Archive for February, 2008
EUR/USD breaks above 1.5000
Wednesday, February 27th, 2008After 3 failed attempts, finally EUR/USD is above 1.5000. The fundamental explanations were the stronger than expected Ifo and Fed’s Vice Chairman Kohn concerns about downside risks to growth. The real reasons probably KO barriers above 1.5000 and the strong euro uptrend. All the bad news for the US economy should be priced in by the forex market, but the Big boys need directional movement to make money and have all the knowledge and resources to generate it. Let’s see if ECB has something to say?
GBP/USD in downtrend
Wednesday, February 20th, 2008EUR/USD
Tuesday, February 19th, 2008USD/JPY
Sunday, February 10th, 2008EUR/USD on crossroads
Sunday, February 10th, 2008EUR/USD is consolidating within a ascending triangle chart formation. This is a continuation pattern but this time it could be broken to the downside. If the currency pair breaks below 1.4395 the measured target is 1.3750. The bulls will not throw the towel without fight and another attempt for restoring of the trend is possible with first resistance @ 1.4590 and 1.4660. If the support @ 1.4395 is broken the next downside targets are 1.4360, 1.4310 and 1.4120.
EUR/USD
Tuesday, February 5th, 2008Today the US dollar strenghtened across the board. The reason is still unclear, but the sell level of the Evening star formation was triggered. Next targets are 1.4590 and 1.4510. EUR/USD is in wide consolidation between 1.4300 and 1.4970. One of these levels should be broken before the market finds new direction.
EUR/USD
Saturday, February 2nd, 2008After the surprisingly negative NFP report the EUR/USD was unable to overtake the life time high and a sell off followed helped by the positive surprise ind the ISM index. The volatile price action formed a bearish reversal Evening star pattern. If in the next few days the market breaks and closes below 1.4755 the short term picture will be positive for the dollar. It will be helped by the declining technical studies.