Thursday, February 9, 2012
Today's price action was marked by much event risk and headline risk due to uncertainty over Greece and whether they would be able to structure some type of a debt agreement. Although the EUR/USD currency pair was slightly bullish, we still saw strong swings as the market moved from risk on to risk off, & vise versa. In today's technical analysis video, we reveal a 40 pip trade, a 25 pip trade, and a 35 pip trade during today's trading session. We will also identify trade entries around support & resistance levels.
Wednesday, February 8, 2012
We started today's webinar with a brief discussion of the price action for the EUR/USD pair and the fundamental reasons behind the current consolidation range-bound activity between support at 1.3248 and resistance at 1.3285. We are currently waiting for the breakout of this trading channel, but until then, we can play the range and enter trades off of support & resistance. Market participants are still waiting to hear whether their will be some agreement on the Greek debt swap, as one of the components of the debt restructuring process, in order for Greece to be eligible for their next tranche of bailout assistance.
However, for the past few days, there has been a surprising rally in the EUR/USD pair, primarily on "buy the rumor, sell the fact" as investors began to feel hopeful that some deal will be pushed through for Greece. Despite all of the deadline delays & lack of details, investors are choosing to remain confident in the Eurozone and its common currency. The excess liquidity brought on by the ECB's 3-yr LTRO is also aiding to provide risk appetite to the market by easing credit concerns.