median resale price for houses in the U.S. is putting in its first national decline since the Great Depression in the 30s.
Canadian banks are faced with a credit crunch that could really hit them hard, due to a lax regulatory regime. If global financial players lose confidence in the Canadian ABCP (Asset-Backed Commercial Paper – read, Sub-Prime Mess), the banks may be faced with being on the hook for tens of billions of dollars.
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