The intensity of the risings in Wall Street is reducing every day as the S&P 500 broke through the resistance at 1370 points but not as powerful as expected. However, the consumer confidence data helped the stocks to remain on the positive territory, as it reached a new high since last year.
Today's main events are the prelim GDP q/q and Bernanke Testifies.
EUR/USD
The ECB is about to transfer 500 billion Euros to the European banks in order to ease the credit problems and help the Eurozone economy. This action spreads optimism among the EUR investors and the currency is consolidating under 1.35 versus the USD. The pair created the "Bull-Flag" pattern on the daily chart and a break-up of the resistance might lift the price up to the 200 SMA around 1.37. However, this pattern usually comes with high levels of stochastic oscillator, which means that the pair is overbought and could current from the current level. Therefore, the risk of a false-break is higher, unless the EUR corrects down before the break-up occurs. Obviously, there is a possibility that the resistance is going to be to strong and the USD might strengthen against the EUR. In this case, we might see the price slide down to 1.33 or below.
EUR/CAD
The CAD still traded in a narrow channel between 0.992 and 1.005 against the USD and the tails of the recent candlesticks indicate that there are strong sellers around the upper boundary of the channel. Because the CAD is not making any significant changes, the EUR, which is in a bullish momentum these days, is getting higher against the CAD. In fact, the pair has reached the target we set to the break-up at 1.325 last week (1.34) and it is now facing the resistance at 1.35. The pair corrected down to 1.335 but made a green candlestick yesterday, and a break-up of yesterday's high might signal for a bullish reversal and a second attempt for breaking through 1.35.
GBP/USD
The GBP reached the 200 SMA at 1.59 versus the USD and got the expected resistance there. If it manages to overcome this obstacle, the buyers might push the pound above 1.60. However, the trend of the pair is mainly depended on the momentum of the USD, which is influenced by the stock markets. Therefore, if the USD resumes strengthening against the major currencies, the pound might fall down to 1.57 again.
Today's main events are the prelim GDP q/q and Bernanke Testifies.
EUR/USD
The ECB is about to transfer 500 billion Euros to the European banks in order to ease the credit problems and help the Eurozone economy. This action spreads optimism among the EUR investors and the currency is consolidating under 1.35 versus the USD. The pair created the "Bull-Flag" pattern on the daily chart and a break-up of the resistance might lift the price up to the 200 SMA around 1.37. However, this pattern usually comes with high levels of stochastic oscillator, which means that the pair is overbought and could current from the current level. Therefore, the risk of a false-break is higher, unless the EUR corrects down before the break-up occurs. Obviously, there is a possibility that the resistance is going to be to strong and the USD might strengthen against the EUR. In this case, we might see the price slide down to 1.33 or below.
EUR/CAD
The CAD still traded in a narrow channel between 0.992 and 1.005 against the USD and the tails of the recent candlesticks indicate that there are strong sellers around the upper boundary of the channel. Because the CAD is not making any significant changes, the EUR, which is in a bullish momentum these days, is getting higher against the CAD. In fact, the pair has reached the target we set to the break-up at 1.325 last week (1.34) and it is now facing the resistance at 1.35. The pair corrected down to 1.335 but made a green candlestick yesterday, and a break-up of yesterday's high might signal for a bullish reversal and a second attempt for breaking through 1.35.
GBP/USD
The GBP reached the 200 SMA at 1.59 versus the USD and got the expected resistance there. If it manages to overcome this obstacle, the buyers might push the pound above 1.60. However, the trend of the pair is mainly depended on the momentum of the USD, which is influenced by the stock markets. Therefore, if the USD resumes strengthening against the major currencies, the pound might fall down to 1.57 again.
Risk Disclosure
Trading and the execution of transactions in currencies, commodities,CFD indexes and other financial products with or without using high financial leverage, is speculative trading of high risk and may cause substantial gain or loss proportional to the size of the collateral, up to the total loss of the collateral sum in a very short period. The fluctuation of the prices and rates in the currency markets, commodities, CFD ,indexes and other financial derivatives are often volatile and there is no accurate forecasting as per the size of the change, its direction and the time frame in which it occurs.You must consider carefully and seriously if this type of financial activity fits your needs, your financial resources and personal circumstances. Since the risk of losing some of the invested funds or all the funds in a relative short period is high; it is recommended that you use for that purpose funds which you designated for speculative financial transactions of high risk.
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Interesting post.
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Sound good..
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