By Mike Conlon, ForexNews.com on Oct 20, 2011 02:30:22 GMT
The euro has been trading in a somewhat tight range ahead of this weekend’s summit and debt crisis meting. Ness has been trickling out and rumors and conjecture have caused volatility within these ranges. At this point, the markets are much better suited to shorter-term trading, as teh uncertainty and risk are too great now.
You can see from the long wicks on the chart below that price is moving rapidly on momentum, only to be rejected back toward the middle of the range.
By Mike Conlon, ForexNews.com on Oct 19, 2011 01:48:07 GMT
The Australian dollar (AUD) is a desired currency for the the interest that is currently paid and is a favorite of carry-traders when risk appetite is high. Conversly, when risk aversion is high the Aussie usually gets sold off despite the underlying fundamentals of the Australian economy. The chaft below shows that we have a [...]
By Mike Conlon, ForexNews.com on Oct 18, 2011 01:43:21 GMT
Those in the market who were expecting British Pound (GBP) strength based on record inflation were sorely disappointed as the Pound is trading lower to start the day. There is a general misconception that the BOE is concerned about responding to inflation when in fact they are committed to just the opposite. When I saw [...]
By Mike Conlon, ForexNews.com on Oct 17, 2011 02:05:29 GMT
The Euro started out the week with much hope and promise but that quicklly faded after German officials dampened the mood surrounding the Euro debt crisis talks. Over the weekend, the G-20 voiced their own hope that Euro leaders would be able to come up with a plan by the end of the Euro summit [...]
By Mike Conlon, ForexNews.com on Oct 14, 2011 01:53:43 GMT
Let me start off by saying, I love gold. I want to own it, possess it, even want to hang out with it. However, I’m not certain that I love AT THIS PRICE. Part of the “problem” with being a market technician is that you just have to go by what the charts tell us. [...]
By Mike Conlon, ForexNews.com on Oct 13, 2011 01:52:55 GMT
Despite the recent decline in the US dollar and the increased risk appetite in teh marketplace, there is still major risk to the global economyemanating from Europe and the US, and now we can add China to the mix. Weaker export growth in China shos that their economy is slowing and this is not a [...]
By Mike Conlon, ForexNews.com on Oct 12, 2011 02:03:31 GMT
As we predicted on Monday, the Aussie has broken out vs. USD and is now trading firmly above parity as risk appetite has returned to the markets. Global stocks and commodities are up as the marekt believes that a resolution to the Euro debt crisis is near. In addition, a strengthening Chinese Yuan may actually [...]
By Mike Conlon, ForexNews.com on Oct 11, 2011 02:09:37 GMT
The 2-hour chart below is pointing to a rise in the Euro vs. USD as it is forming a bull pennant pattern which means that you can add the move of the length of the “flagpole” to the bottom of the pennant to get a target price. Based on this chart, price is currently sitting [...]
By Mike Conlon, ForexNews.com on Oct 10, 2011 01:53:15 GMT
The Australian dollar is approaching parity again with USD as risk appetite has returned to the market on news that there may be a solution to the Euro debt crisis by the end of the month. At least that’s the hope and the word coming out of the Euro zone. But there is more to [...]
By Mike Conlon, ForexNews.com on Oct 7, 2011 01:55:14 GMT
The Canadian Dollar has strengthened this morning after a better than expected employment report showed that the Canadian economy added 60K jobs last month, almost 4 times more than the expected 15K jobs. This helped push the unemployment rate down to 7.1% from an expected 7.3% and shows signs that the economy north of the [...]
By Mike Conlon, ForexNews.com on Oct 6, 2011 01:43:23 GMT
The British pound has tanked this morning vs. all currencies as teh BOE announced that they were increasing the size of their asset purchases by 75 billion to 275 billion citing potential liquidy strains. This sent the Pound plummeting lower after it failed to breach the R1 daily pivot resistance as seen on the chart [...]
By Mike Conlon, ForexNews.com on Oct 5, 2011 02:05:42 GMT
In his testimony to the Join Economic Committee yesterday, Fed Chairman Bernanke did not rule out further monetary easing if the economic situation worsened here in the US and around the globe so the markets took that as a sign that the free money trade may be back on. This caused a tremendous move in [...]
By Mike Conlon, ForexNews.com on Oct 4, 2011 01:36:04 GMT
EUR/JPY is trading at 10-year lows as risk aversion coming from the Euro debt crisis has caused extreme Yen strength prompting the new Japanese Fianance Minister to call for the Greek Bailout to be “transparent”. While he might believe this to be a good thing, my own personal feelings are that transparency would not be [...]
By Mike Conlon, ForexNews.com on Oct 3, 2011 02:16:41 GMT
The British pound (GBP) has been down with just about every other currency not named the US dollar of late, though it looks like it is poised for a rebound. There is a lot of data due out this week for the UK, including the Bank of England interest rate policy decision on Thursday. Th emarket [...]
By Mike Conlon, ForexNews.com on Sep 30, 2011 01:54:34 GMT
Thanks to a dual downgrade of their credit rating in New Zealand, the Kiwi has fallen to 6-month lows vs. USD. Part of the reason is also because of the risk aversion in the markets due to the Euro debt crisis, which is seemingly a reason for just about everything being lower. However, the Kiwi [...]
By Mike Conlon, ForexNews.com on Sep 29, 2011 01:52:41 GMT
Over the past few weeks, the USD/JPY pair has been trading in a fairly tight range for the safe haven currencies. A bottom had been put in near 76 after the Bank of Japan intervened in the currency the last time the Yen saw that level vs. USD. So there were many questions as to [...]
By Mike Conlon, ForexNews.com on Sep 28, 2011 01:24:23 GMT
It doesn’t really make sense to look at anything other than the Euro today as it is the Euro debt crisis that continues to drive sentiment in the markets. This creates the “risk environment” where the market decides if they want to take it or avoid it. Then the correlative properties of the currencies take [...]
By Mike Conlon, ForexNews.com on Sep 27, 2011 01:13:07 GMT
The British Pound (GBP) appears to have broken out of a nasty downtrend which had seen world markets tank as the US dollar strengthened. Problems in the Euro zone with their debt crisis increased fears in the marketplace which went into risk aversion mode. “Operation Twist” by the US Fed also helped increase short-term demand [...]
By Mike Conlon, ForexNews.com on Sep 26, 2011 01:33:01 GMT
Gold has been hit extra-hard after the intense market sell-offs we saw last week as risk aversion and US dollar strength have reduced demand for the precious metal. For some time, market participants have considered gold a “safe-haven”, though last week’s selling has shown gold for what it really is: an alternative currency. Thus it [...]
By Mike Conlon, ForexNews.com on Sep 23, 2011 02:03:41 GMT
The last time I wrote about a possible Bank of Japan intervention to the weaken the Yen, it happened within two days! So I’m writing about it again today! But seriously, the USD/JPY currency pair is approaching that 76 level which some have considered the “line in the sand” for the BOJ and is near the levels [...]
