Forex Market Updates & Commentary

Midpoint of 2010 low to 2011 high at 1.34077
IMF Lagarde says sees narrower path for recovery
USDCHF corrects to 100/200 bar area
Dow down -322. Oil down -$4.20. S&P -31
EURUSD squeezed higher. 1.3473-78 upside target now
Bobbys Corner-Open Market-Sept.22, 2011
Charting the Majors with James Chen – Webinar STARTING SOON at 9:30 AM U.S. ET
Fed is going to cut the rate of FX swap lines to Europe: Market chatter.
The EURUSD makes new lows continued risk liquidation
S&P getting closer to key support at $1100
US Leading Indicators & House Price Index Data To Be Released at 10AM
Canada Retail Sales Drop to -0.6 vs Prior of 0.7%, USD/CAD Stronger on the News
US Jobless Claims Continue The Weak Trend
Jobless not so hot. Canada Retail Sales not so hot either…selling risk
Jobless Claims Data Due at 8:30AM

Midpoint of 2010 low to 2011 high at 1.34077

Posted: 22 Sep 2011 07:00 AM PDT

Watch level for support.

IMF Lagarde says sees narrower path for recovery

Posted: 22 Sep 2011 06:51 AM PDT

US could accomodate more short term growth

USDCHF corrects to 100/200 bar area

Posted: 22 Sep 2011 06:50 AM PDT

Dow down -322. Oil down -$4.20. S&P -31

Posted: 22 Sep 2011 06:45 AM PDT

EURUSD squeezed higher. 1.3473-78 upside target now

Posted: 22 Sep 2011 06:34 AM PDT

There was a report that the Fed may cut the rate of FX swap lines to Europe which the market interpreted as dollar bearish (or perhaps it was looking for an excuse to move higher?). In any case, the price moved higher and is testing the high for NY, the 50% of the most recent leg lower and the trendline off the high from yesterday at the 1.3473-78 area. A break above this level opens another door for more breathing room to the upside.

On the downside, the 1.3408 level is the 50% retracement of the move up from the June 2010 low. That level will likely spur on profit taking buyers should the price move toward it again.

Bobbys Corner-Open Market-Sept.22, 2011

Posted: 22 Sep 2011 06:11 AM PDT

Good Morning:

Yesterday’s comments by the Fed added to the sell off in equity markets and commodity markets worldwide.
“Operation Twist”, which is the name that the Fed has placed on it’s newest initiative to stimulate the economy did nothing to ease the nervous markets.
The new program will have the Fed buying longer maturity Treasuries, while selling an equal amount of short term Treasuries.
The Fed reiterated their pledge to keep interest rates at record lows through the middle of 2013.
As the US economy is not being hurt by high interest rates-this initiative may do very little to help the ailing economy.

In the Euro Zone-the latest data is showing continued weakness across the board. I think that the ERB will need to re think their recent increase in interest rates, and now that ECB President Trichet is on his way out of office-the new President. Mario Draghi may be forced to possibly reverse that decision.

The USD was the benefactor of the Fed’s “inaction” yesterday, as the greenback rose, as all other instruments took a beating.

World wide equity markets are lower-and US Futures are down over 270 points at this time-indicating a lower opening when the Dow opens at 9:30 AM.

HAVE A GREAT DAY & GOOD LUCK

Charting the Majors with James Chen – Webinar STARTING SOON at 9:30 AM U.S. ET

Posted: 22 Sep 2011 06:10 AM PDT

Please join us today (Thursday, September 22) 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/213872497 .

Fed is going to cut the rate of FX swap lines to Europe: Market chatter.

Posted: 22 Sep 2011 06:09 AM PDT

Unconfirmed.

The EURUSD makes new lows continued risk liquidation

Posted: 22 Sep 2011 05:54 AM PDT

The EURUSD has resumed the decline after testing the 38.2% of the last move lower (see 1.34786 level). The fall lower has moved the pair back into the downside channel (1.3414) . Stay below this line and the downside still dominant. The pair continues to suffer on weak growth/risk liquidation. This has spurred on the dollar buying.

The last time the price was at these level was in Mid January 2011. The price was trending to the upside. Below is the hourly chart from that period (using the 100 hour MA as support – blue line). The levels of significant at the time were 1.3395, 1.3356 and below that 1.3244.

S&P getting closer to key support at $1100

Posted: 22 Sep 2011 05:47 AM PDT

As risk gets hit, the stock market is approaching a key level. The 38.2% of the S&P index comes in at the 1101.73 level and the low from August 9th tested this level and bounced. The consolidation seen since that time is bear flagging. A break lower would likely lead to panic selling.

Traders may look to buy against the support with stops below. However, be aware. Be prepared. A break should lead to further selling of the risk pairs in currencies.

US Leading Indicators & House Price Index Data To Be Released at 10AM

Posted: 22 Sep 2011 05:44 AM PDT

Canada Retail Sales Drop to -0.6 vs Prior of 0.7%, USD/CAD Stronger on the News

Posted: 22 Sep 2011 05:34 AM PDT

US Jobless Claims Continue The Weak Trend

Posted: 22 Sep 2011 05:32 AM PDT

Jobless Claims: Survey: 420K Actual: 423K Prior: 428K Revised: 432K

Continuing Claims: Survey: 3722K Actual: 3727K Prior: 3726K Revisad: 3755K

Jobless not so hot. Canada Retail Sales not so hot either…selling risk

Posted: 22 Sep 2011 05:32 AM PDT

ON a day where global growth is a concern, these numbers are not all that great.

Commodities getting hit today.