Wednesday, February 24, 2010

The Advisor Weblog

The Advisor Weblog

Hourly perspective for majors

Posted: 24 Feb 2010 06:35 AM PST

Best pair to trade now: EUR/USD

Posted: 24 Feb 2010 06:13 AM PST

Waiting for Bernanke’s testimony

Posted: 24 Feb 2010 04:46 AM PST

Market seems to be on hold, waiting for the number of mayor events later at 3:00 p.m. GMT today. Federal Reserve Chairman Ben Bernanke’s is giving his testimony to the Senate, and will probably have to face questions on how he plans to end the worst job slump since the Great Depression. Although he is widely expected to reaffirm that interests rates will remain low for an extended period, investors seem to be uncertain over how greenback will react after the testimony; lack of the already famous “remain low for an extended period” likely to be understood as a sooner rate hike that should favor dollar wins across the board.

At the same tame, US New Home Sales will be released, expected slightly to the upside compared to previous month, despite the number has been falling since past December, one of the factors that generates past months risk aversion sentiment.

Finally, Treasury Secretary Timothy Geithner will testify on the fiscal 2011 budget before the House Budget Committee.

So it’s time to take a step aside the market, and give it the chance to digest all this news, to define what could probably be the rest of the week trend.

GBP/USD, hourly flag

Posted: 24 Feb 2010 04:23 AM PST

Pair is inside a small hourly flag in the hourly chart, with indicators turning bearish, still in a consolidation stage; firs support comes at the 1.5410 area, base of the channel, ahead of strong 1.5350 zone; under that, expect the pair to extend the downside close to 1.5310. Resistances from current price are at 1.5460, 1.5490 area, and then 1.5520.

 

Eur/Usd corrective movement

Posted: 24 Feb 2010 03:16 AM PST

As seen on this 4 hours charts, pair has reached the 38.2% retracement of the last short term bearish rally, and retreated from the 1.3570 area, also 20 SMA in this time frame turning that zone in our first resistance level for today. Above it, next in line is the 1.3610 area, ahead of stronger 1.3640 static zone. Momentum has lost the bearish momentum turning slightly up, far from any signal. If the pair lost the 1.3530 support, I would expect a small leg down, back to 1.3490/1.3500 zone. Next supports today, are located at 1.3440 and 1.3410.

Majors’ sentiment for today

Posted: 24 Feb 2010 02:32 AM PST

Here is majors’ sentiment for today:

Eur/Usd: Slightly Bullish

Gbp/Usd: Bearish

Usd/Chf:Slightly Bearish

Usd/Jpy: Bearish

Eur/Gbp: Slightly Bullish

Eur/Jpy: Slightly Bullish

Gbp/Jpy: Slightly Bearish

Starting the day

Posted: 24 Feb 2010 02:24 AM PST

Hi everyone and welcome back. Quiet Asian session for what it worths’ to mention, majors consolidated at the lows reached against dollar and yen past Tuesday. Stocks and commodities are down, with gold under the $1100/oz level; euro zone stronger than expected data is helping the hegemonic currency at the moment, after approaching  back yesterday to the strong 1.3490 support area. Still I see the movement mostly corrective aftr yesterday’s a bit overeacted fall. Minutes ago I was reading that  Greece’s unions shut down transportation, medical and educational facilities today in a second 24-hour strike aimed at resisting Prime Minister George Papandreou’s drive to cut the European Union’s biggest budget deficit. Anyway, majors’ likely to be waiting for U.S. housing data later on the day. Take a look at the calendar, while I prepare the technicals perspectives:

http://www.fxstreet.com/fundamental/economic-calendar/

Have a great day! 
Posted by at 5:25 PM

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