Wednesday, November 10, 2010

The Advisor Weblog

The Advisor Weblog

Indian Rupee and Singapore Dollar

Posted: 10 Nov 2010 01:35 PM PST

Dollar extended its gains this Wednesday, as higher U.S. bond yields prompted traders to cut bets against the greenback, while Euro fell on renewed fears regarding peripheral euro zone countries debts.

EUR/INR continued losing ground yet the drop in U.S. Treasuries following the very soft auction has quickly reversed dollar strength, sending euro back higher against major rivals; pair is mostly unchanged intraday, barely below 61.00 after reaching a fresh 2-month low at 60.45: still bearish in daily charts yet exhausted according to 4 hours one, pair could trigger some bullish corrective movement towards 61.40 area, where 20 SMA should offer some resistance. Candle opening above it should signal a continuation towards 61.70 price zone, followed later by 62.00. Supports for the upcoming hours come at mentioned low, 60.45, followed then by 60.10 price zone.

EUR/SGD reached 1.7620 today, barely above the 50% retracement of the bullish run from 1.6940 to 1.8300; bearish yet overextended, pair needs to accelerate above 1.7780, 38.2% retracement of the same rally, to ease the bearish pressure, and regain 1.7820 area. Lose of mentioned support, should offer a clear 100 pips run to the downside as there no much support in the middle, till 1.7520/30 price zone, September 17th intraday high.

USD/SGD ended the day down after failing to overcome past Tuesday high; 20 SMA in the daily chart is limiting rises so far, holding a strong bearish slope that suggest won’t be easy yet to break; 4 hours indicators had a slightly bullish tone ahead of Asian session thus lacking strength; pair needs to extend gains and accelerate above 1.2922, to gain a firmer bullish tone, that could drive the pair back towards levels above 1.30. Immediate resistances come at mentioned 1.2922, followed by 1.2960 and 1.3000 price zone while supports are now located at 1.2860, 1.2830 and the 1.2800 level.

Best pair to trade now: EUR/USD

Posted: 10 Nov 2010 03:59 AM PST

Majors’ sentiment for today

Posted: 10 Nov 2010 03:54 AM PST

Here is majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Bullish

Usd/Chf: Bullish

Usd/Jpy: Bullish

Eur/Gbp: Bearish

Eur/Jpy: Bullish

Gbp/Jpy: Bullish

Starting the day

Posted: 10 Nov 2010 03:44 AM PST

Hi everyone and welcome back! Market continues the risk aversion rally triggered past American afternoon, after Asian stocks closed to the downside and European ones are firmly lower. Commodities are losing also eraly strength, and dollar is mostly up across the board, except against Pound, favored by BOE comments regarding inflation as they said is likely to fall back toward its 2% target over the two- year forecast period even as policy makers grow more divided on the outlook for prices and economic growth.

Euro surrended to sovereign debt woes, with bond yield spread between Irirsh and German 10 year bill hitting 579 bps earlier today, and the common currency retrating strongly from the 1.3800 area seeking back daily low. We have that 1.3700 area yet to break, to confirm a downside continuation rally towards 1.3500, 50% retacement of the 1.5140/1.1870 rally.

Upcoming US Trade Balance will be the probable trigger today and we could expect stronger movements after the release; here is the link for today's calendar:

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

Have a great day!
Posted by at 6:29 PM

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