The EURUSD pair has broken above its resistance at 1.3175 but has weakened since. [Read more…] about Role Reversal To Cushion The Fiber?
The US dollar may weaken again against the euro if the EURUSD pair breaks our from what appears to be a falling wedge chart pattern that it has formed since yesterday. [Read more…] about USD To Weaken Further Vs. The EUR
A hidden bearish divergence or a negative reversal in other texts, where the price makes lower highs while the stochastics mark higher highs, suggests that the EUR/USD pair may slip in the very near term as for my technical analysis. [Read more…] about Negative Reversal Seen On EUR/USD
In my analysis, the Euro could further [Read more…] about The Euro vs US Dollar (EUR/USD) Weekly Outlook (October 10-15, 2011)
The euro got hammered by the us dollar during the last 4 days when it slipped sharply from 1.4940 last May 4 to a low of 1.4254 yesterday. However, it appears that the euro bulls will be looking to rebound from its recent losses shortly. [Read more…] about Euro To Bounce Back Against The Greenback?
The Euro dropped almost 300 pips from 1.3859 to 1.3543 against the US dollar last week when European Central Bank President Jean-Claude Trichet said [Read more…] about Euro Versus The US Dollar (EUR/USD) Could Drop Further
The US stock market dropped sharply last Friday as violent clashes in Egypt rocked the global financial markets. [Read more…] about Violent Clashes In Egypt Rocked The Dow And The Euro
Good day forexers! In my technical analysis, there could be a symmetrical triangle forming in the [Read more…] about Easy 100 Pips In The Euro Against The US Dollar!
Hello traders from all parts of the world! My forex pick for the day is the EURUSD pair or “fiber” as many would call it. As you can see, the Euro has been strong against the greenback since it broke out from the cup and handle formation last September (kindly check here). Afterwards, a bullish symmetrical triangle formed, broke out to follow through the upward momentum and reach the 1.4282 9-month high last November 4 (kindly see it here). However, the Euro now sank against the US Dollar dropping by a thousand pips since the beginning of this Month. Key factors highly involved in demoting the pair’s value include the [Read more…] about EURO Still On An Uptrend Against The US Dollar
Good day ladies and gents of FX trading! In today’s forex pick is the daily canvas of the EURUSD pair a.k.a the “fiber”. The last time I posted on this was when it broke out from the bullish symmetrical triangle formation (kindly see this) and made a new 10-month high at 1.4248. However, as you can see from its chart, the EURUSD has slipped for a fifth straight day today after marking that high. Those who are long on the euro and short on the greenback, however, should [Read more…] about Euro to Get Back on the Bullish Track
Calling all euro bulls! The EURUSD pair or the “fiber” as what some people call it has just broken out from a symmetrical triangle. As you can see from its daily chart of this forex pick of mine, the pair has actually reversed its downtrend when it escaped from a cup and handle pattern. It then continued to trade strong before consolidating into a symmetrical triangle for the last two weeks. Given this recent price action, though, I can say that buying the euro and selling the US dollar at the same time would be a better idea at least from a technical point of view. Such breakout could propel the pair up until it hits some resistance at 1.4250 or even at 1.4300. That’s at least a 200-pip upside in the near term. Not bad! On a different perspective, you might want to chance upon my colleague’s target price in his post.
The remaining days of this week would be crucial for the EURUSD. A high degree of volatility is expected in all currency pairs especially the fiber because of the US Federal monetary policy decision tomorrow and the release of the US’s non-farm payrolls (NFP) report on Friday. There has been talks that the Fed would engage into another non-traditional money printing activities (quantitative easing) in the days to come in its desire to further ease the day-to-day market interest rates in order to encourage more lending and spending. Puff Daddy predicted it correctly – “More money, more problems.” Of course the problem here is reflected on the greenback as its valuation gets diluted by the increase in money supply. Friday’s NFP will likewise create some noise. Based on the recent estimates, about 65,000 jobs were added by US firms in the last month as against the 95,000 that got laid off in the previous period. If this figure is correct, then such would spark optimism among market participants, causing them to continue supporting non-dollar currencies like the euro.
Good day Forex friends! Last October 7, I mentioned in my post (kindly see it here) the the euro has still a lot of room to move up against the US dollar. Zooming closer to its, 4-hour chart, you will see that the EURUSD pair has been trading in a very well defined rising channel. Given the pair’s present trend and the channel’s degree of ascent (45 degrees), I’d say that the euro rise at least in the near term could be easily sustained. Furthermore, another bullish sign propped out of the pair’s charts when it gapped up to open the this week. A bullish gap is an occurrence when the opening price opens much higher than the high of the previous period. Obvious, this is a positive sign as this suggests a rapid demand for the security which in this case is the euro. So as long as the support of the rising channel or the uptrend line holds, the EURUSD or the fiber would most likely conntinue its move north. In case it weakens, the channel’s support and the bottom of the channel could keep it from falling further.
For this week, no material economic data will be reported from the euro zone. Given the lack of economic flow, the EURUSD may just resume its present trend. Then again, it’s also possible for the pair to retrace a bit as investors lock in some of their profits.
Hello FX friends! Last September 24, I specifically noted the Euro’s potential to gain in valuation (kindly see that post here). At that time, the EURUSD pair or the fiber had just broken out from a cup and handle formation. So if you took my cue and went long there and then, you would have been up by almost 600 pips already! While you might have missed the first the EUR’s initial move, technically speaking, there’s still a chance to ride this train. For one, Elliot Wave Theory states that the third wave is usually the longest wave of a 5-wave cycle. In some instances, though, the third only equals the length of the first wave. But even if this is the case, notice that the present wave 3 still falls short of wave 1, suggesting that there could be more space for the pair to move higher. Secondly, the pair’s upside target (gauged by projecting the height of the pattern from the point of breakout) has not yet been met.
Earlier today, the European Central Bank (ECB) left its interest rate unchanged at 1.00% for the 17th straight month. During the global financial crisis and the recent credit troubles in the Euro zone, the ECB was forced to lends banks with cheap cash and to support this until the whole bloc recovers. While the economy has been rebounding, it remains to be fragile and pulling the central bank’s lifeline would endanger the economy once again. Despite the ECB’s decision to hold rates, the euro continues to trade strongly against the greenback because of the overall bias against the USD.
Tomorrow, the US’s NFP report will be published. Expect an increase in volatility around the time of the data’s release. In any case, firms in the US are seen to have added 3,000 jobs after they laid about 54,000 during the previous month. An increase in employment, as we know, would be beneficial for the economy and, thus, would spark some risk taking. A jump in optimism then would lead investors to more US dollar selling which in turn props up the valuation of the euro.
Updates: 11pm 3-11. Stop loss hit. Wasn’t able to monitor the price going up when I left my computer. Leaving an open position w/out setting a target price is really a bad idea… Lost 13 pips.
A potential breakdown from the symmetrical triangle chart pattern triggered me to short sell the EUR/USD of the forex market again @1.3571 after my trade hit the stop loss earlier. Stop loss is currently set @1.3635 (64 pips) as for my technical analysis. Updates:12pm 12-25. Took profits as seen on the right image in the 15-min time-frame. 118 pips up!
Forex market: The image on the left is a 3-hour chart of the fiber or the EURUSD currency pair and the price is trying to breakout from its downtrend, once the downward trading range’s resistance is broken another good entry awaits as for my technical analysis. On the right is also an image of EUR/USD but in the 30-min time frame and just when it broke out from a inverted head and shoulders chart pattern, I went long.
Bought EUR/USD @1.3661. Stop loss firstname.lastname@example.org (43pips). Initial target price @1.3782 (121pips).
Updates: Stop loss moved to entry price was hit. Trade was break even.