The Advisor Weblog

GBP/USD retesting 1.5885 highs
Best pair to trade now: EUR/USD
Majors’ sentiment for today
Starting the day

Posted: 17 Jan 2011 02:35 AM PST

Pound strong tone persist and despite trading in tight ranges against major rivals, the downside seems pretty much limited for GBP crosses. Against greenback the pair is back heading higher, with indicators gaining some bullish momentum above their midlines, and 20 SMA still strongly bullish below current price. Testing 1.5885 highs, an acceleration here should lead to a quick rally towards 1.5920/30 price zone ahead of the 1.5970 area. Supports now are located at 1.5860, 1.5810 and 1.5770 area.

Best pair to trade now: EUR/USD

Posted: 17 Jan 2011 02:17 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/01/17/02/

Majors’ sentiment for today

Posted: 17 Jan 2011 01:20 AM PST

Majors’ sentiment for today:

Eur/Usd: Slightly Bearish

Gbp/Usd: Neutral

Usd/Chf: Slightly Bullish

Usd/Jpy: Neutral

Eur/Gbp: Bearish

Eur/Jpy: Bearish

Gbp/Jpy: Neutral

Starting the day

Posted: 17 Jan 2011 12:59 AM PST

Hi everyone and welcome to this blog. Week started with a soft tone, with a quiet Asian session, that saw Aussie sliding below 0.9900 and Euro starting a bearish corrective movement, that extends in current European morning. Local share markets are extremely quiet and moving in a tight range, while commodities are slightly lower, barely affecting currency market.

Dollar continues under pressure across the board, except against Euro and Swiss Franc: according to a senior official, the SNB’s ability to take measures to ensure price stability hasn’t been limited by the huge losses it incurred on its foreign currency reserves last year, a way to warn investors they may intervene. Of course, that will only send speculators to push the crosses over the limits, to test the bank determination.

Regarding EUR/USD, the cross is blow 1.3300, correcting the extreme overbought conditions reached past Friday. Still, as long as above 1.3230/50 strong support area, deeps should be understood as corrective. Below this last, bearish trend could return like a vengeance: the sovereign debt woes are still the black cloud over the euro zone future, and while unemployment is still high, inflation is starting to rise whichcould be pretty problematic for the economic recovery; on the positive side, bond auctions continue being successful, giving the currency some air, after reaching 1.2880 early January.

Anyway, here is the link for today’s calendar:

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

Have a great day!