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Euro Holds Gains, Market Awaits Decisions from Brussels Summit

Posted by Liviu on October 26, 2011 – 7:07AM GMT - 15861Leave your thoughts2011-10-26+07%3A07%3A56Liviu

Quote of the day: “For every action there is an equal and opposite government program.” ~ Bob Wells

Good morning. Today is an important day for the euro, as EU leaders are meeting in Brussels to continue negotiations on an agreement to deal with the euro-zone crisis. The euro holds gains around $1.3900, not much changed since yesterday. Well, it’s the market optimism that keeps the market steady these days, so one can expect a large decline if the leaders will eventually fail to announce a concrete plan.

Let’s see what are some of today’s interesting charts:

USD Index

Support at 76 is still intact

US Dollar Index Chart Daily 10-26-2011

EURUSD

The market is rather quiet right now, but the euro maintains gain near 1.400 where key resistance is formed. I think it’s best to wait for the market reaction to news coming from the Brussels Summit.

Euro Vs US Dollar Chart Daily 10-26-2011

AUDUSD

The Aussie dollar pulled back to test support at former resistance line. As mentioned yesterday, it’s probably a good level to look for buying opportunities, but careful. I wouldn’t bet on this support level before any news coming from Europe. (more…)

- Continue reading: Euro Holds Gains, Market Awaits Decisions from Brussels Summit

Dollar Challenging Key Support Ahead of Wednesday’s Summit

Posted by Liviu on October 25, 2011 – 6:53AM GMT - 158492 Comments2011-10-25+06%3A53%3A03Liviu

Quote of the day: “The future, according to some scientists, will be exactly like the past, only far more expensive.” ~ John Sladek

Good morning. The euro holds onto recent gains orbiting around $1.2900, as the markets are optimistic – awaiting details of a euro-zone debt deal to be finalized by the euro leaders tomorrow.

Today’s charts of interest:

USD Index

Important horizontal support is being tested and a potential break below the said line would coincide with EURUSD’s break above $1.400

Dollar Index Chart Daily 10-25-2011

EURUSD

No reason to sell yet – in fact: it’s probably better to ignore the pair until tomorrow, depending on the summit’s outcome

Euro Vs US Dollar Chart Daily 10-25-2011

There are much better opportunities these days in AUD pairs

AUDUSD

Uptrend is intact and strong enough to look for new buying opportunities on minor intraday pullbacks towards support at 1.0350-1.0400 (more…)

- Continue reading: Dollar Challenging Key Support Ahead of Wednesday’s Summit

Markets Recover on Debt Crisis Optimism

Posted by Liviu on October 24, 2011 – 6:39AM GMT - 158363 CommentsMarkets+Recover+on+Debt+Crisis+Optimism2011-10-24+06%3A39%3A10Liviu

Quote of the day: “Get your facts first, and then you can distort them as much as you please” ~ Mark Twain

Good morning. The dollar continues to lose ground as risk sensitive currencies rebound after consolidating for a week. Short covering also fueled current recovery along with market optimism that European Leaders will act decisively – solving the region’s debt crisis. The final decisions about the Euro-area debt crisis is expected to be made at the Brussels summit on Wednesday.

According to latest COT data, bears are still around and are not impressed:

Euro COT 10-24-2011

As seen below – the euro is aiming towards 1.400 where next resistance is formed. The “Risk On” game is likely to continue as Europe awaits decisions from Brussels summit.

Euro Vs US Dollar Chart Daily 10-24-2011

The S&P500 COT chart is more interesting, as there’s a clear change in stance

S&P500 COT 10-24-2011

Which means that dollar bears’ favourite asset is not the euro, but hey, it’s been like that for two years – and the reasons are obvious.

(more…)

- Continue reading: Markets Recover on Debt Crisis Optimism

Market Remains Choppy Ahead of Debt Crisis Summit

Posted by Liviu on October 21, 2011 – 7:36AM GMT - 15826Leave your thoughts2011-10-21+07%3A36%3A34Liviu

Quote of the day:“What you risk reveals what you value.” ~ Jeanette Winterson

Good morning. Choppy trade is still the main theme as indecisions, rumors, nonsense and random good or bad news rule supreme these days – ahead of the two summits on Europe’s debt crisis. Looking at some of the most important currencies, one might reasonably draw the conclusion that it’s best to wait until next week, when the market conditions will eventually be clearer.

EURUSD

Euro Vs US Dollar Chart Hourly 10-21-2011

The 4-hrs chart doesn’t look any better, either

Euro Vs US Dollar Chart 4hrs 10-21-2011

AUDUSD

Same story as above, as the EURUSD – AUDUSD correlation is 80% to 90% on hourly and daily basis, and there’s no surprise that the EUR is the main driver of risk trade these days.

Australian Dollar Vs US Dollar Chart 4hrs 10-21-2011

AUDNZD

Here’s one of the very few charts you can find today that doesn’t look THAT bad. Yesterday’s fast recovery after testing support at 1.2800 suggests that buyers are still in control and holding long or looking for buying opportunities on the break above 1.2930/50 are probably the best bets right now.

Australian Dollar Vs New Zealand Dollar Chart Daily 10-21-2011

AUDCAD

This is another interesting setup to watch, as support around recent bottom is under pressure. Maybe it’s time for a corrective move lower

Australian Dollar Vs Canadian Dollar Chart 4hrs 10-21-2011

have a great weekend!

- Continue reading: Market Remains Choppy Ahead of Debt Crisis Summit

Euro Retesting Short-Term Support as Debt Clock Ticks Down

Posted by Liviu on October 20, 2011 – 5:07AM GMT - 158153 Comments2011-10-20+05%3A07%3A21Liviu

Quote of the day:“The only time you don’t fail is the last time you try anything – and it works.” ~William Strong

Good morning. Yesterday’s rally towards $1.39 has been short lived as no agreement has yet been on the size of the euro-zone bailout fund. Therefore, selling accelerated across equity correlated currency pairs. As the weekend is approaching, all eyes will be on Brussels Summit on Sunday.

Meanwhile, here’s what is worth watching:

EURUSD

More selling is likely as last attempt to climb towards $1.400 has failed. Keep an eye on support around 1.3700.

Euro Vs US Dollar Chart Daily 10-20-2011

AUDUSD

Same story here, as everything is correlated – so we don’t need to watch 40 charts to know what 40 currency pairs are doing: one is enough… maybe two. (more…)

- Continue reading: Euro Retesting Short-Term Support as Debt Clock Ticks Down

Euro Holds Gains, Market Awaits Decisions from Brussels Summit

Dollar Challenging Key Support Ahead of Wednesday’s Summit

Markets Recover on Debt Crisis Optimism

Market Remains Choppy Ahead of Debt Crisis Summit

Euro Retesting Short-Term Support as Debt Clock Ticks Down

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