Tuesday, June 30, 2009
Dollar Continued To Lose Ground
Economic data and a lackluster
session in the stock market sent the Dollar index to lower ground. Even
though the index has broken out of its wedge formation, it is still
holding its current levels around 80 points. Consequentially, the
individual pairs are still failing to present any major movement.
The
AUD/USD and GBP/USD continue to remain around recent resistance levels,
while the EUR/USD, is slowly drifting higher. One must note that the
markets are now preparing for an interest rate decision from the ECB
therefore the intraday sessions could present high volatility.
Economic
data also had a mild impact on the session as mortgage approvals in the
U.K showed a better than expected result. Across the globe, Australia
showed that their private sector credit had dropped presenting a
negative 0.1%, while their HIA New Home Sales figure dropped by an
astonishing -5.7%.
read the full article at dodjit.com
Thursday, June 25, 2009
The Dollar played dead
Despite a positive session in the U.S
the Dollar continued to trade in range, failing to present any major
movement. After presenting a positive session yesterday, today’s price
movement seems to be erasing all of those gains. The Dollar index
continues to remain in range trading around 80 points.
Mixed
data has been having an enormous affect on the currency market
recently, as traders remain confused regarding future price pattern.
For example what seemed like a Dollar continuation a few days ago,
quickly faded away, as Wednesday’s bond auction had an effect on the
Dollar, sending it lower. Yesterday’s U.S session is also affecting
today’s Dollar intraday session, sending it lower. While day traders
can work on the current ranges presented in the market, swing traders
should be patient and wait for a break of the current range. Individual
pairs, for example the GBP/USD and the EUR/USD, are all currently
trading in range.
Read the full article at dodjit.com
the Dollar continued to trade in range, failing to present any major
movement. After presenting a positive session yesterday, today’s price
movement seems to be erasing all of those gains. The Dollar index
continues to remain in range trading around 80 points.
Mixed
data has been having an enormous affect on the currency market
recently, as traders remain confused regarding future price pattern.
For example what seemed like a Dollar continuation a few days ago,
quickly faded away, as Wednesday’s bond auction had an effect on the
Dollar, sending it lower. Yesterday’s U.S session is also affecting
today’s Dollar intraday session, sending it lower. While day traders
can work on the current ranges presented in the market, swing traders
should be patient and wait for a break of the current range. Individual
pairs, for example the GBP/USD and the EUR/USD, are all currently
trading in range.
Read the full article at dodjit.com
AUD/JPY Potential Setup
The AUD/JPY has been trading within an uptrend for over 5 months, presenting classic swing pattern. After retracing due to overall Dollar strength, this pair has now retraced to its Fibonacci level of 38.2%, a level which coincides with its lower trend line. Even though a potential bullish pattern is setting up, the trend is still trading within its secondary downtrend. A break of the red secondary trend line could signal a potential entry point.
Please note this scenario depends on today’s data and on the overall Dollar’s outlook
A change in bias will occur should the major trend line break
Read the full daily article at dodjit.com
Please note this scenario depends on today’s data and on the overall Dollar’s outlook
A change in bias will occur should the major trend line break
Read the full daily article at dodjit.com
Uncertainty on the FX market
Over on
the Forex market, the Dollar index continued to trade mixed, around
recent levels. Even though the Dollar weakened during yesterday’s
session, showing signs breakout, the index has retraced since then,
something that could lead to further consolidation. By taking a glance
at the following 4 hour chart one can see that the breakout’s momentum
from the triangle, has now disappeared as the index has retraced to
test its trend line. Please note a lack of movement on stocks, could
send the Dollar index into further range.
the Forex market, the Dollar index continued to trade mixed, around
recent levels. Even though the Dollar weakened during yesterday’s
session, showing signs breakout, the index has retraced since then,
something that could lead to further consolidation. By taking a glance
at the following 4 hour chart one can see that the breakout’s momentum
from the triangle, has now disappeared as the index has retraced to
test its trend line. Please note a lack of movement on stocks, could
send the Dollar index into further range.
On
individual pairs, a volatile session ended up to be a lackluster one as
most of the pairs ended up around previous levels. The GBP/USD
presented a doji candlestick showing that investors are still waiting
for a major event to decide where the currency pairs are headed. For
further chart analyses, feel free to view dodjit’s chart page.
Wednesday, June 24, 2009
(Pound / Dollar)- Daily Chart
EUR/USD makes a sharp turnaround
On the Forex market the Dollar
index continued to linger around recent levels, as currency investors
are preparing for today’s important rate decision. On individual pairs,
the EUR/USD presented a dramatic move, breaking key level of 1.4, after
finding support on its 38.2% Fibonacci level. From a broader
perspective, the chart now seems to be forming a cup and handle
pattern, currently trading in the handle stage. A break of upper
resistance will give a clearer picture and verify the completion of the
pattern.
On other pairs, the GBP/USD continued to trade around recent highs
while the USD/CAD closed the session just off trend line resistance.
Another market mover was the USD/CHF, dropping to 1.0657, the major
move came after the chart had formed a wedge pattern. The pair sold off
during the session as sellers pushed the pair down to support of
1.0691. Decreasing bond yields also had an impact on the pair, as the
movement in the bond market was negative for the Dollar.
Read the rest of the article at dodjit.com
index continued to linger around recent levels, as currency investors
are preparing for today’s important rate decision. On individual pairs,
the EUR/USD presented a dramatic move, breaking key level of 1.4, after
finding support on its 38.2% Fibonacci level. From a broader
perspective, the chart now seems to be forming a cup and handle
pattern, currently trading in the handle stage. A break of upper
resistance will give a clearer picture and verify the completion of the
pattern.
On other pairs, the GBP/USD continued to trade around recent highs
while the USD/CAD closed the session just off trend line resistance.
Another market mover was the USD/CHF, dropping to 1.0657, the major
move came after the chart had formed a wedge pattern. The pair sold off
during the session as sellers pushed the pair down to support of
1.0691. Decreasing bond yields also had an impact on the pair, as the
movement in the bond market was negative for the Dollar.
Read the rest of the article at dodjit.com
Tuesday, June 23, 2009
Dollar didn’t budge
Even though equities presented a dramatic move during yesterday’s session, the Dollar
hardly moved, as the index continued to trade around its recent levels.
This type of price movement has now raised many questions regarding
further weakness in the equity market. From a fundamental point of
view, the Dollar has shown a strong correlation with the equity market,
increasing on market skepticism and decreasing, as risk appetite has
returned into the markets.
Could the Dollar index be telling us that the current drop in equities is only going to be a mild correction?
On
individual pairs the EUR/USD continued to trade above support of
1.3756, while the GBP/USD remained stuck between minor range of
1.6220-1.6621. The major mover of the day was the USD/CAD climbing
dramatically, as crude oil lost its ground. Even though the pair
smashed through its 61.8% Fibonacci level, presenting an enormous
rally, CAD traders should still be cautious as the price is now
approaching trend line resistance. In addition the recent trend did not
receive backing from broader Dollar strength.
Gold
continued to drift lower on expectation that inflationary problems
wouldn’t be an issue, while the bond market climbed higher, as money
exited stocks.
Market Data to Watch Out For
Unlike yesterday’s schedule eyes will focus on the economiccalendar today as a wave of data is scheduled to be released. Starting
with European data, Germany and France are scheduled to release their
manufacturing and services PMI, both expected to show an increase in
activity. Towards afternoon hours the U.S will take center stage
releasing its housing data. Existing home sales should have an impact
on today’s session as the market have priced in an increase of 4.81m
compared to a previous 4.68m
To view the full economic calendar click here.
Sunday, June 21, 2009
The Dollar Stumbles, Where to Now?
From a technical point of view most
of the traded assets are now range bounded, waiting for a major event
to drive them forward, into trend. The Dollar index,
calculated against a basket of currencies closed the week stuck between
trend line support and resistance of 81.50 points. The non directional
week had an enormous impact on all the majors and the crosses, as
numerous pairs have now entered ‘sleep mode’, forming potential break-out setups.
One must remember that the Dollar is still showing a strong correlation
with the U.S stock market, as it continues to act as a safe haven. A
recent pause in stocks has been characterized by a stronger Dollar,
especially as investors are dubious regarding the continuation of the
equity market. Should equities break their range, one could expect a
weaker dollar and stronger counterparts.
This Upcoming Week
Even though the economic
calendar is a lot less packed compared to last week’s schedule, data
will continue to take its toll on the intraday sessions, causing
increasing volatility. The U.S will stand out this week as they are
expected to release an interest rate decision, their annualized GDP
result and consumption results, among others. While many are focusing
on the rate decision, one must remember that with a low rate of 0.25%
the Fed doesn’t have many alternatives that to help the economy via
further quantitative easing. Even though bonds are starting to price in
future rate hikes, the economic situation should prevent the Fed from
taking any irrational moves. Due to that fact one should look to other
results, for example housing data could be a potential candidate to
stimulate the break out. With a gloomy housing sector, could a
combination of Existing Home Sales and New Home sales spark the
break-out this time round?
Potential Break-Outs
(Please
note that even though we are pro bullish patterns the direction will
depend on the Dollar’s reaction to the U.S equity market)
USD/CHF
EUR/CHF
GBP/JPY
CAD/JPY
Check out our ‘charts analysis’ page, for technical charts.
Thursday, June 18, 2009
Britain Surprises
On the Forex Market the Dollar index continued to linger around recent levels, as it closed at 80.23 points towards the end of the U.S session. BRIC
countries continued to have an effect on the Greenback mentioning that
a new reserve currency is now required, due to the Dollar’s status.
While news headlines have flooded the market over the last couple of
days with comments from Russian officials, those headlines are starting
to fade, especially as the topic will require a long process, something
that might not even be realized in the end.
From a technical point of view yesterday’s analysis on the Dollar index is still intact, as the Dollar continues to trade above trend line support and below major resistance.
Britain
surprised analysts during yesterday’s trading session with a better
than expected unemployment result of 7.2%. Even though the rate was the
highest since July 1997 the result beat analyst’s expectations of 7.3%,
providing the Pound with strength during the session. According to
statistics the younger age group is feeling most of the pressure in
England due to the economic situation, finding it hard get employed.
The
EUR/USD also presented a volatile session increasing against the USD,
while the Dollar/ Yen pair finished the session flat. Movement on all
the pairs will occur once the Dollar receives a clearer direction.
Read the full article at dodjit.com
countries continued to have an effect on the Greenback mentioning that
a new reserve currency is now required, due to the Dollar’s status.
While news headlines have flooded the market over the last couple of
days with comments from Russian officials, those headlines are starting
to fade, especially as the topic will require a long process, something
that might not even be realized in the end.
From a technical point of view yesterday’s analysis on the Dollar index is still intact, as the Dollar continues to trade above trend line support and below major resistance.
Britain
surprised analysts during yesterday’s trading session with a better
than expected unemployment result of 7.2%. Even though the rate was the
highest since July 1997 the result beat analyst’s expectations of 7.3%,
providing the Pound with strength during the session. According to
statistics the younger age group is feeling most of the pressure in
England due to the economic situation, finding it hard get employed.
The
EUR/USD also presented a volatile session increasing against the USD,
while the Dollar/ Yen pair finished the session flat. Movement on all
the pairs will occur once the Dollar receives a clearer direction.
Read the full article at dodjit.com
Wednesday, June 17, 2009
Dollar Doom?
Over the last couple of days the Dollar has been tip toeing on a thin line as BRIC
countries have been questioning its future as a reserve currency. While
certain members are extremely disappointed with the current value of
the Dollar, partly caused due the U.S’s enormous deficit, others are
still defending the greenback, mentioning that its status will not be
affected. One must note that many metals are still traded in U.S
Dollars; therefore oil exporting countries are being affected by the
Dollar’s devaluation. While there have been a lot of discussions
regarding the U.S Dollar, actions are yet to be take. In most cases, diversifying the world’s currency is easier said than done.
Consequentially the Dollar index has been treading water over the last
couple of days, after hitting resistance of 81.30 points. To date the
price pattern has formed a bullish triangle in a down trend. While a
breakout is often seen to the upside in this type of pattern,
additional pressure could be felt on the Greenback, leading it to its
recent lows.
On individual pairs the EUR/USD managed to find support early morning
regaining Monday’s losses, while the GBP/USD continues to remain around
recent highs. The U.K is expected to release its ILO unemployment rate
shortly, showing that the economy’s job loss rate has increased to a
whopping 7.3%. In addition Initial claims will show an increase and is
expected to come out at 60.0k. For further charts see dodjits.com chart
analysis page.
Read the full article at dodjit.com
countries have been questioning its future as a reserve currency. While
certain members are extremely disappointed with the current value of
the Dollar, partly caused due the U.S’s enormous deficit, others are
still defending the greenback, mentioning that its status will not be
affected. One must note that many metals are still traded in U.S
Dollars; therefore oil exporting countries are being affected by the
Dollar’s devaluation. While there have been a lot of discussions
regarding the U.S Dollar, actions are yet to be take. In most cases, diversifying the world’s currency is easier said than done.
Consequentially the Dollar index has been treading water over the last
couple of days, after hitting resistance of 81.30 points. To date the
price pattern has formed a bullish triangle in a down trend. While a
breakout is often seen to the upside in this type of pattern,
additional pressure could be felt on the Greenback, leading it to its
recent lows.
On individual pairs the EUR/USD managed to find support early morning
regaining Monday’s losses, while the GBP/USD continues to remain around
recent highs. The U.K is expected to release its ILO unemployment rate
shortly, showing that the economy’s job loss rate has increased to a
whopping 7.3%. In addition Initial claims will show an increase and is
expected to come out at 60.0k. For further charts see dodjits.com chart
analysis page.
Read the full article at dodjit.com
Wednesday, June 10, 2009
Dollar’s strength was limited
On the Forex market the Dollar
index dropped after forming a doji like candlestick on Monday. The
index dropped below 80 points, climbing back into its recent trend. The
move was widely expected; especially as the risk for appetite has flip
sided over the last couple of months, sending carry trades and other
high yielders flying.
On individual pairs, the Euro/Dollar and the Pound/Dollar
both presented a reversal, climbing higher, while the AUD/USD climbed
higher after forming support on Fibonacci level 38.2%. Over in England,
political news was quickly brushed aside Wednesday morning as further
financial problems surfaced. According to Sky news, Lloyds banking
group will lay-off an additional 1500 employees that are located in
approximately 160 branches across England. Despite negative headline,
the GBP/USD continued to gain strength early morning backed by fading
political problems and improving housing data. As we recall Gordon
Brown managed to survive the labor party meeting the other day and
maintain his status. Even though the political saga is far from over,
investors are now looking past the problems, taking advantage of the
undervalued pound.
index dropped after forming a doji like candlestick on Monday. The
index dropped below 80 points, climbing back into its recent trend. The
move was widely expected; especially as the risk for appetite has flip
sided over the last couple of months, sending carry trades and other
high yielders flying.
On individual pairs, the Euro/Dollar and the Pound/Dollar
both presented a reversal, climbing higher, while the AUD/USD climbed
higher after forming support on Fibonacci level 38.2%. Over in England,
political news was quickly brushed aside Wednesday morning as further
financial problems surfaced. According to Sky news, Lloyds banking
group will lay-off an additional 1500 employees that are located in
approximately 160 branches across England. Despite negative headline,
the GBP/USD continued to gain strength early morning backed by fading
political problems and improving housing data. As we recall Gordon
Brown managed to survive the labor party meeting the other day and
maintain his status. Even though the political saga is far from over,
investors are now looking past the problems, taking advantage of the
undervalued pound.
GBP/JPY possible setup
Even
though indicators are pointing to overbought conditions the price
pattern is now trading around resistance. Should the Pound receive
further strength and break the $160.80 level, bullish positions could
be an option. One must note that a break will depend on the Pound’s
overall momentum.
Read the full article at dodjit.com
though indicators are pointing to overbought conditions the price
pattern is now trading around resistance. Should the Pound receive
further strength and break the $160.80 level, bullish positions could
be an option. One must note that a break will depend on the Pound’s
overall momentum.
Read the full article at dodjit.com
Tuesday, June 9, 2009
Dollar index formed a doji
Despite the relative strength on the Dollar,
the index presented a sharp turnaround during yesterday’s session as
counterparts gained intraday strength. The index failed to break
resistance of 81.12 closing the session just off its lows of the day.
Today’s session wasn’t much different, as the index formed a double top
during morning hours and yet again dropped, giving up further strength.
Daily Chart
*charts are courtesy of netdania.com
After a long and tiring meeting, Gordon Brown showed that he had
support of his fellow party members this morning, stressing that he
intends to make major changes regarding his political ways. Even though
the political problems are still far from being over in England,
investors took the news as positive thing driving the GBP/USD higher.
After four days of selling pressure on the Pound, investors took advantage of the pullback, driving the price higher.
The EUR/USD also received positive momentum during early morning hours,
after two days of heavy selling pressure. Germany’s trade balance
showed a slight improvement compared to the month before, but came out
just off analyst’s expectation at 9.4 billion. Exports have received a
major blow over the last couple of months as the global slowdown has
had an enormous affect on demand. Even though figures are showing that
exports are off their lowest levels, numbers are still very low
compared to the year before hand.
Read the full article at dodjit.com
the index presented a sharp turnaround during yesterday’s session as
counterparts gained intraday strength. The index failed to break
resistance of 81.12 closing the session just off its lows of the day.
Today’s session wasn’t much different, as the index formed a double top
during morning hours and yet again dropped, giving up further strength.
Daily Chart
*charts are courtesy of netdania.com
After a long and tiring meeting, Gordon Brown showed that he had
support of his fellow party members this morning, stressing that he
intends to make major changes regarding his political ways. Even though
the political problems are still far from being over in England,
investors took the news as positive thing driving the GBP/USD higher.
After four days of selling pressure on the Pound, investors took advantage of the pullback, driving the price higher.
The EUR/USD also received positive momentum during early morning hours,
after two days of heavy selling pressure. Germany’s trade balance
showed a slight improvement compared to the month before, but came out
just off analyst’s expectation at 9.4 billion. Exports have received a
major blow over the last couple of months as the global slowdown has
had an enormous affect on demand. Even though figures are showing that
exports are off their lowest levels, numbers are still very low
compared to the year before hand.
Read the full article at dodjit.com
Monday, June 8, 2009
Profit taking after Friday’s Dollar rally
On the Forex market the Dollar
opened mixed Monday morning climbing against the Euro, but decreasing
against the Yen. As explained on the weekly report, the Dollar
presented an enormous turnaround during Friday’s trading day, propelled
by a surge on yields on the higher end of the curve. (Further
information is explained in the weekly report).
The pound continued to take a hit Monday morning as political problems further weighed on the currency.
Even though the current correction isn’t yet signaling a change in
trend, the massive four day drop has now concerned investors,
especially as the U.K’s economy is still far from out of the woods,
politically and economically. The charts also showed a problematic
situation as the GBP/USD presented signs of a reversal candle on the
weekly chart. From a technical point of view the chart presented an
inverted hammer type candle stick, one that often points to further
weakness.
The
Japanese economy showed a slight increase early morning as the economy
released that bankruptcies had declined, allowing sentiment to rise.
According to Bloomberg news, the economy is now showing a dramatic
improvement something that is leading to improving confidence among
Japanese merchants. The Dollar backed down against the Yen Monday morning, but managed to hold most of its relative strength.
Read the full article at dodjit.com
opened mixed Monday morning climbing against the Euro, but decreasing
against the Yen. As explained on the weekly report, the Dollar
presented an enormous turnaround during Friday’s trading day, propelled
by a surge on yields on the higher end of the curve. (Further
information is explained in the weekly report).
The pound continued to take a hit Monday morning as political problems further weighed on the currency.
Even though the current correction isn’t yet signaling a change in
trend, the massive four day drop has now concerned investors,
especially as the U.K’s economy is still far from out of the woods,
politically and economically. The charts also showed a problematic
situation as the GBP/USD presented signs of a reversal candle on the
weekly chart. From a technical point of view the chart presented an
inverted hammer type candle stick, one that often points to further
weakness.
The
Japanese economy showed a slight increase early morning as the economy
released that bankruptcies had declined, allowing sentiment to rise.
According to Bloomberg news, the economy is now showing a dramatic
improvement something that is leading to improving confidence among
Japanese merchants. The Dollar backed down against the Yen Monday morning, but managed to hold most of its relative strength.
Read the full article at dodjit.com
Sunday, June 7, 2009
Where to Now?
From a fundamental and historical point of view, the markets
should continue higher, especially due to Friday’s impressive NFP
figure. Friday’s immediate reaction from stock traders was to drive the
indices to higher ground. The result diverged by such an extent, from
analyst expectations, that throughout the session stocks lost their
steam as many questioned the surprisingly good report. On the Forex
market the Dollar index saw a dramatic change, as the
Dollar jumped against counterparts, the Dollar/Yen pair soared during
Friday’s session climbing by over 200 pips. While it might seem strange
that the Dollar increased against counterparts, especially as it has
acted as a safe-haven over the last couple of months, recent movement
came down to a combination of profit taking and higher U.S bond yields.
As mentioned above
Friday’s numbers gave the markets a green light regarding the strength
of the U.S economy. On one hand, currencies should continue on their
normal path, which means that the GBP/USD, EUR/USD and USD/JPY could
see higher ground in the long term. On the other hand, the Dollar could
gain strength in the short term as investors are now rushing into the
green back due to the following;
- Traders
are now pricing in a high chance of a rate hike, towards the end of the
year- this is attracting foreign money into the Dollar. - Profit taking after Dollar counterparts presented an impressive rally.
Technical Pictures
The following chart present possible pullback areas considering the Dollar continues to strengthen.
EUR/USD
GBP/USD
AUD/USD
Check out our ‘charts analysis’ page, for technical charts.
Read the full article at dodjit.com
powerd by etoro.com
Friday, June 5, 2009
Will the NFP really have an impact?
Every first Friday of the month,
investors prepare for what is classed as the major mover of the month.
Over the last couple of months the NFP has received center of
attention, as the numbers have been showing less employment and higher
unemployment. Today during the U.S’s pre-market hours the Bureau of
Labor Statistics is scheduled to release its results, showing that the
unemployment rate has jumped to 9.2%, while the NFP has dropped by
-520k. Even though the two results are expected to have a large impact
on the intraday session, many are now questioning whether they will
have an impact on the overall trend. One must note the following:
- Certain sectors are starting to pick up, showing improving data
- According
to expectation, the unemployment rate is expected to reach a double
digit number. Is that already baked into the market’s price? - U.S equities are still climbing higher.
For those of you who are day traders,
today’s session could present a dramatic move. Those who are more swing
traders should observe the price pattern carefully, watching for a
reversal on a daily chart, as the volatility could turn out to be only
a minor intraday thing.
Read the full article at dodjit.com
Thursday, June 4, 2009
Dollar Bounces Back
On the Forex Market, the Dollar
reversed sharply, coming off support. As stated in previous reports, a
reversal was bound to happen, even if it ends up only being a short
one. One must note that 80 points on the index could act as resistance,
especially as the level is also classed as a psychological level.
On individual pairs the Dollar presented
a sharp turnaround during yesterday’s session, increasing against
counterparts. While certain pairs showed more of a move, the Dollar was
definitely a preferred currency during yesterday’s session. The EUR/USD
dropped due to the overall market strength and due to economic data.
GDP results showed that the Euro-zone had further contracted during the
first quarter, dropping by a whopping 2.5%. Yearly figures had more of
an impact on the market diverging from expectations, coming out at 4.6%.
U.K's
data surprised traders yesterday as their PMI reading jumped to 51.7,
the first increase in over a year. While it is far too early to
determine a change in the U.K’s economic status, the good news helped
prevent a major collapse on the GBP/USD. To date the Pound is trading
above its tertiary trend line, one that could act as support on the way
down.
Check out our ‘charts analysis’ page, for additional technical charts (only on dodjit.com).
Read the full article at dodjit.com
reversed sharply, coming off support. As stated in previous reports, a
reversal was bound to happen, even if it ends up only being a short
one. One must note that 80 points on the index could act as resistance,
especially as the level is also classed as a psychological level.
On individual pairs the Dollar presented
a sharp turnaround during yesterday’s session, increasing against
counterparts. While certain pairs showed more of a move, the Dollar was
definitely a preferred currency during yesterday’s session. The EUR/USD
dropped due to the overall market strength and due to economic data.
GDP results showed that the Euro-zone had further contracted during the
first quarter, dropping by a whopping 2.5%. Yearly figures had more of
an impact on the market diverging from expectations, coming out at 4.6%.
U.K's
data surprised traders yesterday as their PMI reading jumped to 51.7,
the first increase in over a year. While it is far too early to
determine a change in the U.K’s economic status, the good news helped
prevent a major collapse on the GBP/USD. To date the Pound is trading
above its tertiary trend line, one that could act as support on the way
down.
Check out our ‘charts analysis’ page, for additional technical charts (only on dodjit.com).
Read the full article at dodjit.com
Tuesday, June 2, 2009
EUR/JPY soared above 137, will it continue?
The Euro drives forward
Risk appetite continued to drive the Euro forward during yesterday’s session as the Dollar weakened across the board. The Dollar indexdropped yet again during the session but quickly retraced towards the
second half of the day. Even though Dollar weakness is expected to
continue one should observe the price action, yesterday’s session
formed a hammer like candle, something that could present a short term
reversal. To date the Dollar index is trading around recent lows, a
level that could act as support, should equities fail to follow through
from yesterday’s session.
On other Forex pairs,
recent momentum continued with the AUD, GBP and NZD all climbing
higher. On yesterday's video briefing we mentioned a potential setup
on the EUR/JPY. It is important to note that even though the trade did
follow through climbing by over 200 pips, the pair has yet to break it
prior high of ¥137.40. While this pair is now presenting early signs of
a break of its current bullish triangle pattern, the equity market
should continue to be observed, as this pair, similar to others, will
continue to take its cue from stocks.
Crude oil continued higher, closing the session above $67 per barrel on overall market momentum and a decreasing Dollar.
Read the full article at dodjit.com
Monday, June 1, 2009
Dollar presented another leg down.
On the Forex market the Dollar
index dropped, coming close to December’s lows. A combination of a
higher equity and commodity market had a massive impact on the green
back during Friday’s session, esspecially as news headlines published
that crude oil and Gold had both jumped.
jumped by 2.04% during Friday’s session, while Crude Oil finished the
month above $65 per barrel. Even though the extreme rise is startling
some equity traders, especially as the current commodity moves are not
normally characterized during the start of an economic cycle, some are
relieved that the recent increase in prices isn’t yet having much of an
effect on inflation. Recent data is still showing that inflationary
numbers are decreasing in certain regions. According to last week’s
data the Euro-zone showed that their numbers had dropped during the
month of April.
On individual pairs, the Dollar continued to lose strength during early morning hours against counterparts. While the Forex market hasn’t presented any major moves volatility should start to pick up, especially as a vast amount of economic data is scheduled to be released.
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