Archive for December, 2007
The Fed said yesterday it will make up to $24 billion available to the ECB and SNB to increase the supply of dollars in Europe. It plans four auctions to add as much as $40 billion of cash in the U.S. This announcement was intended to calm down the markets, but actually it caused [...]
FOMC “surprised” the markets, but couldn’t move EUR/USD above the broken uptrend line, or the below the upper boundary of the flag formation. The forex market is still looking for direction. Key level for the upside is 1.4770 and for the downside – 1.4520. Until one of these levels are taken out, play the range [...]
The market participants were “dissapointed” by yesterday’s FED move. FOMC cut by only 25 bp both rates. It’s strange why the market expectations changed during the last few days even after the stronger NFP report last Friday. I think the answer is simple. If the FED meets always the market expectations after the decision is [...]
Some big Russian companies and banks made a lot of money from the high commodities prices. Now they multiply these profits on the forex market. Almost every morning around 7:00 GMT they move the major currency pairs by at least 20 pips. They usually buy GBP/USD and EUR/USD. This excersise is possible beacuse of the [...]
EUR/USD is trying to break back above its uptrend line. The momentum oscilator is climbing but remains below the signal line. The market should close above yesterday’s high @ 1.4736 to regain strenght for test of the all time high 1.4967. The direction of the pair will be determined by the FOMC decision later today. [...]
GBP/USD is back above 2.0240 and 2.0350. Breakdonws of the support levels were not sustained and the currency pair is heading again towards 2.0515 and 2.0585. GBP/USD is contained within the boundaries of a bullish assymetrical triangle formation. MACD and Momentum indicators are in negative territory which in combaination of the BoE rate cuts signals [...]
EUR/USD is still on crossroads. The pair consolidates between the the broken uptrend line (currently @ 1.4700) and the lower boundary of a flag formation (currently @ 1.4450). Very strong support is between 1.4490 and 1.4520 (200 DMA, a few previous daily highs and lows, lower Bollinger band). If this support holds and EUR/USD climbs [...]
Today is teh NFP day. The US Employment report is probably the most important of all the market moving events. Today’s NFP will probably afect the markets more than usually because it precedes very important FOMC meeting. If today we see number greater that 100K FED may skip this rate cut or may cut [...]
After the ECB press conference the EUR was supported by Mr. Trichet inflation concerns. EUR/USD rallied and now it is testing the broken uptrend line which is resistance currently. If this holds we may expect another sell off and test of the lower boundary of a bull flag formation which coincides with the swing [...]
BoE cut the rates today but GBP/USD brokern the strong support level @ 2.0240 before the decision. If today the market closes below the broken support we can see a tets of the uptrend line @ 2.0070/80.