Tuesday, February 14, 2012
During today's Asian Trading Session, France, Austria, and the UK were put on negative credit watch by Moody. This news resulted in a risk averse slide in the EUR/USD pair during last night's trading session. However, prior to the Frankfurt Open, there were rumors that China was stepping in to provide greater stability to Europe, and this resulted in a change in risk sentiment. There was also successful short to mid-term Italian, Spanish, & Portugal bond auctions that added risk appetite to the market as well. Although the ZEW data came out better than expected, we see that investor sentiment shifted to the downside and the market began to focus on the negative news reported by Moody and other disturbing events coming out of Greece. There are riots in the streets and social unrest in Athens due to the 300 billion euro of cuts that must be done prior to them receiving the 2nd bailout package. So, all of the fundamental news is supporting euro weakness for the day.
Monday, February 13, 2012
During today's trading session, we saw global equity markets rally despite the news coming out about Greece and internal opposition to the new austerity agreement. However, in the currency markets, we saw a different response to this news and for the EUR/USD pair, in particular, we saw all of its early Asian gains erased during both the London & New York Trading Sessions.
In today's technical analysis video, we will describe price action in the currency pair and identify trade entries around support & resistance levels.