The Advisor Weblog

EUR/USD bullish continuation
Best pair to trade now: GBP/USD
Starting a clear day

Posted: 22 Feb 2011 04:37 AM PST

EUR/USD 4 hours chart shows the cross, has dipped to 1.3525, where it founded a double support: the 200 EMA, and a short term ascendant trend line, soaring back to current levels on ECB’s Mersch hawkish comments, and stocks recovery. In this 4 hours chart, the pair has formed a “V” with the neckline around strong 1.3685 resistance area; this formation usually suggest a bullish continuation rally if that neck is broken, that should repeat the height of the figure, @ 150 pips, targeting then, the 1.3830/40 area. Indicators are back heading north, supporting the bias, while the cross is slightly overextended due to recent spike in smaller time frames; there is a chance to see some consolidation at current levels before a continuation rally, yet as long as above 1.3660 now, pair seems set to extend gains.

Best pair to trade now: GBP/USD

Posted: 22 Feb 2011 04:24 AM PST

Here is my first choice for today:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/02/22/

Starting a clear day

Posted: 22 Feb 2011 04:19 AM PST

Hi all and welcome! I had to clean up my computers yesterday, as my system crashed after waking up; has just finished all, and hopefully, will be on the run today. After Nikkei opening during past Asian session, a 6.3-magnitude earthquake ripped through Christchurch, New Zealand, afternoon, causing multiple fatalities and destroying half the city; risk aversion followed across the markets, and stocks sunk while dollar rose strongly against major rivals.

However, European opening has changed the picture, with stocks back near the opening after erasing early losses; ECB’s Mersch hawkish comments regarding inflation and low rates in the euro zone, sent EUR/USD back to daily opening around 1.3680, with the cross erasing all it’s loses, and ready to retest the 1.3715 area; once above 1.3745 comes next. Seems investors are still willing to get rid of their dollars quick.

Here is the link for todays' calendar:

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

Have a great day!