The Advisor Weblog

U.S. Stocks halt dollar rally
Usd/Jpy supported by treasuries
Dollar accelerates
Eur/Usd close to daily low
Gbp under pressure; H&S in the daily chart
Majors’s sentiment for today
Starting the day

Posted: 21 Sep 2009 07:01 AM PDT

U.S. stock open lower but are quickly regaining the upside, while gold fails to break under $ 1000/oz and keeps hovering around that level, halting dollar rally. Early to say, as we are barely 15 minutes from opening, let’s see how things develop: if S&P falls under 1055 and DJIA under 9720 dollar will likely regain the upside.

Usd/Jpy supported by treasuries

Posted: 21 Sep 2009 05:37 AM PDT

With treasury prices a little higher early Monday in a day of reprieve ahead of record supply and the FOMC meeting, Usd/Jpy regained the upside, starting the week also above the 4 hours descendant channel we have been following these days. Also with a double floor around 90.20, and with the neck around 91.60, pair should address now to the 93.00 area to complete that figure. 4 hours charts anyway look over bought, so consider some downside corrections before a new leg up. Resistances from current level lie at 92.60, followed by mentioned 93.00 area, ahead of stronger 93.35 level. Supports, for the next hours lie at 92.20, 91.80 and finally 91.50 area.

Dollar accelerates

Posted: 21 Sep 2009 05:27 AM PDT

Greenback is accelerating the recovery, watch commodities: AUD under 1.0860, and CAD above 1.0770 running quickly. Gold at 996, close to daily low is supporting the bias. Euro downside extended quickly as posted earlier; still be aware this can be profit taking and corrective movements. However, if Eur/Usd manages to close the day under mentioned 1.4550, more dollar strength will come ahead.

Eur/Usd close to daily low

Posted: 21 Sep 2009 05:19 AM PDT

Eur/Usd remains quite close to the 1.4640 support level, and tending lower. Due to the overbought conditions the pair has, downside correction could easily extend to the strong 1.4550 area before halting. Under mentioned 1.4640, pair next support comes at the 1.4600 area ahead of mentioned 1.4550. If this last gives up, which I don’t see right now, expect the downside rally to extend. Meanwhile, above 1.4680, pair could attempt to reach the 1.4720 level, ahead of 1.4770 zone, also don’t seen for today.

Gbp under pressure; H&S in the daily chart

Posted: 21 Sep 2009 04:59 AM PDT

GBP/USD remains capped under 1.6200 level, holding the bearish bias in 4 hours and daily time frames, although rally seems a bit over extended to the downside. Key level to watch is the 1.6100/10 area, September lows, also 200 EMA in the daily chart. Daily close under that level, will likely confirm the head and shoulders figure clear in daily chart, and trigger more bearish momentum in the pair ( the figure has a 900 pips height between neck and top of head). Anyway and for next hours, supports lie at 1.6135 today’s low, followed by the mentioned 1.6100 area, ahead of 1.6060 level. Resistances on the other hand lie at 1.6200, 1.6230 and then the 1.6280 zone.

Majors’s sentiment for today

Posted: 21 Sep 2009 04:18 AM PDT

Here is majors sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Bearish

Usd/Chf: Bullish

Usd/Jpy: Bullish

Eur/Gbp: Bullish

Starting the day

Posted: 21 Sep 2009 04:14 AM PDT

Hi everybody and welcome back! Week started with dollar gaining ground, mostly of course corrective, after one of the most bearish week the greenback had in a long long time. Gold is back to $ 1000/oz, barely holding the level, remember next key support there is 980 area. Stocks are down with Europe negative, and U.S. futures to the downside, supporting dollar a bit; with no much fundamental data ahead, technical points today will be key. Let’s find them out!.

Have a great day!