Euro Reversing?

Posted on: September 27th, 2009

Last week we saw the pound doing some diving, will this week be the euro’s turn?  We think that there is a high probability of this happening. Right now the Euro is still in the 1.46-1.48 range but if it breaks the kumo, the next resistance is around 1.44. You can see on the monthly chart that the euro fell out of its longterm channel and now has come back to test it.

ichimoku-chart

ichimoku-chart

It’s likely also that the S&P and Gold are coming down very soon as well, this will help our short move on the euro:

Comments: 0 • Posted in: Weekly Analysis

Leave a comment

Get Adobe Flash player
RSS Commentary from Kathy Lien & Boris Schlossberg, Directors of Research, GFT
  • U.S. Dollar: Nothing Wrong With Being Predictable 03/16/2010
    There was quite a bit of volatility in the forex market following the FOMC announcement even though there were no major surprises from the Federal Reserve. The Fed kept interest rates unchanged at 0.25 percent, continued to unwind their emergency measures and reminded the market that they are not ready to raise interest rates. This is the same message that […]
  • Fed Leaves in Extended Period Language, but Lots of Upgrades 03/16/2010
    The Federal Reserve left interest rates unchanged at 0.25 percent and included the words “extended period” into their FOMC statement. Going into the Fed meeting, traders were looking for 2 things – the inclusion of “extended period” and the number of dissenters. Once forex traders saw the words reappear in the statement and saw that Hoenig was th […]
  • Housing Numbers Will Not Discourage the Fed 03/16/2010
    Forex traders were completely unfazed by the mild disappointments in this morning's U.S. economic data. Since today is FOMC day, the only thing the market is worried about is the outcome of the Fed meeting and whether the Fed will underwhelm.
  • Pound Turnaround on Short Squeeze 03/16/2010
    The pound staged a massive short covering rally in morning London trade piercing the 1.5100 figure after tumbling to 1.4980 a few hours earlier. The fall was triggered by critical comments from the European Commission which stated that, “"The overall conclusion is that the fiscal strategy in the convergence programme is not sufficiently ambitious and […]
  • RBA Minutes Suggest A Pause 03/15/2010
    The RBA released its minutes of the March meeting at 20:30 GMT today and the overall tone of the report suggested that Australian monetary authorities will proceed cautiously with any further rate hikes in the near term. The RBA policy officials noted that economic conditions continued to improve, stating , “Domestically, most economic indicators continued […]