FOREXYARD: Forex News Blog | |
- EUR/USD Falling Wedge Pattern
- GBP/USD Finding Strong Resistance at 1.5820
- Forex: EUR/USD Pushed Lower by Ireland Downgrade
| Posted: 10 Dec 2010 07:48 AM PST
The EUR/USD continues to trade sideways and has created a falling wedge pattern on the hourlies. Looking at the hourly chart, traders may notice a falling wedge pattern developing. Typically a falling wedge will break to the upside (though this direction runs contrary to the current trend on the daily chart). Supports are found at 1.3050 as well as the bottom of the recent consolidation in the pair at 1.2970. Short term resistance levels are located at 1.3280 as well as 1.3400 and 1.3440.
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| GBP/USD Finding Strong Resistance at 1.5820 Posted: 09 Dec 2010 10:20 PM PST
The British pound's recent gains against the US dollar were short-lived yesterday as the pair found strong resistance at 1.5820. The Fibonacci retracement lines drawn on our daily chart suggest that this price level is actually a significant statistical barrier for the pair as the 61.8% line. We can see on the chart below that traders took profit at the 1.5820 level as the pair touched this Fibonacci line. Our Stochastic (slow) on the daily chart below also supports the notion that downward pressure is mounting. Traders may want to take advantage of these long-term fluctuations by entering short positions to capture the retracement back towards the 50% line at 1.5533. The fundamental side appears to support this downward notion as well. A Fitch downgrade of Ireland has put financial strain on the euro zone and UK, helping the US dollar gain ground against its Atlantic rivals. |
| Forex: EUR/USD Pushed Lower by Ireland Downgrade Posted: 09 Dec 2010 09:49 PM PST
The EUR/USD appears to be recovering mildly after yesterday's sharp plummet. Fitch Ratings agency downgraded Ireland's sovereign debt, pushing the euro to recent lows. The pair fell as low as 1.3163 yesterday before recovering back to the 1.3250 price level. If today's trade balance and consumer sentiment reports from the US and Canada come in as positive as expected, the US dollar could continue its bullishness against the EUR. Here is a roundup of today's leading events: 13:30 GMT: USD & CAD – Trade Balance The American and Canadian trade balance figures are set to be published today at 13:30 GMT and the news could help both currencies extend recent bullish gains made against their European counterparts if the reports come as expected. The trade balance measures the difference between imports and exports of a country and reflects levels of demand for the nation's goods. 14:55 GMT: USD – UoM Consumer Sentiment The University of Michigan (UoM) Consumer Sentiment report is a leading indicator of consumer sentiment and consumer spending. It surveys approximately 500 consumers regarding spending, outlook, and optimism regarding the future. If the report comes as expected, or higher, the USD could see some added bullishness before markets close for the weekend. |
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