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Euro Recovers, Still Below Resistance

Posted on October 5, 2011 at 7:29AM GMT - 157253 CommentsEuro+Recovers%2C+Still+Below+Resistance2011-10-05+07%3A29%3A34Liviu

Quote of the day: “There is no security on this earth, there is only opportunity.” ~ General Douglas MacArthur

Good morning. Monday’s opening price which is providing resistance is currently being tested as the euro recovered some ground, but the daily charts remain bearish as long as there are several resistance layers above current trading zone. The 4-hrs charts are slightly bullish right now and we should keep an eye on this resistance range between 1.3350 and 1.3400:

Euro Vs US Dollar Chart 4hrs 10-5-2011

Current recovery looks like a normal correction, thus looking for new selling opportunities on signs of weakness is probably the best bet for now.

EURGBP

As seen below, the cross is approaching resistance around the 50% retracement value of last up leg. Daily charts are still bearish but in case of a break above this resistance at .8650, buyers may have a good reason to push it higher

Euro Vs British Pound Chart 4hrs 10-5-2011

EURJPY

The correction continues after the cross reached a 10-year low but it’s a fragile ground, so in case it retests support around 101.70, selling on the breakdown seems a good option. To the upside, resistance resides around 102.75 and 103.30 (61.8% of recent decline) (more…)

- Continue reading: Euro Recovers, Still Below Resistance

More Downside Ahead For The Euro

Posted on October 4, 2011 at 7:10AM GMT - 157136 CommentsMore+Downside+Ahead+For+The+Euro2011-10-04+07%3A10%3A22Liviu

Quote of the day:“The world tolerates conceit from those who are successful, but not from anybody else.” ~ John Blake

Good morning. The ugly gets uglier for the euro as it just reached a 10-year low against the Japanese yen at 100.75 and extended its decline against the dollar to a fresh multi-month low at 1.3165 before pulling back to intraday highs around 1.3220 while writing this. Short-term resistance starts around this week’s opening level at 1.3350 and is followed by 1.3430/50 and 1.3530/50 – as seen below:

EURUSD

Looks very bearish as long as it trades below 1.3350. However, it would remain bearish even in case of a rally to 1.3530, so don’t expect any miracles: rallies, breakdowns = new selling opportunities.

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

EURJPY

102.00/50 is where to expect the sellers to re-enter the game

Euro Vs Japanese Yen Chart 4hrs 10-4-2011

AUDNZD

The short setup signaled by the reversal pin bar, as noted in my post yesterday, looks good so far. I think there’s more downside to be seen, retesting recent bottom support. (more…)

- Continue reading: More Downside Ahead For The Euro

Euro Getting Closer to Next Level Down: 1.30

Posted on October 3, 2011 at 4:06AM GMT - 157051 Comment2011-10-03+04%3A06%3A41Liviu

Quote of the day:“Always listen to experts. They’ll tell you what can’t be done and why. Then do it.” ~ Robert Heinlein

Good morning. The euro opened lower this week as Greece acknowledged it would miss the deficit targets agreed as part of July’s bailout package. European finance ministers are meeting today to discuss bailout measures.

EURUSD

Daily, weekly, 4-hrs charts – all look so bad that the only reason to look at them is to identify new levels where to set selling orders.

Euro Vs US Dollar Char 4hrs 10-3-2011

Euro Vs US Dollar Char Daily 10-3-2011

USD Index

Dollar rallies, retesting recent top side. Break above 80 would be yet another bad news for the stock market

US Dollar Index Chart Daily 10-3-2011

AUDNZD

(more…)

- Continue reading: Euro Getting Closer to Next Level Down: 1.30

Weekend Links 10/2/11

Posted on October 2, 2011 at 3:29PM GMT - 15701Leave your thoughtsWeekend+Links+10%2F2%2F112011-10-02+15%3A29%3A06Liviu

Hello. Here are some interesting articles you may be interested in:

Here Is What Is Wrong With The Economy (And How To Fix It) (Business Insider)
The forever recession (and the coming revolution) (Seth’s Blog)
The bots of FX (MacroBusiness)
Greece Should Default and Abandon the Euro (EconoMonitor)
German bailout vote is ‘too little, too late’ (Telegraph)
Europe moves toward bailout fund — knowing the real debate is to come (The Washington Post)
German bailout vote is ‘too little, too late’ (Telegraph)
This Is What Happened On One Of The Craziest Days Yet At Occupy Wall Street (Business Insider)
Wall Street Protest Starting to Look Like Egypt (ZeroHedge)
OCCUPY WALL STREET: Analyzing Their List Of Grievances… (Business Insider)
10 Currencies That Got Slammed In Q3 (Business Insider)
Europe Blinking Red (Counterpunch)
Currency Revulsion (Credit Writedowns)
There are no rogue traders, there are only rogue banks (The Big Picture)
What Would It Take To Save Europe? (The Baseline Scenario)
HFT is changing the ecology of the FX market, says BIS committee (Risk.net)
Government and the Power to Issue Fiat Currency Out of Thin Air (Mish’s GETA)
Cat Saturday Gallery (theCHIVE)

Also, don’t miss this video:

Cheers, enjoy your Sunday!

- Continue reading: Weekend Links 10/2/11

The Sell-Off Continues

Posted on September 30, 2011 at 7:20AM GMT - 156919 CommentsThe+Sell-Off+Continues2011-09-30+07%3A20%3A22Liviu

Quote of the day: “There art two cardinal sins from which all others spring: Impatience and Laziness.” ~ Franz Kafka

Good morning. The dollar holds gains as the euro is retreating after yesterday’s short-lived attempt to reach the $1.37 zone. The resistance around 1.3700 highlighted in my yesterday’s post is intact and as long as the euro holds below, selling on signs of weakness is probably the best thing to do. Let’s check the dollar index chart before continuing with the EUR and others

USD Index

There’s a horizontal support line around 77.50 right now where the dollar found a temporary resistance some days ago. Well, if sellers manage to breach through the said line – selling on the break lower could be worth it. Meanwhile, upside remains favored as the dollar is strengthening across the board