Friday, April 20, 2012
For the past few days, the EUR/USD pair has been moving within a rangebound pattern as investors remain indecisive over whether the debt crisis in Spain will be resolved quickly or with the aide of the IMF or ECB. Price action has been primarily motivated by rising yields in the Spanish bond market and the widening of the bond spreads, which is producing concerns over Spain's ability to finance their debt obligations. Investors are sitting on the sideline and waiting to see all Eurozone peripheral governments take decisive action to reign in their deficit before they totally retreat from their cautious sentiment and fears.
German IFO index for April had come in at a stronger than expected 109.9 compared to the expected 109.5 and this news helped to trigger today's rally in the EUR/USD pair. We also received news that the IMF will be receiving $320 billion worth of pledges from certain nations as a means to expand their fund to help deal with the growing threat of contagion from the Eurozone debt crisis. In addition to this, we are also hearing about deleveraging from some European banks and the repatriation of these funds back to the Eurozone which is also helping to artificially support the EUR/USD pair. All of this news helped to increase risk appetite for today and we saw a rally in the currency market, commodities, and equities.
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and we also place a few live trades using the Slumdog Forex trading system.
Wednesday, April 18, 2012
During today's trading session, the EUR/USD pair had ended the day flat as most of the losses seen during the Asian & European Trading Sessions were recovered during the New York Trading Session. The pair had only fallen 83 pips from the session high at 1.3141 to the session low at 1.3058, where it found support for the day and began to climb higher towards our opening price.
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.