The Advisor Weblog

Posted: 19 Jul 2011 06:48 AM PDT

Risk is on, risk is off. Stocks slump, stocks recover. Dollar win, dollar loses. And in the mid time prices are not that much changed from past week levels, yet gold reached a fresh record high, and holds steady above $ 1600/oz, showing us investors are not willing to risk with currencies right now.

The EUR/USD tug of war seems not going to have a positive outcome for the European currency: early this morning, ECB member Ewald Nowotny suggested the bank may compromise and allow a temporary Greek default, nothing new, yet also nothing positive for the Euro. The spread differentials continue reaching record highs, now for Spain and Italy, and as I stated several times, I do really believe this is just the beginning.

Canada has just published the latest monetary policy decision, leaving rates unchanged at 1.0%, with USD/CAD accelerating lower. Strong support and bearish target lies around 0.9440/50 area, 4 years low set May this year.

Here is the link, for the technical perspective of major crosses:

http://www.fxstreet.com/technical/analysis-reports/currency-majors-technical-perspective/2011/07/19/02/

Have a great trading day!