Monday, October 10, 2011

Forex Market Updates & Commentary

Forex Market Updates & Commentary

Link to Forex News and Commentary by FXDD

EURUSD moves closer to 38.2% target at 1.3680

Posted: 10 Oct 2011 07:14 AM PDT

With semi holiday conditions in the US and full holiday in Canada, the EURUSD is focused on stocks and commodities for fundamental reasons.  From a technical perspective (which I believe) are also having an effect.  Specifically, the EURUSD has moved above trendline resistance off the most recent highs at the 1.3598 level and has not been able to move back below that level since. The low post the break has been limited to 1.3611. 

The next key target for the pair is being approached at the 38.2% of the move down from the most recent high at the 1.4548 level to the recent low at 1.31449.  That level comes in at 1.36809.

Bobbys Corner-Open Market-Oct.10.2011

Posted: 10 Oct 2011 05:42 AM PDT

Good Morning:

The Euro advanced on the heels of comments by both the German and French leaders that they pledge to keep Greece in the Euro, and a plan to 
assist the banking sector within the Euro Zone.  They have given themselves a 3 week deadline to get these maters finalized, and devise a workable plan.  Presently they are looking to calm the markets-but they must come up with a long lasting plan.
The CHF also showed gains, as the Franc has had some recent weakness, investors are looking to take advantage of this weakness and fatten their coffers with CHF.
The currency market s are being lead by the positive events regarding the European banks.  If this rally continues we can expect to see some additional weakness for the greenback.

World equity markets are higher-as are US Futures at this time.
Oil is higher, as is Gold and Silver.  

HAVE A GREAT DAY & GOOD LUCK

EURUSD breaks above resistance at the 1.3598 level. Bull remain in control

Posted: 10 Oct 2011 05:36 AM PDT

The EURUSD has broken through trendlien resistance against the 1.3598 level  and shot higher.  Today is a semi holiday in NY (banks and government offices closed – stock market is open) and Thanksgiving holiday in Canada.  So liquidity may be light but the trend higher today has been unrelenting. The next target resistance comes in at the 1.3640 level which is topside trendline off the highs today (see chart below).  Support is now against the 1.3591 to 1.3601 level.

S&P affirms Frances AAA rating

Posted: 10 Oct 2011 05:06 AM PDT

The EURUSD is supported on the Merkel/Sarkozy pledge to recapitalize and keep Greece in the EU.

The two leaders have given themselves 3 weeks to devise a plan for recapitalization and find a solution for Greece debt load. It is my thought that recapitalization, leads to revaluation of Greek debt, lead to restoration of confidence in the EU (at least temporarily).  They are desparately trying to avoid a contagion and knock on effect caused by the imminent Greek default. The only way to do that is to recapitalize banks – somehow/someway – so that once it happens, all can say…”see, we are still here”.

Sentix investor confidence -18.5 vs -19.2; euro extends gains

Posted: 10 Oct 2011 01:47 AM PDT

Eur/Usd has made a new high of 1.3570 on the heels of better than expected Sentix investor confidence reading.

French Industrial Production up 0.5% from prior month

Posted: 09 Oct 2011 11:50 PM PDT

A 0.7% decline was expected. Eur/Usd currently trades at 1.3473 in quiet trading.

10-10 Economic Calendar

Posted: 09 Oct 2011 08:47 PM PDT

USD/SGD looking for a rebound

Posted: 09 Oct 2011 08:05 PM PDT

Currently trading around the lows after a seeing some selling earlier in the session, the USD/SGD appears to be looking for a rebound. If it is not found we look lower to 1.28775 as the target; the 38.2% fibo line is the current bullish target.

Singapore News

Posted: 09 Oct 2011 08:03 PM PDT

The Monetary Authority of Singapore is considering whether financial institutions need to draw up plans for a quick recovery or closure in the event of a crisis, reported by the Business Times citing regulators.

China’s Home Prices to Decline

Posted: 09 Oct 2011 08:00 PM PDT

China’s home prices are expected to gradually decline as a result of rising inventories and a slow down in property market transactions, reported by the Xinhua News Agency.

 

EURUSD Reacting to Resistance

Posted: 09 Oct 2011 07:57 PM PDT

The EURUSD channel below seems to be holding very well since August, but the bias is clearly negative and outside of major resolution out of Europe, more uncertainty seems likely to bring lower prices. The 4-100hr mavg is now running parallel to trendline resistance.

 

USD/HKD support @ 7.78049

Posted: 09 Oct 2011 07:49 PM PDT

Since the end of last week the pair has found support from the 7.78049 level. Since the open the pair has slowly creeped higher with a session high of 7.78269 with the next target to the topside at 7.78349; the 100 hour moving average. Continuing higher we have 7.7842 – the 38.2% fibo line on the move from Tuesdays high to Wednesdays low.

USDSGD Looking For Support

Posted: 09 Oct 2011 07:13 PM PDT

Since the USD rally has slowed the Singapore Dollar has pushed higher against the USD moving the pair through the 61.8% retracement of the late September move and is approaching the 4-100hr moving average, where perhaps the pair can find a bid, particularly if USD repatriation (from funding activities in 2011) picks up some steam here in the 4th quarter.

USDCNH Turning North?

Posted: 09 Oct 2011 06:54 PM PDT

The USDCNH could be moving higher as the former trendline resistance was not broken and now we see the trending 21 day moving average breaking above the 100day mavg.

 

 

China Cuts Fuel Prices

Posted: 09 Oct 2011 04:09 PM PDT

In another attempt to further tame inflation the Chinese government has for the first time this year cut fuel prices after crude oil prices have softened recently.  The cut represents a 3.5% drop for gasoline and 3.9% for diesel.
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