Wednesday, January 18, 2012
In today's V.I.P. webinar, we briefly discuss the current price behavior in the EUR/USD pair and the fundamental news pushing market prices. We also place a few live trades using the Slumdog Forex trading system.
Friday, January 13, 2012
We started this webinar by providing a brief fundamental overview of market activity for the past two days. Yesterday's trading day was largely positive as the euro gained across multiple crosses due to successful auctions in the shorter term Italian & Spanish bond market. We saw the yields or borrowing costs drop substantially and this led to an improvement in investor sentiment and a risk appetite rally for US equities and currencies.
During today's European Trading Session, we had another Italian bond auction for the longer-dated paper (10yr & 30yr bonds), and after the completion of this bond auction, we saw the EUR/USD fall lower. This was due to investors feeling concerned that the Italian 10 yr- auction didn't match the success of the longer dated Spanish 10yr bond auction. The pair had encountered resistance at 1.2869, which is the 50% fibbonacci retracement level of the recent move down and the R1 level from the daily pivot point calculation.
Prior to the New York Opening Bell, we saw more downside risk in the market as the S&P announced that the credit rating of 15 Eurozone nations would be downgraded.This announcement caused the Euro to weaken across multiple currency pairs and the EUR/USD broke to a new 2012 low.