Hello. The euro has climbed slowly against the dollar toward the 61.8% of 1.3415-1.2755 at 1.3160.A hint of current recovery was the two daily candles highlighted in my previous post and below. Buying on the breakout above this fib resistance is one thing to consider
Market sentiment: intraday – bullish, short-term – slightly bullish
Potential trade strategy: to buy on break of 1.3150, target at 1.3300, stop below 1.3080
Good morning. Off-topic question: does this site load slow for you? I’ll make some changes in the coming days to make it run faster i.e. hosting location, disabling most plugins etc.
Back to our charts.
Euro keeps getting closer to recent lows in the 1.27 area and so there’s just no reason to expect seeing a strong recovery yet. Selling into minor rallies is probably the best bet for now. The upward trendline highlighted last week (and below) has been breached and is now providing resistance
Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell on pullback to 1.2900, stop above 1.2960, target at 1.2800 and lower
I’ve taken another break from updating the blog due to limited time which caused a disconnect between me and the charts. Less time for trading means less time for writing, and I apologize to those readers who had a habit of checking this site on a regular basis. I’m going to make a few changes to see if a new schedule better fits with my day by day stuff (not trading related). For this reason, I might publish updates more often during the evening (European time).
This being said, let’s get straight to some charts.
Ongoing decline doesn’t seem to be over yet and there’s pressure on the 61.8% retracement value around 1.3060. That MA zone highlighted in the chart below was a good support during the uptrend and I believe that it’s still valid – but this time as a resistance layer. So either selling on a break below this 61.8% (the aggressive way) or on a pullback to 1.3100-50 area is the way to go.
Market sentiment: intraday – bearish, short-term – bearish
Potential trade strategy: to sell at 1.3100-50, stop above 1.3200, target at 1.2900.
Good morning. Dollar is under pressure across the board as Germany’s Constitutional Court is expected to give its approval today to the euro zone’s new bailout fund. Tomorrow’s Fed meeting is another important event that is currently putting weight on the dollar.
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:
Support at 76 is still intact
US Dollar Index Chart Daily 10-26-2011
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
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. Continue reading →
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:
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
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. Continue reading →
Quote of the day:“Doubt whom you will, but never yourself.” ~ Christine Bovee
Good morning. The euro changed course and declined after reaching a daily high at $1.3910 yesterday, but remains slightly bullish on short-term basis as recent recovery was quite strong. The German Zew and Bernanke’s speech later today are the most important events of the FX Calendar
As seen below – the pair is still above support formed around 1.3700 where it bounced last week, but it feels quite heavy so it seems a good idea to consider bearish opportunities while it holds below 1.3830/50 – either selling on a minor rally to 1.38 or on a break below 1.37
Euro vs US Dollar Chart 4hrs 10-18-2011
According to latest COT data, there’s not a big change in short contracts yet, despite current recovery to 1.39
Euro COT 10-18-2011
AUDJPY – the main risk barometer is following the EUR right now on more euro-zone worries. Next support zone is around 76.50 Continue reading →
Quote of the day:“I think if you do something and it turns out pretty good, then you should go do something else wonderful, not dwell on it for too long. Just figure out what’s next.” ~ Steve Jobs
Good morning. The market is quiet before the ECB rate decision and the press conference later today – other important event of the FX calendar being the Initial Jobless Claims. Let’s take a look at some charts to get a better feel and see if there are any new opportunities:
Daily studies are still bearish as we’re not far away from recent bottom and pressure is likely to remain high. I think that selling is still the best thing to do, but not yet, as bearish signals are not visible and the current recovery is not over.
Euro Vs US Dollar Chart Daily 10-6-2011
The selling setup I noted in my report yesterday is still in play and looks very good. It’s probably only a correction but there’s still a lot more room to the downside. Keep an eye on support zone around 1.0300 – if it breaks, then the recent top around parity level is the next target to consider
US Dollar Vs Canadian Dollar Chart Daily 10-6-2011
Same story here: another good looking reversal. It is currently testing support, as seen below, and a breakdown would probably accelerate the decline towards 1.36-1.37. Selling on more weakness is the best option, in my opinion Continue reading →