As I was expecting Friday, the EURUSD retested 1.3900, but it didn't stop there. It went all the way to 1.3935. It pulled back and found a local support at 1.3895. A break under this level could mean another fall back to 1.3845 or even lower to 1.3815/00. On the other hand another rally above 1.3915 could mean that investors are targeting 1.40. … [Read more...]
EUR/USD Price Action For March 14
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The Euro dropped suddenly yesterday, mainly because the risk aversion triggered by the problems in Ukraine. A second reason would be the fact that Draghi suggested the euro is getting too strong and will hurt the economic recovery of the Euro Area. These combined with some good economic indicators from the US triggered a big drop for the EURUSD. My expectations are of a throwback to 1.3900 before hitting new lows around 1.3800, where it will also find the main trend's line. … [Read more...]
EUR/USD Price Action For March 13
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The European single currency managed to break 1.3900 and is now hesitating under 1.3950. Here it found the mid way to 1.40 and also a rejection of an up channel. I will not be surprised to see a short comeback around 1.39 before continuing to the next important resistance level. The trend remains up, but it is possible for a Rising Wedge to be drawn. ) … [Read more...]
EURUSD Daily Forecast 21 January
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The Euro has moved up, testing the 1.3565 resistance. After it hit this high on Monday the EURUSD started to drop, consolidating itself between 1.3536 and 1.3558. A breakout above the resistance could trigger a rally to 1.3581, while a false breakout might send the price back to the local support or even lower to the next key support. … [Read more...]
EUR/USD – 14 January Morning Overview
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Yesterday I mentioned the EURUSD – Short term Rectangle Pattern analysis that near the 1.3630 support area it might be some good buying potential. It seems that the Euro bounced really nice from the 1.3636 low and touched today 1.3697. This morning rally was mainly caused by the declaration of ECB’s Nowotny who said that the outlook for Europe as a whole is much better than a year ago and that the monetary policy has contributed substantially to economic recovery. In the economic calendar … [Read more...]
EURUSD – Short Term Rectangle Pattern
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EURUSD bounced back from the top hit on Friday and retested a local low at 1.3654. The price has drawn a Rectangle pattern right after a clear up move. Statistics shows that from here the probability is higher for the price to break above the resistance of the pattern (1.3685) and continue the previous move. Any bounce, or false breakout, can be a good bullish signal. The upside targets for the continuation of the rally is at 1.3720 and 1.3750. Don’t stick with only one direction. A close … [Read more...]
EURUSD & GBPUSD Overview, Volume Is Picking Up After NYE
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We came back from the holidays full of energy for the year ahead, first of all we wish you a wonderful new 2014, full of success and good trades. Same like us, investors are also coming back from their holidays and this can be seen in the rising volume and the lower volatility from the Foreign exchange market. Around NYE, it seems that the low volume made possible for the FX instruments, especially EUR/USD to have some interesting moves: Let us start with the most traded currency pare, … [Read more...]
What Did Really Happen With The Markets?
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Even though yesterday not many expected a tapering of the Quantitative Easing program, it happened. Federal Reserved announced that they will cut the monetary easing program from 85B to 75B. Now everybody says that this decision was semi expected, to say it like that, by the market and that is why the reaction was like it was. We actually think that the real explanation of the market reaction is that even though the FED cut the QE with 10B dollars, but equilibrated the balance with the fact … [Read more...]
European Wrap Up, ECB is Aware of the Risks
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Today on the European session the economic data was pretty mixed. While France reported both manufacturing and services flash PMIs under estimates, Germany and Italy surprised with Manufacturing PMIs above expectations and Services PMIs under. The European Trade Balance is up to 14.5B euros, but was published lower than expectations. At the EU Parliament in Brussels, Draghi announced that the ECB is waiting for a slow pace recovery of the economy, reflected also by the low inflation. Still he … [Read more...]
EURUSD Short Term Technical Perspective
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The worldwide perspective about investing in risky assets seems to have changed. We observed that in December the European single currency has gained 2.0% in favor of the US dollar. It didn’t matter for the investors that good economic data were published for the United States and Fed could use them as an argument to taper the Quantitative Easing program. From this results that we are back to risk aversion and risk appetite. The United States is the world largest economy. If good economic … [Read more...]
On your Mark, Get Set, GO! Volatility Start
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The race of economic publications will start from the first day of the week. As we know, the beginning of the month will be dedicated to the monetary policy meetings and also to a very important series of macroeconomic releases. These will most likely raise the forex market volatility and that it is why it important to be very attentive. … [Read more...]
