The Advisor Weblog

Oil soars, dollar sunks
EUR/USD break higher still quite possible
Corrections are not trend changes

Posted: 02 May 2011 07:36 AM PDT

US opening has been the wake up call for the Forex market, with oil above $ 114 per barel, gold at daily high near $ 1564,and dollar strongly down across the board: EUR/USD is testing 1.4880 highs, ready to break while AUD/USD momentum push the pair back towards 1.1000. USD/CHF quotes barely 10 pips above the record low set at 0.8625. Trends against dollar particularly in this crosses, seems to have no end.

GBP/USD is still limited below 1.6700, moving in slowmo to the upside, soported by market sentiment rather than self strength.

If you want to see the key levels for major crosses, check the hourly update for the US session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/05/02/

EUR/USD break higher still quite possible

Posted: 02 May 2011 04:00 AM PDT

A break higher in EUR/USD seems quite posible still and despite the market has not much volume today. Watch the chart, the consolidative range in between 1.4770/1.4880, with the 20 SMA holding its strength and helping get the downside limited:

For more details on the possible intraday movements, you can check this report:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/05/02/

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Corrections are not trend changes

Posted: 02 May 2011 03:43 AM PDT

Hi everyone and welcome to another week in the forex market. Quite interesting start of the week, with commodities at record highs falling all of a sudden on a strong silver slide. The metal fell over 10% after the CME increased its margin requirements, for Comex silver futures for the second time this week as silver prices soar amid much volatility. Profit taking, and short dollar covering sent greenback higher across the board although the spike did not last. Buying dollar rivals on deeps continues to be the prefered trading strategy.

Early European morning, the White House confirmed that Osama Bin Laden, the leader of AlQaeda and responsible to bring down the twin towers, was killed in a Mansion outside Islamabad, Pakistan. Stocks are quite positive on the news despite half Europe including London is on holidays, and despite another dollar run, the American currency remains limited to the upside.

In general, the dollar remains unatractive for investors; despite extremes reached against the greenback, consolidation at highs suggest the trend is not yet over, thus a break now is needed to confirm the continuation. Will review some crosses from the technical perspective in a few minutes.

In the midtime, here is the link for today's calendar:

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

Have a great trading day!