The Advisor Weblog

Posted: 03 Nov 2011 04:30 AM PDT

Good morning to a new day in forex paradise!

Optimism is up this morning, with dollar losing ground since early European morning, despite Italian 10-Year Bond Yield rose to a new record in the euro era, at 6.399%, and that Greece won't be able to pay wages for state workers and pensions next month without a planned injection of £8 billion of EU cash. The aid has been suspended by the EU and IMF until the referendum planned for Dec 4^th is done.

I was expecting market to be a bit more cautious ahead of Mario Draghi's first act as European Central Bank President; markets expectations are those of keeping benchmark interest rate unchanged at 1.5%.

Ahead of the news, the EUR/USD is testing the 1.3830 static resistance area. The pair needs to break above it to be able to regain some bullish momentum towards 1.3900 and 1.3970 later, while another deep below 1.3710, should mean an approach to the 1.3600 area.