The GBP/JPY pair is beginning to consolidate into a range - from 202.50 to 205.65 While another re-test of support at 202.50 seems likely, if that level breaks and then re-tests successfully as resistance, then we may see a move down to 200.10 or 198.90 If we break above resistance at 205.65, we should go to 206.59 and then come back down to re-test 205.65 as support.  If price can hold above that level, then targets at 207.60, 209.18 or 210.75 come into view.

Not a whole lot to report today.  Choppy, rangy markets - so be careful out there.  Draw your trendlines, and trade inside of them - until price gives you a break followed by a successful re-test (support becomes resistance, and vice versa). All eyes will be on consumers this week, as many US retailers report their Q2 earnings and overall sales for the first half of 2008.  We will also get Canadian retail sales on Wednesday and UK retail sales on Thursday. Oil is still obeying

Gold and silver have both been tumbling in recent weeks.  Is there a bottom in sight?  There are certainly some likely candidates. For gold, 795.25 is currently resistance and 774.33 is support.  If support should give way, I expect to see a bottom, for now, at 730.23.  If the bulls come rushing in, then additional resistance is waiting at 812.08 and 845.72 Silver, on the other hand, may have already touched its bottom.  12.68 is the most likely place for it to settle,

The consumer price index came in at 0.8% today, rising at the fastest pace in 17 years.  Analysts had been forecasting an increase of 0.4%.  The largest increase came in food and energy, with the core CPI (which excludes those elements) posting an increase of 0.3%, compared to estimates of 0.2% In addition, existing home sales fell by 16%, with the median price dropping by 7.6%, falling to a 10-year low.  Worse still, forecasters are saying there is room for further drops, as

Has the USD/CAD finally formed a top?  Perhaps. Indications (both technical and fundamental) are certainly for a drop in the near-term.  What happens in the longer-term very much depends upon on where this drop finds support. Initial targets are 1.0539 and 1.0431

Well, looks like we’re in for another fun day today. Big moves already at the start of the European session.  Oil is dropping slightly, and gold by quite a bit - so far it looks like things are setting up for a Dow and Dollar bullish day.  Next support for oil should be 116.34, and for gold at 856.31, meanwhile the Dow has support at 11363 and next resistance at 11702. The USD/JPY has hit our target of 109.94 earlier today, the USD/CHF at 1.0760, and the EUR/USD is almost there -

Oil is well worth tracking because it has so much influence on both the Dow and the US Dollar (and therefore all the major currency pairs which cross it).  Fundamentally, the case is much stronger for oil heading up over the longer term, but where is it likely headed in the nearer term? The daily chart for oil is beginning to trace a bullish divergence, and the weekly stochastics are showing signs of turning as well - all of this points to a potential bottom.  119.68 is a key level

The Loonie has been moving quite strongly lately as the Canadian Dollar continues to lose value against a US Dollar which has, for now, found some footing thanks to cooling oil prices.  But a pullback today has everyone wondering if we’ve seen a top for this pair. For now, perhaps - but longer-term there may be still room left to go. We encountered resistance at the 127% Fibonacci extension at 1.0457, then bounced down to test  1.0411 - also another Fib level. Overall, since the

European session has been fairly choppy and rangy thus far, and I expect more of the same going into the US session as well - there is still lots of uncertainty out there in the markets.  HSBC just announced a profit decline of 29% for the first half of 2008, Deutsche Bank had its credit rating lowered after a $3.6 billion write-down, and Fortis saw a drop of nearly 49% for the 2nd quarter. The United States this weekend saw the closure of the 8th bank since the start of the

The precious metals saw a cooling this week, due largely to the drop in oil prices and the strength that lended to the US Dollar and the Dow. Gold just broke below support at 959.48, and may be on its way to test 946.35.  If the drop continues beyond that, then 929.13 is the next likely candidate for support.  If we resume moving up, then 974.22 and 991.43 are the most likely resistance. Silver, meanwhile is comfortably resting at 18.39 support,
with additional support just below at