The Advisor Weblog

Waiting for US
Next educative session
GBP/USD losing fast
Best pair to trade now: USD/CHF
Eur/Usd, technical view
Majors’ sentiment for today
Starting the day

Posted: 24 May 2010 06:32 AM PDT

Wall Street is set to open slightly lower thus market likely wait for US Existing Home Sales report to define an intraday trend. Report is expected positive, around 5.62M from 5.35 past month. That will likely favor some dollar falls and stocks recovery; a worse than expected number will probably have the opposite effect: stocks down and dollar and yen up. Here is the hourly perspective updated for majors:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2010-05-24.v02.html

Next educative session

Posted: 24 May 2010 05:55 AM PDT

Tomorrow, I will be doing an open webinar about short term trading strategies for volatile markets; here is the link if you want to register

http://www.fxstreet.com/live/sessions/session.aspx?id=7d7c253e-ae65-4136-a3ad-10eff6a52c26

GBP/USD losing fast

Posted: 24 May 2010 03:55 AM PDT

Pound extended the slide from key 1.4520 resistance area, and quotes around 1.4350 zone with 4 hours chart indicators heading south and current candle crossing 20 SMA, supporting further downside slide. Pair has spent past week trapped in between 1.4230/1.4520, and the range remains intact at this point, with 1.4320 as immediate support for the pair, ahead of 1.4280 area and mentioned 1.4230 lows. Resistances now lie at 1.4410, 1.4460 area and 1.4520 intraday high.

Best pair to trade now: USD/CHF

Posted: 24 May 2010 03:45 AM PDT

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-05-24.v02.html

Eur/Usd, technical view

Posted: 24 May 2010 03:11 AM PDT

As comment in the previous post, pair has lost the 1.2500 level that has been acting as strong support on the pair past Friday, and also represents the 38.2% retracement of last daily bearish leg from 1.31/ to 1.2145 yearly low. Losing that area has triggered a strong downside rally, with pair now around 1.2390, and 4 hours indicators heading south supporting further falls, with current candle also opening under 20 SMA. 1.2380 is next support in line, ahead of the 1.2330 area, yet a daily close under 1.2450 strong resistance area, will likely signal past rally to 1.2670 has been just a small correction in the strong bearish trend the pair has. Downside rally is a bit overextended now, we will probably see some consolidation around this area, before further intraday definitions, yet as long as capped under 1.2450, chances are to the downside today.

Majors’ sentiment for today

Posted: 24 May 2010 02:56 AM PDT

Majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Slightly Bullish

Usd/Chf: Bullish

Usd/Jpy: Neutral

Eur/Gbp: Bearish

Eur/Jpy: Bearish

Gbp/Jpy: Neutral

Starting the day

Posted: 24 May 2010 02:53 AM PDT

Good Monday all! Holiday in half Europe, Euro is falling heavily across the board, after losing 1.2500 level, 38.2% retracement of last daily fall from 1.31/1.2150, approaching to 1.2400 area against dollar, as the currency remains extremely vulnerable; having lost 1.2450 key area, pair is back under pressure, and 1,2380 area is next in line.

Pound reached key 1.4520 resistance area, retreating strongly from the midterm strong zone, still holding its bullish tone, as above 1.4410 support. Wide moves and position adjustment according to market sentiment however, remains as the main condition despite the holiday, so stay tuned!

Here is the link for today’s calendar:

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

Have a great day!