Euro Drops to New 2-Year Lows Following Weak Economic Sentiment

By DailyFX on May 30, 2012 01:27:21 GMT

THE TAKEAWAY: Eurozone economic sentiment falls to 2.5 year low -> Bank of Spain governor resigns -> Euro hits two year lows Eurozone economic sentiment dropped to a two and a half year low, as the measure for May came in at 90.6, much lower than the expected 91.9, and a 2.3 point drop from [...]

Gold falls 1.5% as euro hits near two-year low

Posted on May 30, 2012 06:34:00 GMT 6:34 PM | Originally posted at NDTV

…higher returns to buy debt issued by the euro zone’s third-largest economy at an auction tainted by banking troubles in neighbouring Spain. Market players are worried about Spain’s plans to raise new funds to recapitalise nationalised lender Bankia when the…

• US stocks fall 1% as Europe worries grow
  Posted on May 30, 2012 06:34:00 GMT 6:34 PM | Originally posted at NDTV
• Fears over Europe push 10-year rate to 66-year low
  Posted on May 30, 2012 06:25:00 GMT 6:25 PM | Originally posted at The Seattle Times
• Brian Moynihan calls Europe an indirect threat to Bank of America, U.S. economy
  Posted on May 30, 2012 06:19:00 GMT 6:19 PM | Originally posted at Charlotte Business Journal

USDOLLAR Fills Gap; Larger Channel Still Resistance

By DailyFX on May 30, 2012 01:30:21 GMT

Daily Bars

The Dow Jones FXCM Dollar Index (Ticker: USDOLLAR) has reversed off of channel resistance. A break higher is ultimately expected but probably not before a much needed pullback. 10130 is interim support but 10047-10076 is a zone that of interest over the next 1-2 weeks. Having filled the gap left open from Sunday’s open, price may be free to resume its corrective pattern.

LEVELS: 10047 10076 10130 10225 10309

— Written by Jamie Saettele, CMT, Senior Technical Strategist for DailyFX.com

Learning the Lingo: Whipsaw

A whipsaw is a condition where the market unexpectedly heads in one direction, but then is followed quickly by a movement in the opposite direction in a confusing manner. The origins of term is derived from the push and pull action used by lumberjacks to cut wood with a type of saw with the same name.  Whipsaws typically move the market in such a way that traders that are trading either long or short using tight stops are stopped out of the market.

There are two types of whipsaw patterns. The first involves an upward movement in the share price, which is then followed by a drastic downward move, which causes the share’s price to fall relative to its original position. The second type involves the share price to drop for a little while, and then suddenly, the price abruptly surges towards positive gains relative to the stock’s original position.