The euro seems to be making a move towards the 1.400 number, and we may see this taken out early during the week. It is likely that there will be correlation with the GBP, which in turn may give good days for stocks. We have been referring to this EUR/GBP chart for some time now and hopefully we will take some more pips from it. Previously, we have been looking to sell from the ellipses. We are now falling and approaching the 50% retrace line. As I am one of the few who believes that we should be bullish in the short term about the euro, I plan to take advantage of this by buying the euro against Sterling rather than the dollar. With this type of trade there is always the chance that if my analysis is wrong and both GBP and EUR start to fall then the EUR can always out perform the GBP giving us a profitable trade. I will be looking for longs from the .8665 area.
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As EURGBP approaches the 50% retracement, buying opportunities could follow
Posted on October 24th, 2011 at 11:47 am in Currency Majors Technical Perspective by JulianShakespeare No CommentsOngoing ‘Greek Tragedy’ could cause rally in the euro
Posted on October 23rd, 2011 at 1:23 pm in Currency Majors Technical Perspective by MiguelSanchez No CommentsIn the trading week just finished, we have seen a renewed appetite for risk with correlations with stocks pushing EUR/USD to close on a high of 1.3890 and within a whisker of testing the psychologically important 1.4000 handle. Many are asking how can this be when; from a fundamentals perspective; nothing concrete has been agreed with regards to the ongoing ‘Greek Tragedy.’
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Further pullbacks towards the line create trading opportunities in USDCAD
Posted on October 20th, 2011 at 9:28 am in Currency Majors Technical Perspective by JulianShakespeare No CommentsThe break at point A in the USDCAD chart followed a strong downward trend. We then saw a pullback to the line early yesterday which gave an opportunity to enter a long position with tight stops in place. We reached our initial target of 100 pips by the end of the day. We will be looking for further pullbacks towards the line or may look at higher lows for possible entries. Bear in mind that the markets are very volatile at the moment and there’s nothing to say we wont see a return to parity; shown on the chart as pointB. This would also represent a pullback to the line.
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Break down in GBP crosses offers opportunity to go short
Posted on October 18th, 2011 at 8:17 am in Currency Majors Technical Perspective by JulianShakespeare No CommentsBoth of these GBP crosses have been moving in tandem and we had a clear downside break yesterday. Any correlated pullback to the line should be seen as a chance to short with tight stops in place. Placing lines is never an exact science so having two charts for reference will be a help for fine tuning the entry point.
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Are steps to counter Greek Crisis sufficient, or will history repeat itself?
Posted on October 16th, 2011 at 12:17 pm in Currency Majors Technical Perspective by MiguelSanchez No CommentsIn the week just gone, we saw a significant rally in the euro that; in light of the continuing debt crisis; would be hard to justify just on renewed optimism alone. Indeed, the euro; having touched a low 2 weeks ago of 1.3144; has now been as high as 1.3895 on Friday, having recorded a 750 point gain in these 2 weeks. Central Banks and politicians are now doing their utmost to ensure that procedures are in place for the likelihood of a Greek default, whilst the expansion of funds in EFSF is designed to ensure that banks are sufficiently capitalised against sovereign debt. On the surface of it, it would appear that all these measures have been sufficient to appease the markets. Or have they?
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