Friday, June 17, 2011

The Advisor Weblog

The Advisor Weblog


Starting the day

Posted: 17 Jun 2011 02:59 AM PDT

Hi everyone! The dollar finally found a top yesterday against major rivals, after a couple of days' of strong rises, supported by risk aversion. Commodities however remain pretty bearish with oil below $ 94 a barrel, and gold hovering around the $ 1525/oz price zone. Stocks, that managed a recovery yesterday halting dollar gains, are struggling today to remain positive.


The greenback is losing ground, with EUR/USD reaching fresh daily highs above 1.4230. Despite early news show trade deficit grow to 4.1Billions in April, although technically, and according to the 4 hours chart, the pair remains bearish: 20 SMA acting as dynamic resistance around 1.4260 seems a probable top for today, while below 1.4200, pair may again slide towards 1.4120 first and the 1.4050/70 area later.
GBP/USD is also limited to the upside, with the pair trading below 1.6160/70 area: unless a clear break and acceleration above this last, pair is set to continue falling. Below 1.6060, past May monthly low, the pair may resume its slide towards 1.5970 price zone.


Safe havens Swiss Franc and Yen are regaining past weeks strength against the dollar, with USD/CHF testing 0.8440/50 support area; once below, falls towards the 0.8370 level seems likely. USD/JPY is breaking below the ascendant short term daily trend line, although only below 80.20 the rally is set to extend.


We have just one fundamental report to watch today, the Michigan Consumer Sentiment; besides that, market will probably move on risk sentiment. Here is the link for today's calendar:


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


Have a great trading day!


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