The Advisor Weblog

Posted: 24 Jan 2011 01:32 PM PST

Week started with no much of a change: dollar remains week, and gains of the greenback are limited to corrections, while Euro continues been bought against major rivals, supported by ECB’s president Jean-Claude Trichet comments past Sunday about inflation pressures. In an interview, Trichet said core inflation was not a good gauge of future price pressures and that the central bank was ensuring higher energy prices do not seep into other prices. Also, better than expected development in Ireland financial woes gave the common currency the strength to reach a fres 2-month high around 1.3685.

USD/SGD quotes around 1.2800, near the record low set past week at 1.2774, immediate support for the cross; 4 hours chart, shows price developing below a flat 20 SMA, around 1.3845, that has been capping the upside since past Friday, so only above that zone, the pair could attempt a short term recovery towards the 1.2880/1.2900 area. Above this last, next resistance comes at 1.2920, past week high. Lose of 1.2770, should signal a bearish continuation rally towards 1.2740, and 1.2700, projected supports for current Asian session.

USD/HKD rose to 7.7980, 7-month high this Monday on fears local authorities had lost control over the economy. Inflation remains a key concern for investors, households and many businesses, and with past quarter reading on growth, the currency continues losing its attractive; the cross is overbought according to 4 hours chart, yet momentum gives no signs of giving up, still heading north, as well as 20 SMA below current price. For current session, supports lie at 0.7950, 0.7915 and 0.7870, while above 7.7980, resistances are at 7.8030 and 7.8058, June 2010 monthly high.

Starting the day

Posted: 24 Jan 2011 04:27 AM PST

Hi everyone, and welcome back! week started mostly with dollar exhausted to the downside, entering a very shy correction mode against both Pound and Euro; with stocks and comodities also down, Swiss Franc and Yen are however, holding recent gains: USD/CHF quotes below 0.9600, while USD/JPY is still limited below 83.00.

EUR/USD nears daily low around 1.3540, yet showing no real bearish strength, while Pound could turn a bit more bearish, only below 1.5910 price zone. Here is the technical update for GBP/USD:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/01/24/

Today, we have no fundamental data to take care of, so seems more a technical day; stocks and commodities, will set market’s mood.

Have a great day!