Thursday, November 4, 2010

The Advisor Weblog

The Advisor Weblog

Indian Rupee and Singapore Dollar

Posted: 04 Nov 2010 02:12 PM PDT

Dollar slide extended this Thursday, with Wall Street reaching yearly highs and gold setting a fresh all time high at $ 1339.35, sending USD/SGD to 1.2802 fresh record low; as comment on previous update, the bearish tone persist yet indicators are losing momentum to the downside giving first signs of exhaustion; still 20 SMA remains strongly bearish above current price, suggesting the upside will remain limited in the upcoming Asian session. Below 1.2800, projected supports come at 1.2750 and 1.2700 psychological area. Resistances now, lie at 1.2830, 1.2860 and the 1.2900 price zone.

USD/INR has lost the 44.00 level, lower in range as dollar weakness weights across the board. Currently around 43.90, 4 hours indicators had turned south, giving the pair a stronger bearish tone, while 20 SMA should keep the upside limited around 44.10; if above, next resistance comes at 44.40 area, followed later by 44.65. Daily low near 43.80 area comes as immediate support ahead of 43.40 price zone.

EUR/SGD retested past month high around 1.8300 after ECB meeting, reaching 1.8300 price zone and forming a probable double roof at the area, yet neck line is quite far down right now, to consider, around 1.7900 price zone. 4 hours indicators seem exhausted at the top, thus price is developing above a still bullish 20 SMA that should keep downside corrections limited. Currently at 1.8197, the pair needs to overcome 1.8225 to extend gains towards mentioned 1.8300 area. Once above, 1.8360 is next probable target for the pair.

Best pair to trade now: EUR/USD

Posted: 04 Nov 2010 03:51 AM PDT

Majors’ sentiment for today

Posted: 04 Nov 2010 02:47 AM PDT

Here is majors’ sentiment for today:

Eur/Usd: Bullish

Gbp/Usd: Bullish

Usd/Chf: Bearish

Usd/Jpy: Bearish

Eur/Gbp: Bullish

Eur/Jpy: Bullish

Gbp/Jpy: Bullish

Starting the day

Posted: 04 Nov 2010 02:45 AM PDT

Hi everyone and welcome back! Dollar sell off continues after past Wednesday FOMC decision, with EUR/USD testing 1.4250 price zone, as discussed past Asian session in the Daily Wrap up webinar, while USD/CHF resumed its bearish trend testing now 0.9660, the 61.8% retracement of the daily rise from 0.9460 to 0.9970. Commodity currencies remain to be the overall winners, with AUD/USD nearing 1.0100, levels not seen since July 1982.

From the fundamental point of view, news are pretty dollar negative, and greenback will probably extend its fall over the coming days; however we have ECB, BOE and Payrolls in the US tomorrow, so would love to see how majors close before making long term statements.

Regarding ECB, market attention will focus on any comment regarding “exit strategy” if the Bank decides to start removing facilities, then that should be Euro supportive, and the common currency will probably extend its’ rise today. When it comes to BOE the risk factor is an extension of the asset purchase facility; chances are low, but that could weight on Pound. Anyway! market is quite interesting so no more talking; here is the link for today’s calendar and let’s take a look at technicals:

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

Have a great day!
Posted by at 6:06 PM

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