The Advisor Weblog

USD/SGD and USD/HDK
Dollar getting smashed
Best pair to trade now: EUR/USD
Majors’ sentiment for today
Starting the week

Posted: 13 Dec 2010 01:29 PM PST

Wild Monday as not seen for long, with Dollar down and Euro up strongly, as after strong rises over the past few days, lower US yields helped undermine greenback, as well as rising stocks and commodities that had been rising most of the day, although giving up recent gains by early Asia, still positive intraday.

USD/SGD quotes barely above daily low just posted at 1.3024, and with a strongly bearish tone in daily chart; 4 hours indicators however, look a bit exhausted to the downside, suggesting some short lived bullish corrective movement ahead. Such movement could reach 1.3080 area, where a strongly bearish 20 SMA should keep the upside limited. Lose of the 1.3000 psychological support, could trigger another round of sell off in the cross, towards 1.2950 first, and 1.2915 later on the day. Resistance now are located at 1.3050, mentioned 1.3080 and the 1.3110 price zone.

USD/HDK continued extending past week gains, reaching 7.7787 daily high, yet the cross is showing some bearish divergences in the 4 hours chart as momentum heads south despite price holds near fresh 3-month high afore mentioned. Resistances above mentioned high are located at 7.7808, past July monthly high, followed then by 7.7865 price zone. Supports, in case of corrections, are located at 7.7755, 7.7720 and the 7.7690 price zone.

Dollar getting smashed

Posted: 13 Dec 2010 04:11 AM PST

Dollar is getting smashed across the board, and despite my rush, I can’ t find much of a reason to this movement, beyond the optmism that supports stocks and commodities to the upside. Euro will find strong resistance in the 1.3300/10 area, while Pound needs to regain 1.5770 to turn intraday bullish. AUD/USD, could extend gains just above 0.9920.

Best pair to trade now: EUR/USD

Posted: 13 Dec 2010 03:52 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2010/12/13/

Majors’ sentiment for today

Posted: 13 Dec 2010 03:45 AM PST

Majors’ sentiment for today:

Eur/Usd: Slightly Bullish

Gbp/Usd: Slightly Bearish

Usd/Chf: Bearish

Usd/Jpy: Slightly Bullish

Eur/Gbp: Bullish

Eur/Jpy: Slightly Bullish

Gbp/Jpy: Bearish

Starting the week

Posted: 13 Dec 2010 03:39 AM PST

Hi everyone and welcome back! Week starts with markets in a good mood, stocks running back higher, commodities regaining the ground lost early Asia, and dollar down across the board. I was honestly don’t expecting this huge slide in Pound, yet was both, technically and fundamentally triggered early Europe:

Technically, the cross broke the ascendant trend line coming from 1.55 early December, triggering stops and extending towards 1.5720 area, next support in the short term view. From the fundamental side, BOE study, warning that banks are restricting access to credit and threatening to dampen recovery, no doubts jeopardized Pound strength.

Still, and despite the positive sentiment, majors are still in past day’s range, lacking trend definitions. Euro is near a key resistance level, that I will post right away.

Here is the link for today's calendar:

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

Have a great day!