The Advisor Weblog

Indian Rupee and Singapore Dollar
Hourly perspective for US session
EUR/USD: More downside yet to come
Best pair to trade now:GBP/USD
Majors’ sentiment for today
Starting the day

Posted: 17 Nov 2010 03:53 PM PST

Dollar was softer this Wednesday, after quite disappointing US data hit the wires: Housing Starts fell 11.7% while core inflation reading reached record lows. However, most majors traded inside past Tuesday range, with Euro still weak on sovereign debt woes. Gold spent most of the journey trading lower, yet managed to close intraday positive; Wall Street on contrary, turned into red late US session, keeping the ranges even tighter.

Dollar lost ground against SGD, with the pair hovering around 1.3000 at the time of writing and daily indicators showing exhaustion to the upside. 4 hours chart shows indicators bearish, with current candle opening below 20 SMA, acting as dynamic resistance around 1.3020. Recovery above this last should favor some upside continuation rally in the pair, towards 1.3060/70 area, past day’s high, followed then, by 1.3100 level. Below 1.2970, supports come at 1.2922 and 1.2860.

EUR/SGD posted limited gains this Wednesday currently quoting around 1.7600, still below key 1.7620 area (50% retracement of the 1.6940/1.8300 rally); 4 hours chart show a slightly bullish tone suggesting accelerations above that level, should signal, further gains towards 1.7650 first and the 1.7710 area then. Supports now, are located at 1.7565, 1.7530 and 1.7500 price zone.

Hourly perspective for US session

Posted: 17 Nov 2010 06:40 AM PST

Here is the hourly perspective updated for the US session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2010-11-17.v03.html

EUR/USD: More downside yet to come

Posted: 17 Nov 2010 03:49 AM PST

Seeing the 4 hours charts, we can notice the pair has been trapped in between 1.3460 and 1.3520 since past American session, unable to open a candle above the strong Fibonacci resistance area, that continues to act as strong resistance level for the cross. Despite RSI is saturating around the 30 level, the bias remains strongly bearish in the cross, supported by technicals, and market sentiment: the 20 SMA above current price holds a strong bearish slope, and acted several times already as dynamic resistance zone. Falling slowly over the past couple of hours, I’m keeping an eye on gold that quotes around $ 1334, with yesterdays’ low at 1329; if this last gives up, will probably exacerbate dollar gains, and being euro the weakest currency across the board, will probably fall much strongly. We have now some short term support @ 1.3470, so below this, 1.3440 and 1.3390 area are next. Resistances lie at 1.3525 daily high, and the 1.3250/60 area.

Best pair to trade now:GBP/USD

Posted: 17 Nov 2010 02:35 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010-11-17.v02.html

Majors’ sentiment for today

Posted: 17 Nov 2010 02:00 AM PST

Here is majors’ sentiment for today:Eur/Usd: Bearish

Gbp/Usd: Slightly Bullish

Usd/Chf: Slightly Bearish

Usd/Jpy: Bullish

Eur/Gbp: Bearish

Eur/Jpy: Bullish

Gbp/Jpy: Bullish

Starting the day

Posted: 17 Nov 2010 01:55 AM PST

Hi everyone and welcome back. While a month ago, everything was just FED and QE, now its all about Ireland. The euro zone finance ministers agreed to bail out Ireland’s banking sector with the IMF yesterday, yet Dublin has to decide whether to request the aid. Anyway, the overall benefited has been greenback, buoyed across the board, helped by DXY that rose to a 2 months high. Commodities and stocks lost momentum, falling sharply and fueling dollar rally, while latest Asian session was completely uneventful leaving majors consolidating in tight ranges.

European morning bring is bringing some corrections, as stocks are slightly higher, and commodities off lows, still under pressure. Majors are aiming for some recoveries agaisnt greenback, yet euro remains pressured, so beware of its weakness. We are not still interested in buying the common currency .