The Advisor Weblog

Best pair to trade now:GBP/USD
EUR/USD big and small picture
Majors’ sentiment for today
Finally

Best pair to trade now:GBP/USD

Posted: 10 May 2010 03:28 AM PDT

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-05-10.v02.html

EUR/USD big and small picture

Posted: 10 May 2010 02:53 AM PDT

I have been following this trend line in euro, since it was broken past Tuesday: is a long term ascendant trend line, coming form January 2002 lows around 0.8560; pair has completed a pullback to the trend line, exactly at 1.3100, and for now, at least halted the rally.

Intraday tralking, 4 hours indicators are still bullish thus the pair is retreating from that high, with 1.3010 as key support: is the 61.8% retracement of last daily fall; if pair manages to hold above, chances are to the upside, with 1.3060 and 1.3100 as intraday resistance levels for today. under it, pair could start some downside correcion after rising more than 300 pips, that will find supports at 1.2970 and 1.2920. However, be extremelly cautious today: market is still too nervous and volatile, able to trigger wild spikes either side.

Majors’ sentiment for today

Posted: 10 May 2010 02:13 AM PDT

Majors’ sentiment for today:

Eur/Usd: Bullish

Gbp/Usd: Bullish

Usd/Chf: Bearish

Usd/Jpy: Bullish

Eur/Gbp: Bullish

Eur/Jpy: Bullish

Gbp/Jpy: Bullish

Finally

Posted: 10 May 2010 02:10 AM PDT

Hi everyone, and welcome back. Finally, the euro zone has decided to act, something that should have done a couple of months ago, to avoid past panic weeks. But as say, better late than never right? Anyway, market was expecting since past Friday an announcement regarding a rescue plan, and market opened past Asian session with huge gaps against dollar and yen, advancing the news; trading was again wild and nervous first couple of hours, yet Nikkei opening strongly up, pushing along Wall Street futures, was the kick start of a general recovery in European and commodity currencies.

A 720 billion euros package designed to stop Greece issues spreading in all Europe, was added to previous 110 billion one approved for Greece. The stabilization scheme consists of government-backed loan guarantees and bilateral loans worth up to €440 billion provided by euro zone members; a further €60 billion supported by all EU members through expansion of an existing balance of payments facility; and up to €220 billion provided by the IMF.The ECB will also intervene in government bond markets and join the U.S. Federal Reserve and other main central banks in reactivating extra US dollar liquidity facilities.

Is this the end of the problems in Europe? not for me my friends; market’s euphoria seems way to much at the moment, and could be short lived, as lack of detail in the plan, regarding how they will reactivate economy, and fight unemployment in between others, could return to weigth on the hegemonic currency.

Anyway! let’s take a look at technicals, before anything else: here is the link for today’s calendar:

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

Have a great day!