There was a slow down in some price developments, while other crosses remained very active. For the most part USD has paused its advance, except for against GBP. Cable really took a beating today. The Kiwi and Aussie on the other hand, rebounded sharply, after their precipitous fall. Time will show if this is the bottom. I don’t think so and expect farther price deterioration over time, but what do I know?
There is something surprising in recent price action- currencies virtually didn’t react to the crisis in Georgia. Granted, it is very localized, but at times of high oil prices to could potentially spur another price run. Whose to say, that Russia will not stop exports for some time, taking about 10M barrels a day off the market? Should that, or even talk about happen, just imagine the wild gyrations in all securities, including currencies.
But, as stated many times before, I don’t trade the news, or their implications, only the charts.
Speaking of which, here is my trade from yesterday in USD-CAD.

I entered the trade at 1.0622 and few hours later I was done at 1.0672, 50 pips. I’m happy with it.
At this point I have little conviction about directions of most crosses and would like to give price time to develop . But I’m going to try a small trade here.

I think of buying GBP-CHF at 2.0350. Objective here is about 100 pips. I expect Thursday to be relatively quiet, but Friday to see some volatility.

Mike K.