The day started out pretty slow as traders simply sat on the sidelines ahead of the NFP report. The pair consolidated within a very tight range, breaking out only when the European trading session began. When the NFP report came out, the pair sold-off heavily, due to overall dollar strength. Would’ve been a good idea to buy at the PDL, as it held magnificently!
EUR/USD started out in consolidation mode due to the lack of economic catalyst. During the European session, however, the pair broke out to the upside slightly because of the extremely better-than-expected German Factory Orders report. It came in with a 2.2% increase, opposite the -0.4% consensus. During the U.S. session, the pair reversed its gains and then settled near its DO.
The EUR rallied on the charts yesterday on the combination of positive German data and risk appetite. Boo yah!
Yeah we know:), what’s yer prediction dude?
all bearish for now
Got it, any idea why Eur/jpy is noticing down also? Any predictions there? I would thought that Eur being down, would affect all Eur pairs so I shorted both but getting burned in Eur/jpy, still holding and averaging down, but I’m all red there, it’s been cloning like crazy, I shorted around 129.8 average.
Bearish head and shoulder on the hourly charts of EurUsd. 1.2950: the target was reached, but at this point we can find the 200-days moving average and the whole game will be played on Monday.
Yesterday Bernanke explained markets that the Fed will decide when it’s time to start the brake. Is the end of the QE fothcoming…?
Does that meant EUR-USD will be more stronger and EUR-USD will crashed downtrend?
For some reason, this did not upload last Friday. My apologies! Just a simple consolidation followed by a break on the positive initial jobless claims!
The market is liken to a fashion show. Every month, the fashion industry focuses on a particular colour, certain dress designs, hair styles and etc. Likewise for the markets, every so often, the market gets bored of old themes and goes looking for new themes. So what is the current forex fashion for the month? It is the FED hinting of tapering or reducing the bond purchases. This implies a bullish USD biasness. As we can see for the last week, all major pairs trending lower against the USD. EUR GBP AUD NZD CHF CAD JPY. You name it.
The fundamental direction of EURUSD is still to the downside. Euro as a whole is in recession, Greece is not out of the woods yet, ECB just cut interest rate to historic low of 0.50%. So the recent uptrend got many novice traders puzzled. Why is EURUSD trending up when Europe is still in such a mess? The answer? There are several main reasons, I shall list one. In the absence of negative news, currency pairs tend to trend up. You see.
When there is no negative news, there are no macro fundamental factors for big players to sell and push the currency down. EURUSD cannot be push down by 1 or 2 players. It requires the concerted efforts of many large players coming together at the same time to push EURUSD down. It is easier to get 2 large banks to conspire together and push a currency down for 50pips. However, how on earth do you get 10, 20 or 50 large banks and hedge funds to short EURUSD together for 500pips? Simple. When there are bad news and really really bad news. Such as the possibility and rumors of a Greece default. That is like a smoke signal for the large players to join hands and sell EURUSD simultaneously. With ECB lowering interest rate to 0.50%, that again, has become the smoke signal for the market players to continue their selling of EURUSD.
SHORT EURUSD 1.3030-50
SL 30-40pips
TP1 1.2870
TP2 1.2750
Pretty dead market yesterday, as EUR/USD simply consolidated within a very tight 50-pip range. Even the U.S. retail sales report failed to trigger a breakout.
Waiting for the definitive bearish signal, is the 65-days moving average going to intersect the 110-days one in the next few hours??
Although the short signal is obvious but the actual movement maybe not yet…there is still something left over to fight for at the resistant as MACD and Stochastic in the major time frames are contradicting one another
Is there no stopping the dollar rally?? EUR/USD closed lower yesterday despite positive data from the euro zone!
EurUsd, attacking the neck line of 1.2770.
EUR/USD dropped again. This time, however, it was due to the very disappointing GDP reports of France and Germany. The pair consolidated at first, but promptly broke out to the downside and fell to the 1.2850 MiP when the WTE data came out.
