FX Trading Blog | innerfx.com

Euro Recovers, Remains Vulnerable

Posted by Liviu on November 14, 2011 – 8:20AM GMT - 159731 CommentEuro+Recovers%2C+Remains+Vulnerable2011-11-14+08%3A20%3A21Liviu

Quote of the day: “Depend not on fortune, but on conduct.” ~ Publilius Syrus

Good morning. Contrary to my expectations – the dollar lost ground on Friday on hopes that the new leadership in Greece and Italy will help their countries and the Euro-zone, respectively, to avoid a financial disaster.

EURUSD

As we can see in the chart below, the euro is still in recovery mode, at least from a short-term perspective. Resistance formed around 1.3700 has been breached and next upside barrier is now seen around 1.3850. The median retracement of the full move from 1.4200 to 1.3485 also stands around 1.3850, so that makes this level quite challenging. Bulls are probably looking for a break above in order to consider new buying opportunities, targeting recent top at 1.4250. I, for one, still see this upward move as corrective and would rather wait for a selling signal.

Euro Vs US Dollar Chart 4hrs 11-14-2011

The weekly chart is a bit more interesting as last week’s candle suggests that the recovery started at 1.3150 in early October is still underway. Anyway, keep in mind that rumors and optimism (more… or less based on reasonable facts) have been the main drivers of current recovery and we’ll most likely have more of the same, therefore technicals make little sense these days.

Euro Vs US Dollar Chart Weekly 11-14-2011

GBPUSD

My plan to look for a selling opportunity on the potential break of support around 1.59 is on-hold

British Pound Vs US Dollar Chart 4hrs 11-14-2011

but on the other hand – looking for a buying signal on the break higher is also a plan to consider, because of the potential bull flag formation we have on the daily charts:

British Pound Vs US Dollar Chart Daily 11-14-2011

GBPCHF

GBP is still one of the main CHF’s counterparts to benefit from recent SNB’s statements and there’s probably more upside to be seen. Support at 1.4400 seems quite strong, so buying it while it holds above 1.4400 seems a good bet

British Pound VS Swiss Franc Chart 4hrs 11-14-2011

Have a great day!

- Continue reading: Euro Recovers, Remains Vulnerable

Euro in Correction Mode, Remains Bearish

Posted by Liviu on November 11, 2011 – 8:22AM GMT - 159631 Comment2011-11-11+08%3A22%3A36Liviu

Quote of the day: “It is hard to fight an enemy who has outposts in your head.” ~ Sally Kempton

Good morning. The dollar pulled back across the board but remains bullish against some of its major counterparts such as EUR, GBP, AUD etc. Today’s Calendar is lighter ~~if we don’t count the imminent end of the world at 11:11 Am :)~~

EURUSD

As mentioned yesterday – 1.3700 is the level I’ll be watching if the pullback continues.

Euro Vs US Dollar Chart 4hrs 11-11-2011

GBPUSD

Cable continues to trade in range after yet another test of support around 1.59 yesterday. Anyway, the horizontal support line is still under pressure and it’s quite clear that sellers are already excited about this potential breakdown.

British Pound Vs US Dollar Chart 4hrs 11-11-2011

EURAUD

EURAUD continues to recover as the Aussie dollar is losing ground across the board. I remain bullish on EURAUD, expecting a test of 1.36 soon, maybe next week. (more…)

- Continue reading: Euro in Correction Mode, Remains Bearish

Bear Flag Broken – Euro Resumes Downtrend; All Eyes on Italy

Posted by Liviu on November 10, 2011 – 8:01AM GMT - 159541 Comment2011-11-10+08%3A01%3A19Liviu

Quote of the day:“The ability to delude yourself may be an important survival tool.” ~ Jane Wagner

Good morning. The euro has finally exited the consolidation range within the bear flag formation – as noted in my previous article. Current weakness is caused by the fear spreading to Italy in the widening debt crisis, as the Italian borrowing costs surged to 7.25% yesterday. The US Trade Balance and Bernanke’s Speech are some of the key events of today’s Economic Calendar.

EURUSD

Downtrend resumed as the bear flag formation was breached yesterday. I remain bearish on EURUSD and will look for new selling opportunities if price pulls back towards former support zone around $1.37. Well, maybe that’s a bit too far away

Euro Vs US Dollar Chart 4hrs 11-10-2011

USDCAD

I’ve been keeping an eye on this resistance zone around 1.0230 for a few days and it seems that it is finally being breached.

US Dollar Vs Canadian Dollar Chart 4hrs 11-10-2011

EURAUD

This is another interesting setup which I’ve addressed recently - it seems that there’s more upside for EUR against the AUD and 1.36 looks like a reasonable target (more…)

- Continue reading: Bear Flag Broken – Euro Resumes Downtrend; All Eyes on Italy

Euro Rangebound, Support Still Intact

Posted by Liviu on November 8, 2011 – 5:59AM GMT - 159471 CommentEuro+Rangebound%2C+Support+Still+Intact2011-11-08+05%3A59%3A16Liviu

Quote of the day:“Knowledge is the only instrument of production that is not subject to diminishing returns.” ~ John Maurice Clarke

Good morning. Sentiment across the board is little changed since yesterday – EURUSD still trading in a narrow range between $1.37 and $1.38. CHF pairs are still in focus as the Swiss franc has lost ground against its counterparts on speculation that the SNB will take further steps to weaken the CHF. As a result, EURCHF trades near resistance at 1.2500, USDCHF is back above .9000 and GBPCHF gained over two hundred points in yesterday’s rally, testing 1.4500 at time of writing this. Let’s see what are some of today’s interesting charts:

EURUSD

The bear flag formation highlighted yesterday is still intact and the EUR seems rather heavy. Keeping an eye on the lower side is probably the best thing to do right now, along with selling into euro strength

Euro Vs US Dollar Chart 4hrs 11-8-2011

USDCHF

Uptrend will probably continue and resistance is seen a bit higher, first at .9100. In case of a pullback, .8930/50 is where support should hold in order to maintain the uptrend.

US Dollar Vs Swiss Franc Chart 4hrs 11-8-2011

EURAUD

The resistance line which is connecting recent lower highs is being tested once again. Upside remains slightly favored and maybe this time we’ll see a breakout (more…)

- Continue reading: Euro Rangebound, Support Still Intact

Euro Retesting Support; Bear Flag Formation Suggesting More Downside

Posted by Liviu on November 7, 2011 – 8:22AM GMT - 15940Leave your thoughts2011-11-07+08%3A22%3A09Liviu

Quote of the day:“Achievable goals are the first step to self improvement.” ~ J. K. Rowling

Good morning. The euro is still trading in range against the dollar after the G20, NFP release and more news coming from Greece. Greek Prime Minister George Papandreou agreed to resign after the formation of a new government coalition.

Here’s a couple of charts to start the week:

EURUSD

Downside is still under pressure as the euro failed to maintain momentum at 1.38 and above. A bear flag formation is currently being seen on the 4-hrs chart, so it’s probably a good idea to look for new selling opportunities on the potential break lower, which might be fueled by news from Italy which is in focus these days.

Euro Vs US Dollar Chart 4hrs 11-7-2011

USDCHF

The Swiss Franc is losing ground across the board after SNB’s Philipp Hildebrand said that they are ready to act in order to further weaken the franc. Key resistance is not far above current trading levels, starting at .9100 – so it’s probably best to consider buying the dollar and others against the franc.

US Dollar Vs Swiss Franc Chart Daily 11-7-2011

USDCAD

Upside remains under pressure as the US dollar holds onto recent gains. A break above 1.0250 is in the cards (more…)

- Continue reading: Euro Retesting Support; Bear Flag Formation Suggesting More Downside

Euro Recovers, Remains Vulnerable

Euro in Correction Mode, Remains Bearish

Bear Flag Broken – Euro Resumes Downtrend; All Eyes on Italy

Euro Rangebound, Support Still Intact

Euro Retesting Support; Bear Flag Formation Suggesting More Downside

Stay up to date

Recent Posts

What I Read (Blogroll)

Weekly Popular Posts