Forex Investment and Currency Trading

The initial package has been rejected, despite assurances overnight it would be passed.  The Dow briefly fell more than 700 points (biggest intra-day point drop ever), but managed to recover some of its losses.  The TSX is down 6.92%.
Further attempts will be made to try and get this bill passed.  FX markets initially saw a hard US dollar sell off, but are back where they were before the announcement as people are looking for another attempt at a resolution.
USDCAD ~1.0395
EURUSD ~1.4470

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Short-Term Outlook: Breaking Above 1.0415
USD/CAD briefly broke the upside of 1.0300-1.0415 trading range, but failed to test 1.0495. With the hourly studies losing some upward momentum near overbought levels, resistance at 1.0452 and 1.0495 is expected to attract short-term selling interest for a test of support at 1.0375. An hourly close below this level would then target 1.0304).

Medium-Term Outlook: Close Below Strong Support at 1.0343 Would Target 1.0207
A daily close below the strong support level at 1.0343 would amplify the corrective tendencies that are present in USD/CAD. Resistance at 1.0495 and 1.0546 is expected to contain rallies for the time [...]

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As has become almost commonplace, it was another wild weekend, as official entities rushed to deal with financial turmoil before the Asian open to remove potentially confidence crushing uncertainty. If anything events in the US went about as well as they could. US policymakers managed to find enough common ground to find the financial sector bailout package (TARP), which has ballooned from Paulson’s original three-pages to now 110. The House will vote on the measure today and they all 435 members can hit the campaign trail touting how they all came together at a time of national need, and how [...]

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The deep liquidity and tight trading spreads in EUR/USD make the pair ideal for both shorter-term and longer-term traders. The price action behavior in EUR/USD regularly exhibits a number of traits that should be aware of.
Trading tick by tick
In normal market conditions, EUR/USD tends to trade tick by tick, as opposed to other currency pairs, which routinely display sharper short-term price movements of several pips. In trading terms, if EUR/USD is trading at 1.4910/13, there are going to be traders looking to sell at 13, 14, and 15 and higher, while buyers are waiting to buy at 9, 8, 7, [...]

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