Wednesday, May 8, 2013
The record close in the Dow above 15000 created the risk appetite that initiated the move higher in the EUR/USD early in the Asian Session. But, it wasn't until the release of China's trade balance report from April, which reported a trade surplus of 18.2 billion, that we began to see a little bit of steam added to this rally. Good numbers out of China supports the euro since the eurozone is China's biggest trade partner.
Asian Central Banks began to buy at 1.3090-1.3095 which set the tone for stops to be hit at the 1.3112 level. The 100 Day Moving Average at 1.3158 poses a much more significant resistance.
In today’s technical analysis session, we described price action in EUR/USD and identified common areas of support & resistance for trade entry.
Tuesday, May 7, 2013
In today's Trading Webinar, we discussed price action in the EUR/USD and the reasons for the tight range-bound activity despite the pro-risk market environment .
A better than expected German Industrial Orders from March and short-covering were two of the main reasons for the initial break out of consolidation and rise in the common currency.