Choppy market

By GG Analyst in Reviews 0 Comment

EUR/USD

We can’t say that trading in Forex is as quiet, to be more exact listless, as about a month ago, however no definite trend has set in yet. The single currency has performed a nice jerk since the start of the week, bouncing off 1.28 and getting to 1.2967 yesterday. Yet, the currency passed exactly the same distance from mid Friday till the beginning of Monday’s session in Asia. Probably, we’ll see another move down to 1.28 soon. EUR/USD looks quite unstable above 1.2950, so at the end of the US session traders started to purchase the US dollar. The leading more…

Poor US statistics didn’t stunt the market growth yesterday

By GG Analyst in Reviews 0 Comment

EUR/USD

Spain faces a difficult task, but, in our opinion, Rajoy’s government has taken the right approach to the deficit reduction issue. Next year’s budget, which was published yesterday, focuses primarily on the reduction of the government spending instead of the tax increase. Cutting the government spending by 7.3%, Spain supposes to save €13bln. It’s important that this scheme of deficit reduction goes in line with the EU bailout terms. Thus, Spain formulates the fiscal policy, which beforehand presupposes the turn for help from the outside. Otherwise, it would be necessary to revise the budget in a few months, which would only more…

Buy on the dips

By GG Analyst in Reviews 0 Comment

EUR/USD

Selling in the stock markets and among risk-sensitive currencies continued for most part of the day yesterday. The American indices received some small support only at the beginning of trading in Asia, when speculations  grew on the news about possible incentives from China’s government. Technically the stock markets, following Forex, have returned to the levels which were observed before the QE3 announcement. However, the charts clearly show that the market has to go down as much again to get to the levels where it was before Draghi. Thus, the situation looks as follows: speculators, who have staked on the growth of more…

Tug of war is over: bears win

By GG Analyst in Reviews 0 Comment

EUR/USD

A tug of war between bears and bulls has ended in victory for bears. The stock markets have declined sharply: the American exchanges have lost by more than a percent and the Asian markets have fallen by approximately two percents. The reason why the US exchanges have taken up a defensive position is quite clear: earlier that day the indices hit the highest level for the last 5 years. With such a background it was logical to expect profit taking. Here we should also consider the fact that the rally in the American market has been exemplary for too long and more…

Consolidation over, get ready for a true rally

By GG Analyst in Reviews 0 Comment

EUR/USD

Selling of the single currency stopped as suddenly as it started. The bears failed to push EUR/USD below 1.29. This is exactly the level from where the pair started a rally after the announcement of QE3. Yesterday the single currency enjoyed a good buying interest at 1.2920, and this means that large players were defending their long positions, opened after the QE3 announcement on September 13. Exactly yesterday we mentioned that such performance had already been observed in history. Usually, the first wave of the speculative rally quickly reverses and drives the markets to that very place where they started growing. more…