Forex Market Updates & Commentary

USDCHF rotating down. Trendline support at 0.9019.
UK Chancellor Osborne is also commenting
German Finance minister Schaeuble: Europe on right path to reduce deficits
ECB Weidman says economic situation is better than the mood
German Finance Minister: May need to revise the 2nd Greek bailout
The EURUSD will now eye support at 1.34717 area
GBPUSD bounces after failed break lower
Bobbys Corner-Open Market-Sept.23,2011
EURUSD borders defined
EURUSD bounces off the support. Test resistance now.
The NY Morning Forex Commentary for September 23rd 2011
EURUSD pressured lower as NY enters
British Bankers Association mortgage approvals up 35,226 in August
SNB says it is ready to purchase unlimited currencies in its quartely report
Greek fin. minister told law makers sees three scenarios: messy default, implementation of July 21 deal, or orderly default with 50% haircut.

USDCHF rotating down. Trendline support at 0.9019.

Posted: 23 Sep 2011 06:54 AM PDT

The USDCHF failed yesterday on the break above channel trendline. The failure led to a decline to the bottom trendline support. The price his moving back dwon toward support at the 0.9019 trendline. A move below would open the door for further declines with the 0.8676 level (38.2% retracement as the next target support). The 100 hour MA and shallower trendline at the 0.8948 and 0.8934 are other downside targets.

On the topside a move above the 0.9067 and then 0.9080 would be needed to worry shorts. The 0.9067 is the 38.2% of the move up from Wednesdays low (see chart below). The 0.9080 area is a ceiling from today’s trade.

UK Chancellor Osborne is also commenting

Posted: 23 Sep 2011 06:45 AM PDT

Says:

IMF quite right on recapitalization needs (200 billion as per Lagarde)
EFSF firepower may not be adequate
There is an awareness of the need to recapitaliz

German Finance minister Schaeuble: Europe on right path to reduce deficits

Posted: 23 Sep 2011 06:43 AM PDT

G20 welcomed July decision to increase EFSF. Urged quick implementation
Does not make sense to speculate about additional Greek decisions
Recapitalizations of European banks is not a matter for the ECB but the EU members

ECB Weidman says economic situation is better than the mood

Posted: 23 Sep 2011 06:38 AM PDT

Does not expect Germany to return to recession
German stimuus wont help Eurozone much
Does not want to speculate on what ECB could do or talk default
Ecb has shown in the past that it is prepared to provide banks with long term liquidity

German Finance Minister: May need to revise the 2nd Greek bailout

Posted: 23 Sep 2011 06:31 AM PDT

This has the EURUSD moving toward the 1.34717 support level.

The EURUSD will now eye support at 1.34717 area

Posted: 23 Sep 2011 06:19 AM PDT

The EURUSD bounced hard off support and the move above the close at 1.3459, the 1.34717 level (38.2% of the days range, and move to test the 100 and 200 bar MA on the 5 minute chart above has been impressive. Now, traders will look for the 1.34717 level to hold support and for a move to above the 1.3500-04 level to squeeze more shorts. It is Friday. Anything can happen. Stocks are lower on opening. If stocks can erase some losses. The technical levels are there for support and defining risk.

GBPUSD bounces after failed break lower

Posted: 23 Sep 2011 06:08 AM PDT

The GBPUSD failed on a break lower in early NY trade and the price moved higher. IT is now testing (well above) the first resistance area with 1.5444 level. The next target would be the high for the day and above that key resistance against the 1.54868 which is the 50% midpoint of the move up from the May 2010 low to the high (see chart below).

Bobbys Corner-Open Market-Sept.23,2011

Posted: 23 Sep 2011 05:53 AM PDT

Good Morning:

The overnight session continued to be voiltile after European equities started the day higher-then gave up those gains and then more.
The Euro also showed some strength early on, but those gains were also given up.
European banks are one of the main catalyst for the sell off in the equity markets for the past few days, as investors look to see the status of their balance sheets.
Moody’s downgraded long-term deposit and senior debt rating of eight Greek banks-I guess that took nobody by surprise.
The G-20 pledged a “strong and coordinated” response to the weak global economy-but that only raised an eyebrow or 2 before it was forgotten.

Oil dropped under $80/barrel and Gold is under $1700/oz presently.

With the global economies in turmoil-lots of talk that we are in or going into a double-dip recession are all reasons for the global sell off.

Until the markets see some tangible monetary policies implemented, the turmoil will continue.

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

EURUSD borders defined

Posted: 23 Sep 2011 05:48 AM PDT

The 1.3459 level is the close from yesterday. The 1.34717 is the 38.2% of the days range. On the downside the 1.3407-20 is support from the 50% of the move up from June 2010 low and the support area from yesterday. A move outside will be needed to spur on further action. 1.3500 area is the 100 and 200 bar MA on chart above and target for the pair.

EURUSD bounces off the support. Test resistance now.

Posted: 23 Sep 2011 05:30 AM PDT

The EURUSD bounced off the support (see prior post) at the 1.3407-20 area (the low came in at 1.3418) and is now up testing the close from yesterday at 1.3459 and above that the 1.3471 level. The 38.2% of the move down from the daily trade comes in at 1.3472 currently. A move above these levels opens up the window for further gains in the pair. A move back below the close from yesterday at 1.3459 will be needed to rotate the price back lower. Decision time for the pair.

The NY Morning Forex Commentary for September 23rd 2011

Posted: 23 Sep 2011 05:13 AM PDT

EURUSD pressured lower as NY enters

Posted: 23 Sep 2011 04:33 AM PDT

The EURUSD squeezed higher in the Asian session and tried again in the early phases of the London session but has moved back lower in the last few hours of trading. Greece bank downgrades, comments about Greek default, comments that European bank are underestimating the writedown on Greek bonds by as much as 21%. Finland is balking about EFSF flexibility, and rumblings about political reluctance in Greece to go through with austerity.

From a technical perspective, the price is below the close from yesterday which came in at the 1.3459 level. This and the 1.3471 level will be the first upside resistance levels that the bears/shorts will want to see the price stay below. Above that the 1.3490 level will be eyed (38.2% of the days range). ON the downside 1.3420, 1.3407 which is the 50% of the Long term move up from the June 2010 low is also a key level.

No economic data today.