March 14, 2006 Forex Market Recap

Dollar retreats broadly against all other currencies. We actually have good fundamental and technical reasons for the dollar's decline. On the fundamental side, the US current account deficit has widened to a new record. The price action was further fueled by good technical indications on the longer time-frame charts such as the 60-minute and 240-minute.

Below is a technical chart I used to enter my short USD vs CHF trades, which is based on the momentum indicator example given earlier.