The Advisor Weblog

Dollar under pressure, Euro strong
USD/CAD not yet reversing
GBP/USD down on dovish BOE

Posted: 22 Jun 2011 06:47 AM PDT

Dollar remains strongly down across the board, I would say gold above $ 1550/oz is among the reasons. Strong stocks after recent US opening, seems to be also favoring risk appetite, and even the Pound is managing a rebound from daily low @ 1.6090.

Here is the major's hourly outlook for current American session:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/06/22/02/

USD/CAD not yet reversing

Posted: 22 Jun 2011 04:12 AM PDT

Watching the daily chart, there is no much more to recent rally to the upside, than a correction of the long term bearish trend the cross is in. Daily chart shows indicators pretty bearish, and the upside capped by 200 EMA; I believe that only IF we overcome parity, we can talk about a bottom and a long term reversal in the cross.

Intraday view however, seems bit more bullish as oil continues pressured below $ 100 a barrel, and stocks are mostly negative today. Here is the short term technical outlook:

http://www.fxstreet.com/technical/forex-strategy/the-best-pair-to-trade-now/2011/06/22/

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GBP/USD down on dovish BOE

Posted: 22 Jun 2011 02:49 AM PDT

Hi everyone! Good mood seen yesterday in markets seems to be fading as at this time of the European morning, stocks and commodities struggle around the opening levels, showing no much aims to extend gains.

Pound sunk more than 100 pips already and will probably continue lower, as latest BOE Minutes shocked the market: 7 out of 9 members voted to keep rates on hold as the majority believes more bond purchases may be needed because of potential downside risks to growth and inflation; any charm the UK currency had is now gone, and the downside for GBP/USD is quite open: quoting below 1.6160 immediate resistance, pair has key support around 1.6060/80 area, where we have several daily lows. Below this last 1.5970 will be next. Above 1.6160, immediate resistance comes at 1.6200, not seen for today.