Friday, January 14, 2011

The Advisor Weblog

The Advisor Weblog

Hourly perspective for US session

Posted: 14 Jan 2011 06:50 AM PST

GBP/USD midterm view

Posted: 14 Jan 2011 03:03 AM PST

Pound has triggered a midterm bullish continuation trend, after breaking the daily triangle as seen on this chart:

The continuation figure has a 950 pips height, so according to the theory, price should now continue rising, targeting 1.6550 price zone, approx. Of course won’t be a straight rally and there are chances of a reversal, as nothing is 100% sure in forex. The bullish momentum remains firm yet CCI reaching and retreating from 200 level could signal at least some consolidation at current levels, before further gains are seen. Immediate resistance comes at 1.5910 price zone, so technical confirmations above this last, even better a daily close today above it, should be a good sign of further gains in the days to come. I would say, key support area now is the 1.5730/70 price zone: daily close below could put in danger that trend, and send the pair lower near 1.5600 price zone. 

Best pair to trade now:EUR/USD

Posted: 14 Jan 2011 02:34 AM PST

EUR/USD Technical perspective

Posted: 14 Jan 2011 01:37 AM PST

I was pretty bearish in the euro, since the month began and I was certainly not expecting the past 2 days gains. Technically, the pair has completely reversed the bearish trend after breaking yesterday above the 61.8% retracement of the last daily fall, also 200 EMA around 1.3216 yesterday; the candle in the 4 hours chart shows increasing volume, supporting further gains in the cross. As comment at the beginning, short covering, along with stops tripped, had exacerbated the rally, and with European stocks positive, more support is finding the common currency.

Now around 1.3395 and having reached 1.3456, 4 week high, the pair reached extreme overbought conditions, losing momentum according to this 4 hours chart. However, price holds above yesterday’s high around 1.3380, immediate support for the cross. Corrective movements, once below, could extend towards 1.3290/1.3300 price zone, and even further, towards 1.3220 without harming the bullish trend. Candle opening above 1.3430, should favor a continuation rally towards the 1.3500 price zone, December 14th highs and probable top for today.

 

 

Majors’ sentiment for today

Posted: 13 Jan 2011 11:33 PM PST

Majors’ sentiment for today:

Eur/Usd: Slightly Bullish

Gbp/Usd: Bullish

Usd/Chf: Slightly Bearish

Usd/Jpy: Bearish

Eur/Gbp: Bullish

Eur/Jpy: Bullish

Gbp/Jpy: Slightly Bearish

Starting the day at FXstreet offices

Posted: 13 Jan 2011 11:25 PM PST

Hi everyone and welcome to this blog! Missed all the action yesterday, as was flying to Spain. Euro surge  near 1.3400, after solid Spanish and Portuguese debt auctions followed later by Jean Claude Trichet,head of the European Central Bank expressed concerns about inflation, pushing investors to cover short positions. US unemployment claims that rose to 445K, did not helped greenback, that was down across the board, although only Euro managed to soar beyond expectations.  Wall Street closed near 2 years high  set earlier this week, despite the poor intraday performance, and start the Friday in a shy positive mood.

Pound as expected, continue gaining after the break of the daily triangle, and consolidates recent gains around 1.5850 price zone, while aiming for further gains. Technically speaking both European currencies, had good chance of continuing climbing over the next few days.

Today there is plenty of US data, wondering if dollar pressure could reverse then; here is the link for today’s calendar:

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

Have a great day!

 
Posted by at 5:19 PM

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