Tuesday, September 23, 2014
During today's trading session, the US dollar found its way back to its session open at 84.80, after falling to a low of 84.46, and
bouncing to near 4 year highs, creating whipsaw movement in the DXY, as well as EUR/USD. This recent climb in the dollar was strongly supported by a combination of profit taking, poor Canadian Retail Sales(-0.1% vs. +0.5% f/c m/m) and a decent U.S. Manufacturing PMI (57.9 vs. 58 f/c) which caused EUR/USD to give back all of its gains from earlier in the trading session. Although EUR/USD is flat at the moment, there are other dollar-denominated crosses that exhibited a definite trend in favor of the greenback. In the USD/CAD pair, the asset rallied ~93 pips from the session low at 1.0987 to the current high of 1.1080, creating a clear-cut Bullish trend.
In today's V.I.P. trading webinar, we discussed price action in EUR/USD, as well as tips on how to identify areas of support & resistance for trade entry.
Friday, September 19, 2014
Today's price action in the spot market was primarily driven by headlines coming out of Europe & cross currency flows in the Pound (GBP) and greenback. The Scots have voted to remain part of the U.K., with a 55 to 45 outcome. This news created early demand for the sterling, as well as for British equities up until the late Asian Trading Session, with GBP/USD rising to a 2 week high at 1.6525, and EUR/GBP falling to a 2-year low of 0.7810. However, sentiment shifted during the European Session as a "buy the rumor, sell the news" response caused investors to take profit on their long GBP positions. Capital flows in EUR/GBP helped to initiate the slide in EUR/USD.
Since the uncertainty concerning the FOMC statement and Scottish vote is now removed, the market continued to focus on the Fed rate hike projections, which resulted in a combination of euro weakness with demand for the greenback, that caused EUR/USD to fall 101 pips from the session high at 1.2929 to the session low at 1.2828. The common currency closed the week with a Bearish Engulfing Candle, which signals the likelihood of more downside pressure in fibre for the following trading week.
In today's V.I.P. trading webinar, we discussed price action in EUR/USD, as well as candlestick patterns and their usefulness in determining support & resistance.