Tuesday, November 16, 2010

The Advisor Weblog

The Advisor Weblog

Indian Rupee and Singapore Dollar

Posted: 16 Nov 2010 02:44 PM PST

Several risk factors that include intensified European sovereign debt woes, generated a strong risk aversion sentiment that sent commodities and stocks strongly lower today, giving a boost to the greenback and smashing the common currency.

EUR/SGD has extend the slide to past week low around 1.7533, where the pair is founding strong support; however, indicators remain strongly bearish according to 4 hours chart, with 20 SMA losing strength yet still above current price. Bias remains then to the downside, although a break below mentioned level is needed to see a stronger fall in the cross: below 1.7533, next supports for current session come at 1.7500 and 1.7455, 61.8% retracement of last daily bullish rally from 1.6940 to 1.8300; daily close below this last, should signal stronger falls for the upcoming weeks, heading towards the 1.70 price zone. Resistances now, come at 1.7565, 1.7620 (50% retracement of the same rally) and 1.7650 price zone.

EUR/INR trades early Asia around 61.20, having reached an intraday high at 61.60 same level as Monday, showing a long upper shadow in the daily candle: that suggest sellers will probably gathered around that level, barely above daily 20 SMA. 4 hours chart shows indicators slightly bullish, with momentum bouncing up from its midline, and 20 SMA holding some strength and acting as dynamic support below current price; pair should then trade mostly inside the 61.10/60 range; accelerations above 61.60 should signal a retest of the 61.20 price zone, while below 61.10, support is located at 60.80: only below this last we could see a stronger downside momentum, with next supports at 60.40 and 60.00.

Best pair to trade now: EUR/USD

Posted: 16 Nov 2010 04:31 AM PST

Majors’ sentiment for today

Posted: 16 Nov 2010 03:59 AM PST

Here is majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Bearish

Usd/Chf: Slightly Bullish

Usd/Jpy: Bullish

Eur/Gbp: Bullish

Eur/Jpy: Neutral

Gbp/Jpy: Bearish

Starting the day

Posted: 16 Nov 2010 03:56 AM PST

Hi everyone and welcome back! Dollar continues extending gains this Tuesday, as commodities and stocks fall sharply across the world, with CAD and AUD leading the way.

Pound is losing 1.6000 level, despite CPI increased again to 3.2% in October; this comes after the Bank warned in its quarterly forecast last week that CPI could reach more than 3.5% , with expectations of inflation ‘to remain above target’; in the long run, that should mean a rate hike, so don’t be so confident on Pound bearish. Euro bearish trend on contrary, seems pretty well defined as the cross continues pushing lower, aiming to test the 1.3500 level. Watch also USD/JPY as above 83.40, we could see a strong acceleration towards 84.00.

We have several fundamental reports in the US today, that can trigger interesting movements across the board, so here is the link for today's calendar:

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

Have a great day!
Posted by at 6:33 PM

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