Monday, May 14, 2012
Today, we are witnessing more dollar strength across multiple currency crosses and flight to safety in the EUR/USD as concerns over the political gridlock in Greece & possible risk of contagion continue to weigh heavily on investor sentiment. The EUR/USD pair fell 109 pips from the session high at 1.2935 to the session low at 1.2826, where it found support.
In today's technical analysis video, we will briefly explain the price action in the EUR/USD pair and identify common areas of support & resistance for potential trade entries.
Tuesday, May 1, 2012
Markets have been in a sleepy mood today due to the May Day Holiday in both Asia & Europe, which is the equivalent to our Labor Day Holiday in the United States. Volume & liquidity has been on the low side for the new month, resulting in little to no change in price for equities, currencies, commodities, and other asset classes. The Euro has managed to eke out marginal gains since the European Open, with the EUR/USD probing to a 4-week high, despite the troubling news from yesterday about the S&P credit rating downgrade of 16 Spanish Banks and the contraction of Spain's economy by 0.3% in the first quarter.
We started today's webinar discussing the unexpected rise in the ISM Manufacturing PMI number for the month of April to 54.8, which was above the forecasted 53.0 and higher than the previous month's number of 53.4. This better-than-expected data caused the EUR/USD pair to weaken on US dollar strength, since a rise in manufacturing would further confirm that the US Economic Recovery is still resilient and positive, despite prior indications that it had slowed down and lost momentum.