Thursday, February 16, 2012
During today's trading session, we saw the market bias shift from risk aversion, during the Asian & European Sessions, to risk appetite, in the US session, as encouraging news came from fair US economic data and updates on the European bailout package for Greece, that increased risk sentiment. The EUR/USD pair had rallied ~184 pips from the session low at 1.2975 and it appears to want to extend its gains even higher.
In today's technical analysis video, we will describe price action in the currency pair and identify trade entries around support & resistance levels.
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.