I have been covering the US Commodity Future Trading Commission’s (CFTC) efforts to revamp the regulatory structure that governs forex, since it was unveiled earlier this year. On August 30, the CFTC formally published the “final regulations concerning off-exchange retail foreign currency transactions. The rules implement provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the Food, Conservation, and Energy Act of 2008, which, together, provide the CFTC with broad authority to register and regulate entities wishing to serve as counterparties to, or to intermediate, retail foreign exchange (forex) transactions.”

Not only has the CFTC clearly established its authority to be the primary regulator of retail forex, but it has also laid out specific regulations. Chief

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If you chart the course of the Australian Dollar over the last twelve months alongside the S&P 500, the overlap is jarring. You can see from the chart below that the two lines zig and zag in almost perfect unison. It would seem that there was a slight break in the second quarter of 2010, but even this is an illusion, since the Aussie and the S&P continued to rise and fall in the same patterns over that time period, differing only in degree of fluctuation.

Since the S&P 500 is a pretty good proxy for risk it can be said that the Australian Dollar is a manifestation of investor risk appetite.

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The EURO nosedived on Tuesday from a three-week record versus the USD hit yesterday as rekindled worries about the European banking sector prompted investors to reduce risks.

The euro declined 0.6 percent on the day to $1.2797 following triggering stop-loss orders in the $1.2850-60 area, as a Wall Street Journal report stoked fears about the probability of European banks by highlighting the weakness of euro zone stress tests earlier in the year.

The single currency was under further pressure as Germany’s banking association said on Monday the country’s 10 biggest banks may need 105 billion euros of additional investment under a revamp of banking rules designed to prevent future financial crises.

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We have now broken out of the channel to the downside. We are currently sitting on the S6 sixth support from the top at 1.2729  We should see a small bounce at this level and then head to the targets at the 0.500 fibo ( 1.2608) with further targets at the 1.2460 area.