Forex Market Updates & Commentary

---

• EURUSD falls below the 200 hour MA at 1.3858. 1.3834 next target tested
• EURUSD testing 200 hour MA at 1.3858
• Lagarde says in a dangerous new phase of crisis
• USDJPY falls back down to the familiar area
• Dow is up by 123 Nasdaq up 23 point S&P up 12.44
• Phillly Fed Index comes in at -17.5 vs -30.7
• EURUSD charts with key levels to watch
• EURUSD moves higher through the 1.3897 resistance
• BOE Weale says risk of recession increased since July.
• EURUSD moves above key resistance level at 1.3856
• ECB announces dollar liquidity measures in cooperation with the Fed and other central banks
• Charting the Majors with James Chen – Webinar 9:30 AM ON AIR NOW
• EURUSD moves lower in NY trade.
• China to liquidate treasuries not dollars according to story in the London Daily Telegraph
• USDJPY shoots higher despite the weaker US data

EURUSD falls below the 200 hour MA at 1.3858. 1.3834 next target tested Posted: 15 Sep 2011 07:33 AM PDT Action has taken the price below the 200 hour MA at the 1.3858 level. This opens the door for further downside with 1.3834 (trendline in the chart above) as the next target. A move below that level has the high from earlier today and then the 100 bar MA on the 5  minute chart.  Resistance now at the 1.3858 level.

EURUSD testing 200 hour MA at 1.3858 Posted: 15 Sep 2011 07:22 AM PDT

Lagarde says in a dangerous new phase of crisis Posted: 15 Sep 2011 07:14 AM PDT

USDJPY falls back down to the familiar area Posted: 15 Sep 2011 07:11 AM PDT

Dow is up by 123 Nasdaq up 23 point S&P up 12.44 Posted: 15 Sep 2011 07:03 AM PDT Gold down. Oil up about $1

Phillly Fed Index comes in at -17.5 vs -30.7 Posted: 15 Sep 2011 07:00 AM PDT Employment come in better at +5.8 vs -5.2 New Orders come in at -11.3 vs -26.8 Shipments come in at -22.8 vs -13.9

EURUSD charts with key levels to watch Posted: 15 Sep 2011 06:37 AM PDT In the 5 minute chart above, the price broke above the London channel at the 1.3873 level. It is also the spike from the NY low. This is a level of importance now for the technical traders. The hourly chart has the 200 hour MA and channel trendline both at the 1.3858 level  1.3997 is the 61.8% of the move down from the September 7th high to the low.  A break below that level would not be welcome by bulls. The 1.3897 is the 38.2% of the move down from the August high on the daily chart. This level corresponds with the hourly chart’s Fibonacci level. On the downside, the low from June comes in at the 1.3836 level. In summary, resistance at the 1.3897. Support at the 1.3858 and 1.3836 level.  The 1.3873 is between the levels.  Volatility is increased. The goal is to not blow up.  If risk is increased, positions should be lower rather than larger for retail traders.  The market is trying to find its groove.  From a fundamental perspective, the action was perceived as good news for banks which have been hurt lately and have had trouble finding liquidity. The market sentiment is changing now with the thought that the action is Central Bank intervention to preempt the bigger problem down the road (i.e. a euro liquidity crisis).  Problems are solved by throwing money at problems. This is another in the series of liquidity measures over the last few years that has taken money to artificially liquify the financial institutions.   Will another bullet be dodged?  You need growth. You need growth.  Liquidity that fills holes are not stimulating.

EURUSD moves higher through the 1.3897 resistance Posted: 15 Sep 2011 06:21 AM PDT The EURUSD has continued the sharp move to the upside breaking above the 1.3987 level. This level is now support for traders and will be a key level to watch as the morning progresses.  The level is the 61.8% of the move down from September 7th high on the hourly chart below and also the 38.2% of the move down from the August 29th high to the low in September on the daily chart above.  If the market settles down, this level will be a key bias for the pair. Below the 1.3897 level the next key support comes in at the 1.3858 level which is where the 200 hour MA is found and where channel trendline resistance is also located.

BOE Weale says risk of recession increased since July. Posted: 15 Sep 2011 06:17 AM PDT Cites Eurozone crisis as the biggest risk.

EURUSD moves above key resistance level at 1.3856 Posted: 15 Sep 2011 06:08 AM PDT The move by the central banks ti add liquidity through year end has sent the banking stocks higher and the EURUSD back to the upside on the “good news”. The price is breaking above the 200 hour MA and trendline resistance at the 1.3856 level.  The next target is 1.38979 for the pair which is the 61.8% of the move down from the September 7th high. Looking at the hourly chart the 38.2% of the move down from the August high.

ECB announces dollar liquidity measures in cooperation with the Fed and other central banks Posted: 15 Sep 2011 06:01 AM PDT The operations are an attempt to provide liquidity to the market through the year end. There has been some funding concerns in the interbank market and this is designed to address some of those issues it seems.  There has been tightness in the interbank market – especially to some banks who are perceived to be particularly risky as a result of Greece and other sovereign dept exposure.  This is designed to alleviate some of that bottleneck and keep the banks funded.

Charting the Majors with James Chen – Webinar 9:30 AM ON AIR NOW Posted: 15 Sep 2011 06:01 AM PDT Please join us today (Thursday, September 15) at 9:30 AM U.S. ET for FXDD’s Charting the Majors with James Chen. This free webinar will feature the current technical outlook on the major currency pairs in an interactive and educational session. Please click here to register: https://www1.gotomeeting.com/register/801854904 .

EURUSD moves lower in NY trade. Posted: 15 Sep 2011 06:00 AM PDT The EURUSD has fallen below the 38.2% of the days trading range at the 1.37779 level.  The pair was in a nice channel for most of the London morning but fell below in the NY session. The weaker US data is worrying to the global growth argument and EURUSD has tended to lose steam in such a scenario of late. The US stocks are showing unchanged to small gains so far in pre opening trading.

China to liquidate treasuries not dollars according to story in the London Daily Telegraph Posted: 15 Sep 2011 05:45 AM PDT http://blogs.telegraph.co.uk/finance/ambroseevans-pritchard/100011987/china-to-liquidate-us-treasuries-not-dollars/

USDJPY shoots higher despite the weaker US data Posted: 15 Sep 2011 05:42 AM PDT The USDJPY has caught a bid despite the weaker than expected data today. There are rumblings that the BOJ is checking rates (unconfirmed).  With the recent experience in the EURCHF, the market is a little nervous. Once again, there is no confirmation of this rumor but the price action raises an eyebrow.

You are subscribed to email updates from Forex News and Commentary by FXDD To stop receiving these emails, you may unsubscribe now.	Email delivery powered by Google
Google Inc., 20 West Kinzie, Chicago IL USA 60610