The Advisor Weblog

EUR/USD soars on rate hikes talk
Best pair to trade now: EUR/USD
Starting the day

Posted: 18 Feb 2011 05:05 AM PST

EUR/USD soared 80 pips in a few minutes, as ECB’s Smaghi talks about raising rates. The cross is back above 1.3600, reaching 1.6220/30 congestion zone. If the rally extends, 1.3660 and 1.3710 comes next.

Best pair to trade now: EUR/USD

Posted: 18 Feb 2011 04:10 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/02/18/02/

Starting the day

Posted: 18 Feb 2011 03:41 AM PST

Hi everyone and welcome back. Following another extremely quiet Asian session, European opening as usual print some movement to charts; Pound found support to extend gains on rumours next week BOE’s Minutes will be more hawkish than usual, meaning a soon rate hike in the UK. Better than expected Retail Sales that reached 1.9% monthly basis against an expected 0.6%, with GBP/USD reaching 1.6230; next strong resistance area there comes at 1.6280, monthly high.

EUR/USD on contrary, failed to break above the descendant trend line around 1.3620, and is back under pressure approaching to 1.3535 support, yesterday’s low. Still not much of a downside pressure is seen on the cross, that remains technically flat.

Stocks are slightly lower, commodities slightly higher, and the lack of volume is notorious for a Friday, although this is what we have today. Except for Pound strength, I’m not seeing much more right now.

We have some news in Canada, and speaches from BOE and FED memebers, so here is the link for todays’ calendar:

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

Have a great day!