The Advisor Weblog

USD/CHF: more gains above 0.8700
USD/JPY breaks below 80.00
AUD/USD ready to break lower
Starting the day

Posted: 05 May 2011 08:38 AM PDT

Dollar gains continue after Triched said no to a rate hike in June, with USD/CHF being maybe the most interesting crossing to follow now: having reached a record low at 0.8550, we may be start considering that level as an interim bottom, while strong slide in gold since early week, should weight on the Switzerland currency.

For more details, check this report:

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

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USD/JPY breaks below 80.00

Posted: 05 May 2011 03:10 AM PDT

Coordinated intervention, jawboning, nothing can stop yen trend once it has one. USD/JPY broke below 80.00 with the pair reaching up to now an intraday low of 79.80, as slide in commodities and stocks continues.

Yen has found support in 79.75 back in April 1995, only strong technical support ahead of the 76.40 record low posted past March 16th. Below 79.75, 78.25, March 17th daily low is next bearish target, ahead of mentioned record low. Resistances are now at 80.20 80.40 and 80.80 area in the short term.

This posting includes an audio/video/photo media file: Download Now

AUD/USD ready to break lower

Posted: 05 May 2011 02:41 AM PDT

Aussie slide triggered by metals and stocks bearish momentum, seems ready to extend towards fresh lows, despite in teh long term, we could consider the movement corrective, untill 1.0500 price zone, 48.2% retracement of last daily bullish run. Take a look at the chart:

For more details, see this report:

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

This posting includes an audio/video/photo media file: Download Now

Starting the day

Posted: 05 May 2011 01:30 AM PDT

Hi everyone and welcome back! Ahead of BOE and ECB economic policy decisions and despite metals' slide continues with strength, as silver posted its biggest three-day loss in five years, and gold is nearing $ 1500/oz, as speculators continued to dump long positions after margins requirements were hiked early this week, EUR and GBP managed to stay steady against dollar.

EUR/USD rose as far as 1.4900 in recent European trading, currently retreating below 1.4880, but holding on to recent strength. We may not be waiting for an actual rate hike there, but at least some hawkish comments from Trichet signaling a hike next month. "Strong vigilance" is the wording we are looking for, to confirm next month action.

GBP/USD reached 1.6550 area again, where 20 SMA in the 4 hours chart capped the upside. Retreating strongly from that level, we should not forget that despite economic contraction in the UK is over, at least since early 2010, they are also recovering from its deepest recession since the 1930s and grappling with its largest budget deficit since the war. No rate hikes at sight there, key support remains previous strong highs around 1.6430. Below that area, the slide could turn much stronger in the cross. Services PMI was also weaker than expected in the UK, making that 3 days in a row of negative data this week. Not much bullish strength seen now in Pound.

Despite a minor report, today we also have US weekly unemployment claims, last hint towards tomorrow's US NFP, along with Trichet speech.

CHF and JPY hold recent strength as per stocks sliding and general risk aversion enviroment; watch the crosses against EUR and GBP may turn pretty interesting today.

Anyway! will take a look at some technical points, before the news, that I will cover live at www.fxstreet.com home page.

Here is the link for today's calendar:

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

Have a great trading day!