The Advisor Weblog

Hourly perspective for US session
Not discussing the trend, but…
Best pair to trade now: EUR/USD
Majors’ sentiment for today
Starting the day

Hourly perspective for US session

Posted: 29 Sep 2010 06:45 AM PDT

Here is the hourly perspective updated for the US session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2010-09-29.v02.html

Not discussing the trend, but…

Posted: 29 Sep 2010 04:06 AM PDT

I’m not making this post to discuss or deny, Euro bullish trend. It’s just a number of facts that sooner or later, should weight on the common currency. We could get to 1.45, 1.50 or whatever level you can imagine before things change; however, would be good to be aware of this things, taking place in the European peripheral countries:

On Thursday, the Irish government will present plans for dealing with the Anglo-Irish bank; the state-owned bank, announced early this month, a stunning loss of €8.2bn loss in H1 2010. The Minister for Finance Brian Lenihan said also early this month, that the bank is to be spilt into a Funding Bank for deposits and an Asset Recovery Bank to recover loans. Let’s remind that just yesterday, the Irish bond yields surged higher, rising to a record 6.72% on 10-year debt.

Portugal, one of the most fragile countries in the euro zone, is not far away from that situation: Minister of Finance Fernando Teixeira dos Santos’ said that the country must stick to its deficit reduction targets for 2010, and this will not be possible without additional tax revenues. Taxes hit consumption, and so, growth. Portugal has so far failed to rein in the central government deficit; and of course bond yields keep widening.

Meanwhile today, Spain faces travel chaos and mass protests in its first general strike in eight years amid anger over austerity measures imposed by the Spanish government; those measures, include lowering civil servants pay and freezing pensions.

Yet the Euro holds above 1.3600, 5-month high, and heading higher. I have a couple of ideas why this is happening, still talking to much about euro zone woes right now, seems almost stupid. Market won’t care about this; QE is the focus, and nothing else

Best pair to trade now: EUR/USD

Posted: 29 Sep 2010 03:00 AM PDT

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-09-29.html

Majors’ sentiment for today

Posted: 29 Sep 2010 01:38 AM PDT

Here is the majors’ sentiment for today:

Eur/Usd: Bullish

Gbp/Usd: Slightly Bearish

Usd/Chf: Neutral

Usd/Jpy: Bearish

Eur/Gbp: Bullish

Eur/Jpy: Slightly Bearish

Gbp/Jpy: Bearish

Starting the day

Posted: 29 Sep 2010 01:10 AM PDT

Hi everyone and welcome back! Following a consolidate stage during Asian session, Europe opening is sending dollar to fresh lows against major rivals, as the trend, and the market sentiment, remain intact. Dollar is bearish, and that’s it. Despite whatever is going on in other major economies, at this point investors need no reason to sell dollars; trying to find a reversal point in this rallies, even against the yen, hoping for BOJ intervention, is almost suicide. Waiting for pullbacks to get better entry points seems to be the wisest idea of short term trading at this point. For the past couple of weeks, corrective movements against this trend had been quite limited, so I do believe that a more interesting corrective movement is not far away. Anyway, as said, will be just corrective, as trend is pretty much clear at this point.

We have the first round of data, coming in a few minutes, in the UK, so here is the link for today’s calendar:

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

Have a great day!