EUR has turned bullish on the crosses and Sovereign bids are expected in EUR/USD near 1.2900. USD/JPY has put in a bullish close above 102.00. EUR/GBP looks to have turned bullish in the short-term and there is support in the cable at 1.5200/15 (bullish EUR/USD by inference). AUD/USD and NZD/USD have support levels near by [...]
This move is all about the unwinding of long-term safe-haven plays into currencies like the CHF and the AUD so don’t be getting all ‘beared-up’ on the EUR/USD, it’s not about that pair. EUR/CHF has started to accelerate higher, EUR/AUD has been bullish for some time as has EUR/JPY, and even EUR/GBP looks modestly well-supported. [...]
Dealers report some weak trailing stops going off in the EUR/USD above 1.3000 and 1.3015. The EUR remains well supported on the crosses (EUR/CHF, EUR/GBP, EUR/AUD etc) so if you want to buy the USD, you will find easier targets than EUR/USD.
Chart resistance at 131.00 has been breached. USD/JPY is through the big psychological barrier. EUR/USD is nearing strong Sovereign bids below 1.3000. Last Friday’s price action was extremely bullish.
I believe that pairs like EUR/AUD, GBP/NZD and the like are set for major moves higher. Have a look at a weekly EUR/AUD chart for instance and you will see a possible basing pattern and the fact that this pair could rise by 20% and still not endanger that down-trend. This is not about being [...]
I was watching this pair closely on Friday night and it felt to me as if it had turned a corner and exited its consolidation phase. Sovereigns have been buying EUR/USD below 1.3000 and dealers report buying interest now 1.3030/50. USD/JPY looks set to test 100.00 again. Depending on what happens later with RBA, we [...]
Anyone who traded through the NFP data on Friday probably has the same sense that I have, namely that the bull trend is very close to re-asserting itself. Firstly USD/JPY gapped higher and then EUR/USD rebounded after a nasty spike lower. All of this left EUR/JPY 200 pips higher on the day and this is [...]
All 6 major bank reports that I’ve read today expect the ECB to cut the refi rate to 0.5% but leave the discount rate unchanged at 0.0%. If this happens as expected, I’d expect to see very little change in the EUR/USD, possibly 30 pips either way depending on short-term positioning in the market at [...]
After the debacle with Cypriot bank accounts, I have even less confidence in the EZ to get things done right. Unemployment is a serious issue across the Zone and growth is non-existent. The US economy has been picking up in recent quarters but Fed QE policy is still a concern for USD bulls. The technical [...]
Dealers report that more EUR/USD longs have headed for the sidelines below 1.3065 and there are more stops directly below 1.3040. Don’t expect any massive sell-off just yet as some of the other big German banks are reporting buying interest at 1.3025/30 which should be tough to break. Looking at the crosses, EUR/JPY is also [...]