The Advisor Weblog

Starting the Asian session
Best pair to trade now: EUR/USD
Majors’ sentiment for today
Starting the day

Posted: 06 Jan 2011 01:48 PM PST

Another day, another dollar gain; despite data was limited in the US with unemployment claims above expectations reaching 409K still well below last month’s readings, the fact is that news where extremely disappointing both in the UK and Europe.

While UK Services PMI contracted to a 20 months low posting 49.7, retail sales in the euro zone come out quite negative in their monthly reading, at -0.8%; bond spreads again widened for Spain and Portugal, accelerating dollar gains, will both gold and oil had been under heavy pressure again, with oil closing the day around 88.30 and gold barely above $ 1372/oz.

Ahead of US Nonfarm Payrolls that had high expectations already among investors, Asian markets will likely remain cautious, with majors following past sessions’ trend.

USD/SGD quotes around 1.2943, with a slightly bullish tone in 4 hours chart, as price develops above a strongly bullish 20 SMA yet momentum is turning back lower. In the same time frame, is clear pair is moving inside an ascendant channel, that should lead for further dollar gains, as long as above the base, currently around 1.2890 price zone. Pair will find support first around 1.2910, and then in the mentioned base. Break of 1.2890 area, also 20 SMA, should signal a deeper bearish movement, heading towards the 1.2830 price zone. Resistances, form current level, are located at 1.2965 intraday high, and the 1.2980 area, roof of the channel; technical confirmations above this last, should trigger a bullish acceleration movement towards 1.3010 price zone, ahead of stronger 1.3070 level.

USD/HDK continues falling despite dollar gains against major rivals, with the pair falling to 7.7709, testing the 20 SMA in the 4 hours chart, and quoting barely above the level; momentum remains bearish, with the cross heading towards 7.7665, past Monday low; below this last, 7.7630 area is next support, as it represents the 61.8% retracement of the daily rally from 7.7497 to 7.7845. Resistances, for the upcoming hours, lie at 7.7730, 7.7745 and 7.7770 price zone.

Best pair to trade now: EUR/USD

Posted: 06 Jan 2011 03:02 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/01/06/02/

Majors’ sentiment for today

Posted: 06 Jan 2011 02:18 AM PST

Majors’ sentiment for today:

Eur/Usd: Bearish

Gbp/Usd: Bearish

Usd/Chf: Slightly Bullish

Usd/Jpy: Slightly Bullish

Eur/Gbp: Bullish

Eur/Jpy: Slightly Bullish

Gbp/Jpy: Bearish

Starting the day

Posted: 06 Jan 2011 02:15 AM PST

Hi everyone and welcome back. Asian session has been pretty quiet after past Wednesday dollar gains, triggered by up beating ADP readings. non Manufacturing PMI also come out much better than expected, and while stocks rose, commodities plunged, the perfect environment for dollar gains.

Early Europe, Services PMI in the UK fell below 50.0 contracting to 49.7, weakest in over 20 months: Pound fell against dollar currently around 1.5470, barely above the key support 1.5440/50 area.

Euro zone Retail Sales also come out negative, suggesting dollar will find even more buyers against its European rivals. Later today, US unemployment weekly claims that past week show a quite positive reading, are expected to give further clues on tomorrow’s US Nonfarm Payrolls data: any reading below the expected 400K should be considered strongly dollar positive.

Here is the link for today's calendar:

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

Have a great day!