Monday, March 26, 2012
During today's trading session, risk appetite was the major theme as we saw the EUR/USD pair rally 176 pips on expectation of dollar weakness. The pair had climbed from its session low at 1.3192 towards its session high at 1.3368 and had broken through multiple resistance levels on its way there. The EUR/USD pair is currently consolidating beneath resistance at 1.3366 ahead of the Asian Trading Session.
In today's technical analysis review, we will briefly explain the price action in the EUR/USD pair and identify common areas of support & resistance for potential trade entries.
Thursday, March 22, 2012
During today's webinar, we discussed how investors have shifted away from being influenced by the European Debt story for the immediate term, and have now been concerned about a possible slowdown in global economic growth. There is concern over the rate of change in China's GDP forecasts and how this slowdown in China will effect global growth, and in particular the US recovery. Despite the news & fears surrounding economic slowdown, we are still seeing US equities fairly hold up and extend its rally higher, which is contrary to other global equity markets. This has led some analyst to believe that the good macro-data from the US economy has kept US equities insulated from any risk coming out of Europe and China. In the currency market, we've seen a brief change in the USD risk-off to risk-on correlation and there have been times when good US data has caused the greenback to rally.
EUR/USD slumped after seeing disappointing manufacturing PMI numbers from the Eurozone, which caused investors to scurry towards USD safety.