Thursday, July 10, 2014
A surge of volatility entered the market after a series of disappointing data and news from the Eurozone put pressure on the common currency (Euro). A combination of poor Industrial Production readings from a few Eurozone countries (France, Italy, and Greece) and the turmoil surrounding the insolvent Portuguese bank, Espirito Santo, and their missed debt payments, led the EUR/USD pair on a 62 pip slide, from resistance at the session high of 1.3651 to support at the session low of 1.3589. Risk Aversion and Flight To Safety was the common theme among global equities and many investors preferred the safe haven trade, causing Bunds, USD, and the Yen to benefit.
In today’s technical analysis video, we will describe price action in EUR/USD and identify common areas of support & resistance for trade entry.
Wednesday, July 9, 2014
During today's webinar session, we discussed investor's expectations regarding the forthcoming statements within the FOMC minutes and the influence this reading may have on the dollar trade. Many investors will be looking to see if there is any indication of the FED accelerating their timeline for an interest rate hike, and if there are any changes to their exit strategy, especially after the good Non-Farm Employment Report for June.
For the past few trading sessions, natural & geo-political conflicts around the globe have caused the market to embrace a risk-off mode, with global equities falling as funds continue to rotate out of higher yielding assets into fixed income. For another trading session, we saw substantial support on the longer end of the US Treasury curve. This was the reason for the dollar weakness we saw during Wednesday's trading session.
In today's trading webinar, we observed price action in a few currency pairs and identified common areas of support and resistance for trade entry.