Archive for September, 2008
After the rejection of the bailout plan the markets are crazier than before. Stay aside until the dust settles.
Financial markets are waiting for the negotiations on shaping of the $700bln bailout plan. Rep Barney Frank, in BBG, says rescue bill will likely be passed by Monday, and in less than a week a bill will be signed. Until the effect of the plan is clear the markets will remain choppy and volatile. Stay [...]
More than 12% rise in gold prices help the EUR/USD to rebound and gain 3 big figures. Market liquidity is thin and everyone with money can choose the direction and magnitude of the move. Probably the upward correction will continue. In these market conditions the best strategy is to stay aside. If you decide to [...]
Yesterday FED left the rates unchanged but warned that it is watching the markets and will act if necessary. FED rescued AIG by authorising NY Fed to lend up to $85bln as secured loans. We’ll see in the next few days if this is enough to calm the markets. Order books are very thin and [...]
Yesterday the things were pretty messy in the forex market. Lehman filed for Chapter 11 protection, AIG is seeking money and Washington Mutual is the next financial institution in trouble. Dow closed 504.48 pts down, which caused sell off in EUR/JPY and put EUR under pressure. EUR/USD hit 1.4322 around the NYSE close but then [...]
A lot of US banking news combined with very thin liquidity (Japan, HK, China and S, Korea are off) resulted in a volatile Asin session. EUR/USD gapped up on the open and rallied to 1.4480. Lehman Brothers announced it is filing for Chapter 11 Bankruptcy. Lehman says none of broker – dealer subsidiaries or other [...]
Probably the long awaited correction in EUR/USD has begun. On the daily candlesticks charts were formed a hammer reversal pattern, followed by e white candle with large body confirming the beginning of the retracement. The question is if this is just a correction of the new downtrend or a continuation of the previous uptrend? No [...]
EUR/USD posted new low yesterday but the a short squeeze in EUR/JPY caused a rally in the major pair above 1.4000. The forex market is still wondering if the USD strenght should continue or a correction should follow. Economic data from US are not positive but the rest of the world may be in much [...]
New low for the downmove in EUR/USD. The market is extremely oversold but the bears rule and no bottom is visible. The nearest support is @ 1.3850 and it is previous high on weekly charts. A correction is due but if oil breaks below $100 it may be almost impossible. Trade carefully and always place [...]
EUR/USD still looks heavy. The pair is weighed by the lower oil prices and the EUR/JPY sales. The market is extremely oversold and due for correction but it seems impossible at this stage. Probably the big guys will target the option barriers and stops around 1.40 and then will allow any retracement to develop. OPEC [...]