Tuesday, January 31, 2012
*We Had Technical Difficulty During This Webinar And We Were Unable To Record The Whole Meeting.*
During the week of Non-Farms Employment Report, we normally see market consolidation, thinner volume, and rangebound activity ahead of the announcement. However, for this week, we have been seeing strong swings in the EUR/USD pair, from risk-on to risk-off, due to event risk coming out of Europe and uncertainty over the Greek PSI & whether Greece will qualify for their next batch of aide from the Troika. However, right now, borrowing costs in Portugal have risen to unsustainable levels and there are concerns that A Greek default will have a huge negative impact on the Portuguese economy.
Thursday, January 26, 2012
For the past 2 days we have been in a risk-on rally in multiple asset classes, due to news coming out from the FOMC meeting that they had agreed to keep interest rates near zero until the end of 2014. This announcement not only surprised the market but raised the expectation of the FED leaving a door open for more quantitative easing. Investors priced in this expectation as we saw bullish momentum in equities, commodities, and higher yielding currencies. We saw a 252 pip climb in the EUR/USD pair and it found resistance at 1.3184.
In today's technical analysis video, we will also identify trade entries around support & resistance levels.