The Forex markets were calm in yesterdays trading day as traders and investors alike attempted to interpret the rumours surrounding a Eurozone bailout package that started over the weekend. Stories have been popping up about a €1.7 trillion fund which would be aimed at saving the Eurozone and allow Greece to default on its £340bn debt pile. This would involve propping up the banks that have invested in Greek bonds so that a controlled bailout can begin on the ailing country. Further plans involve recapitalising Europe with tens of billions of Euros to reassure the markets. UK Chancellor George Osbourne was forced to issue a hastily drafted statement after a British Treasury official outlined behind-the-scenes moves allowing a Greek default. Hi
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***Economic Data***
– (JP) JAPAN AUG CORP SERVICE PRICE INDEX Y/Y: -0.4% V -0.4%E
– (KS) SOUTH KOREA SEPT CONSUMER CONFIDENCE: 99 V 99 PRIOR
– (PH) PHILIPPINES JUL TRADE BALANCE: -$570M V -$376M PRIOR
***Markets Snapshot (as of 04:30GMT)***
– Nikkei225 +2.0%
– S&P/ASX +2.5%
– Kospi +3.4%
– Taiwan Taiex +2.5%
– Singapore Straits Times Index +1.3%
– Shanghai Composite +0.3%
– Hang Seng +2.4%
– S&P Futures unchanged at 1,159
– Dec Gold +2.8% at $1,639/oz
– Nov Crude +1.7% at $81.64
***Overview/Top Headlines***
– Asian markets tracked a stronger US session and on reports that EU officials were in the process of drafting a detailed plan to stabilize the debt crisis. EUR/USD was down about 0.1%, GBP was up modestly, USD was up against emerging market currencies. Read more…
September 22nd, 2011 in
Forex News |
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The Head and Shoulder pattern is one of the most discussed patterns used by technical analysts to reflect the end of a trend and the reversal of a market movement. The pattern almost always comes at the end of a large up move, and signals a period were the market is consolidating.
A head and shoulders pattern starts with an uptrend that runs into resistance and the selling pressure pushes the financial market lower to the point of support. Buyers come into the market and eventually push the market higher, breaking through the former resistance point making a new high. The resistance that has been broken, has now become the left shoulder.
Eventually the new upward movement is met with selling pressure pushing the market back down toward support, which is equal to support prior to the recent run up. This new high in the market becomes the head of the head and shoulder pattern.
The new support is met will buying pressure, pushing the markets higher, until resistance. The resistance is not as high as the head, and in general is equal to the left shoulder. This new area of resistance forms the right shoulder.
The move downward, then pushes through the support levels formed from the prior two down moves, which is called the neckline. Once the neck line is broken, the markets continues lower, with a general target as the distance between the head and the neckline.
August 27th, 2011 in
Forex Trader | tags:
Trend |
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Analyst, Autochartist
GBP/CHF is moving down inside the highly Uniform Down Channel chart pattern identified by Autochartist on the 30-minute charts. Autochartist rates the Quality of this chart pattern at the 5 bar level as a consequence of the low Initial Trend (one bar), near maximum Uniformity (9 bars) and above average Clarity (6 bars). This Down Channel is developing in accordance with the strong preceding downtrend that can be seen on the daily and the weekly GBP/CHF charts. High Uniformity of this chart pattern reflects even distribution of the reversal points on which the lower and the upper trendlines of this chart pattern are based. The bottom of this chart pattern formed at the strong support at 1.2950 which has been tested numerously in the last few trading sessions.
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August 26th, 2011 in
Forex Trader |
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GBPUSD Forecast The GBPUSD continued its bearish momentum yesterday and now struggling around the lower line of my bullish channel as you can see on my h4 chart below suggests a critical technical phase. As long as the bullish channel holds the bullish scenario remains intact and the lower line of the bullish channel can be a good place for a long position due to a good risk reward ratio, with a tight stop loss on a clear break below the bullish channel and 1.6270/50 support area. Immediate resistance is seen around 1.6350. A clear break above that area could trigger further bullish momentum testing 1.6420 which could keep the bullish scenario intact. On the other hand, a clear break below the bullish channel could end the bullish outlook and lead price to a new bearish view testing 1.6100 – 1.6000 area.
- Technical Analysis
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- EUR/GBP Going Higher
EUR/GBP Going Higher
- 26 August 2011 10:29 AM GMT
Yesterday the EUR/GBP pair cleared a major resistance zone at 0.8800 closing the day at 0.8830. We have been bullish on this pair for the past week and it appears to be full steam ahead now that we have crossed and closed on the upside of the 62 moving average at 0.8788. If 0.8845 is cleared we may test the two week high at 0.8885. I have been long on this pair since August 19th, after seeing the formation of a double bottom and a bullish engulfing candle at the 0.8675 level of support. Both of these bounced off of an ascending trend line (dating back to November 2007). If price continues upward its possible we will see 0.8930 which is the next strong daily support zone.
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