Forex Market Updates & Commentary

Week Ahead in Forex Monday July 11 2011
Talking Technicals with James Chen – Webinar on Tuesday, July 12 at 12:30 PM U.S. ET
Gold Strength Caps Off Steeply Bullish Week
EURUSD 100 day MA approached at 1.4269
USD/JPY Drop Traverses Bullish Channel
Moody’s questions if Italy can implement its austerity.
EURUSD continues fall in volatile trade as London looks to exit
USDJPY finds support at the 80.50 area. Keep an eye on the level.

Week Ahead in Forex Monday July 11 2011

Posted: 08 Jul 2011 01:39 PM PDT

Week Ahead in Forex Monday July 11 2011 with Greg Michalowski, Bill Lawless and Shawn Powell – Kick start your trading week. Register now for the class 9:30am Monday morning

Talking Technicals with James Chen – Webinar on Tuesday, July 12 at 12:30 PM U.S. ET

Posted: 08 Jul 2011 01:37 PM PDT

Please join us on Tuesday, July 12 at 12:30 PM U.S. ET for FXDD’s Talking Technicals with James Chen. This free webinar will feature a high-probability technical approach to trading in the Forex market. Please click here to register: https://www1.gotomeeting.com/register/789936545 .

Gold Strength Caps Off Steeply Bullish Week

Posted: 08 Jul 2011 12:36 PM PDT

Gold (daily chart) as of Friday (7/08/2011) has strengthened substantially for yet another day to cap off an entire week of bullish days. This significant strengthening occurs after price bounced off a strong confluence of support around 1475, which is a prior support/resistance level, a key 38.2% Fibonacci retracement of the last major bullish trend run, as well as the 100-period simple moving average. Currently, price action is approaching key resistance around 1550. In the event of a breakout above 1550, the most important resistance target immediately to the upside resides around the 1575-area all-time high. Downside support within the context of the current bullishness resides around the 1512 price region.

(Click on chart to enlarge. Forex chart key: price on 1st pane, Stochastics 14,3,3 on 2nd pane; horizontal support/resistance levels in black; uptrend lines in green; downtrend lines in red; 50-period simple moving average (SMA) in orange; 100-period SMA in brown; 200-period SMA in dark blue; Fibonacci levels in magenta.)

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

EURUSD 100 day MA approached at 1.4269

Posted: 08 Jul 2011 09:08 AM PDT

USD/JPY Drop Traverses Bullish Channel

Posted: 08 Jul 2011 08:55 AM PDT

USD/JPY (4-hour chart) as of Friday (7/08/2011) has been moving in a general consolidation framed by a slightly bullish channel. On the heels of the Non-Farm Payrolls report, price action dropped from the very top of this channel down to approach the very bottom before making a slight bounce. This drop occurs after price action was unable to sustain an upside breakout above a key bearish resistance trendline. In the event that bearish price action resumes with a breakdown below the current channel, a key downside target resides around the 79.50 price region, which represents the area of the significant low hit in early May.

James Chen, CTA, CMT
Director of Technical Research and Education
FXDD

Moody’s questions if Italy can implement its austerity.

Posted: 08 Jul 2011 08:29 AM PDT

Italy has joined the fray in the EU problems today.

EURUSD continues fall in volatile trade as London looks to exit

Posted: 08 Jul 2011 08:14 AM PDT

The EURUSD has continued the fall after moving through the 1.4269 level (100 day MA a second time). The first time through bottomed at the 1.4256 level – rebounded to 1.4284 then fell again. The break below the 1.4269 level a second time was not met with dip buyers but found selling intensify. The price continued through the 1.4246 level which is the 61.8% of the move up from the May low to the June high. A move above this level is now needed to change the bias. The low for the day at 1.4204 is the next target on the downside. Conditions are volatile as London and Europe look to exit for the weekend.