The Advisor Weblog

Indian Rupee, Singapure Dollar and Hong Kong Dollar
Beware of gold!
EUR/USD gives up 1.3000
Best pair to trade now: USD/CHF
Majors’ sentiment for today
Starting the day

Indian Rupee, Singapure Dollar and Hong Kong Dollar

Posted: 30 Nov 2010 01:40 PM PST

Tuesday again saw market trading on contagion fears in the euro zone; bond spread yields between Germany and Ireland reached yet again record highs, while rumors about S&P going to review France ratting and actually put Portugal on credit watch negative, have kept the common currency under pressure since early Europe. Dollar continues gaining due to its safe haven status, although fundamental data in the US continues improving: both Chicago PMI and CB Consumer Confidence beat expectations coming at 63.5 and 54.1. Finally stocks ended the day pretty negative, both in Europe and America, yet off daily lows.

EUR/INR extended its slide to a fresh 2 months low at 59.30 price zone, where the cross is actually closing the day. Strongly bearish in daily charts, 4 hours indicators show the pair reaching extreme oversold conditions, yet with no signs of reversing; momentum continues heading south while 20 SMA above current price holds a strong bearish slope. Below 59.30 mentioned daily low, pair will find supports around 59.00 and 58.30, past September 10th strong daily low. Immediate resistance comes around 69.80 static price zone, and above corrections could extend towards 60.20, where the 20 SMA lies. Above this last, not seen at this point, rally could extend towards 60.40/60 price zone.

USD/HKD extended gains to 7.7690 yet closing the day below key 7.7659 October high. 4 hours chart shows momentum heading south quite vertical, approaching to the 100 level yet 20 SMA lies around 7.7640 holding a strong slope while 38.2% retracement of daily rise from 7.7524 to 7.7690 is located around 7.7630, so only below this last, the bearish movement could get stronger, with next supports at 7.7600 (50% retracement of the same rally) and 7.7565. Above 7.7660, resistances come at 7.7690 and 7.7730.

EUR/SGD strong bearish momentum pushed the cross to 1.7105, quoting right now barely above that level. As almost all euro crosses, the bearish momentum remains intact in 4 hours chart, despite the extreme oversold reading RSI shows; below daily low, immediate supports come at 1.7050/60 price zone, followed by 1.7010 while corrections could take place only above 1.7150, towards the 1.7220 price zone.

Beware of gold!

Posted: 30 Nov 2010 05:38 AM PST

With all the dollar run across the board, keep an eye on gold:the metal, safe haven by excellence on turmoil times, is above $ 1385/oz. With dollar overbought and gold so high, we could see some corrective reversals in the next minutes.

EUR/USD gives up 1.3000

Posted: 30 Nov 2010 05:34 AM PST

While Stocks continue to slump and US futures sink to fresh monthtly lows, EUR/USD is breaching the 1.3000 level; Canadian GDP come out negative and below expectations, favoring furhter dollar gains across the board, and EUR/USD now quotes around 1.2970; lose of 1.2955, should trigger a bearish continuation rally towards the 1.2920 strong static support zone.

Best pair to trade now: USD/CHF

Posted: 30 Nov 2010 05:04 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010/11/30/02/

Majors’ sentiment for today

Posted: 30 Nov 2010 04:58 AM PST

Majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Neutral

Usd/Chf: Slightly Bearish

Usd/Jpy: Slightly Bearish

Eur/Gbp: Bearish

Eur/Jpy: Bearish

Gbp/Jpy: Bearish

Starting the day

Posted: 30 Nov 2010 04:55 AM PST

Hi everyone and welcome to this blog! Starting the day late, as I do have an early webinar, and the flu is refusing to leave me since past Wednesday, one full week sleepy mood…oh well! Anyway enjoying my job, i was not made to stay in bed sick . Market continues to be ruled by risk aversion and dollar gains, particularly against Euro and Aussie, as we have seen these past few days. EUR/USD below daily low main target continues to be 1.2920 price zone, while AUD is quite close to a short term double floor around 0.9565; lose of this last should signal further falls there. Pound continues range bound and delayed compared to the others; below 1.5510, should turn more interesting.