Archive for April, 2008
EUR/USD is pausing for a breath after the fall from 1.60 and before the FOMC meeting. The market is expecting 25 bp rate cut and probably FED will deliver it. If teh statement of the meeting sounds hawkish or even less dovish another leg down for EUR/USD is expected. First major support is 1.5510, then [...]
The break above 1.6000 was not sustained and a sell off followed. It was accelerated by the worse than expected Ifo index. EUR/USD retraced ti 23.6% level but broke and closed below the lower boundary of the ascending triangle. Further correction towards 1.5500 is possible. The support @ 1.5340 is key and will determine if [...]
Finally EUR/USD hit 1.6000. Some options barriers were activated for now and we still are extending the ascending triangle. ECB probably will not intervene ’cause in the last few days they were speaking about the inflation and all that crap. Obviously they are stupid enough and won’t understand that their high interest rates depreciate the [...]
EUR/USD broke both boundaries of the ascending triangle and closed within the pattern. This means that the market is very volatile and neither bulls nor the bears are winning. Some interesting developments could be noticed these days. Interest rate markets are starting to discount the end of the FED’s rate cuts cycle. This could be [...]
EUR/USD broke to the upside the ascending triangle pattern. MACD shows divergence with the price action but obviously the buyers from Russia and Mid East countries don’t care abot the technical analysis. Some banks and hedge funds are complaining about the excessive volatility as they complained about the low volatility two years ago. The forex [...]
After the G7 meeting the forex market opened with gap. EUR/USD tested the lower boundary of the ascending triangle but couldn’t break below so the pattern is still intact. Euro was pushed up by strong Mid Eastern names buying. Probably the Asians and Russians will test the patience of the central bankers and this week [...]
“Since our last meeting, there have been at times sharp fluctuations in major currencies, and we are concerned about their possible implications for economic and financial stability,” the G-7’s finance ministers and central bankers said in a statement after their meeting in Washington. Next week we’ll see if this is enough for the forex market [...]
BoE is not as bureaucratic as ECB and the cable looks weak both against the dollar and EUR. GBP/USD is in consolidation and the direction of the next move will be determined by a break of the support @ 1.9720 or resistance @ 2.0050. Thursday the BoE decision could be the trigger for the next [...]
EUR/USD is forming ascending triangle, which is continuation pattern and favors upside break with measured target 1.6460. The momentum oscillator is warning that the uptrend is exhausted and needs deeper correction. If the pair breaks below 1.5340 a double top formation will be completed with target 1.4780.
At this point probably the technical factors are not [...]
The markets are crazy, even funny these days. After the surprisingly worse NFP the market reaction was more volatility. If you read the comments on Bloomberg’s web site you’ll find out that the oil and copper prices rose because the weaker dollar prompted investors to buy commodities, but platinum and palladium fell on concerns slower [...]