Monday, November 22, 2010

The Advisor Weblog

The Advisor Weblog

Indian Rupee and Singapore Dollar

Posted: 22 Nov 2010 03:46 PM PST

Euro reversed past strong Asian opening, closing the day down against major rivals, after the Irish Prime Minister pledged to call an election next year if a crucial budget package, is approved next December 7th. Despite Ireland does not need the cash yet, the political crisis triggered today will probably end with current government, along with euro’s health.
EUR/INR quotes around 61.70, after finding support in the daily 20 SMA around 61.53 immediate support for the upcoming hours. 4 hours chart holds a slightly bearish tone that needs yet to be confirmed if the pair manages to firmly accelerate below mentioned level. Next supports today come at 61.20, and 60.80, while resistances above 62.00 are placed at 62.30 and the 62.70 price zone, not seen at this point.

EUR/SGD bearish momentum seems more strong right now, with the cross barely above 1.7620, capped below a flat 20 SMA in the 4 hours chart: momentum is slightly lower, still above it’s midline, while Monday low comes around mentioned 1.7620; lose of this last, should favor a bearish continuation rally towards 1.7565 first, and 1.5730 later, past week low. To the upside, pair needs at least to accelerate above 1.7670/80 price zone, to recover previous bullish momentum, and extend towards 1.7710 and 1.7780 Fibonacci resistance zone.

 

Funny Maths

Posted: 22 Nov 2010 01:54 PM PST

I need a bit help out here, as I’m not 100 % sure of the numbers in the first column, as in Spanish are even more different; anyway, as far as I understood,1 US BILLION looks like this: 1,000,000,000 (9 zeros) while 1 EU BILLION, looks like this: 1,000,000,000,000 (12 zeros)

So FED QE round II was of 600B, meaning                      600,000,000,000

ECB bond purchases up to date, of troubled

economies is of 66B, meaning                                  66,000,000,000,000

So! If I’m not wrong in those numbers… are you still willing to buy Euros?

Hourly perspective for US session

Posted: 22 Nov 2010 06:43 AM PST

EUR/USD: capped below 1.3770

Posted: 22 Nov 2010 03:52 AM PST

Despite strong weekly opening, pair has remained capped below the 1.3770 area, 38.2% retracement of the last bearish run from 1.4280 to 1.3440. Last bullish leg then, still seems corrective; 4 hours chart shows indicators turning south, and price struggling around 200 EMA, while aiming to fill the opening gap left around 1.3670; next support, below this last, comes at the 1.3630 area, followed then by 1.3580 price zone. A clear acceleration, technical confirmation or candle opening above 1.3780 is needed to see the pair regaining the upside, and extend towards the 1.3420/40 price zone.

From the fundamental side, risk factor is next Tuesday FOMC Minutes, as market expects the FED to downgrade growth expectations.

Majors’ sentiment for today

Posted: 22 Nov 2010 03:45 AM PST

Here is majors’ sentiment for today:

Eur/Usd: Slightly Bearish

Gbp/Usd: Bearish

Usd/Chf: Bullish

Usd/Jpy: Neutral

Eur/Gbp:Bearish

Eur/Jpy: Bearish

Gbp/Jpy: Neutral 

Best pair to trade now: GBP/USD

Posted: 22 Nov 2010 03:36 AM PST

Starting the day

Posted: 22 Nov 2010 03:35 AM PST

Hi everyone and welcome back! Hope you enjoyed your weekend and are ready for more forex ;) . Week opened with sentiment high, as Ireland applied for a bailout, becoming the second euro member after Greece, to seek a rescue from the EU and the IMF. Gold and oil opened higher, with stocks futures also up, and even the UK has offered help to Ireland amid growing fears that the country’s imperiled economy will drag Britain and the rest of Europe back into recession.

Dollar was under pressure most of Asian session, and early Europe, but sentiment seems fading right now, and greenback is regaining some ground across the board, aiming to fill some weekly opening gaps, amid galling stocks across the world.

I was thinking past Asian opening, how a bailout could of a second country could turn Euro stronger; maybe in the short term, yes. But before investing in the common currency, won’t you be wondering  which one will be the next? Portugal? Spain? Greece rescheduling debt? I don’t know you, but me, as said past week, I’m not comfortable buying Euros.

Anyway! quiet day ahead from the fundamental side, as we only have a speech from Trichet; here is the link for today’s calendar:

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

Have a great day!
Posted by at 5:31 PM

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)