False optimism

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday the market didn’t hurry to stop a retracement. The single currency continued its upward trend against the dollar and hit a new local high at 1.28. Then, just like a day before, the pair moved off the maximums and took up a defensive position. Today we see systematic purchases in the pair, very cautious at the moment. But it can be just the beginning. We still believe that the euro’s attempts to recover this week resulted from the technical short-squeeze and retracement after the large-scale selling since the second half of October. Our opinion is confirmed by the fact that more…

The bears take profits before a new attack

By GG Analyst in Reviews 0 Comment

EUR/USD

The traders are taking profits on the euro’s decline. It is clearly seen in EURUSD and EURJPY. And these are the main pairs in which the flight from the weak euro into “liquidity” was especially strong. Yesterday they were jerking up after the fruitless attempt to break through the local lows. That was exactly profit-taking, not an attempt to reverse since there was no good news from Europe. Quite the contrary, the German ZEW came out much worse than expected. The economic sentiment indicator dropped down to -15.7, thus bringing the modest growth of October to naught and the current situation more…

The wrong time, the wrong way

By GG Analyst in Reviews 0 Comment

EUR/USD

In the second half of the last week the markets suffered a serious correction. Forex first stood aside, but on Friday also joined the general trend. The single currency dropped below 1.27 against the dollar at the end of the week, thus hitting a nine-week low. Then, at the beginning of September, the pair passed this level without a stop. Some believe that this time the pair’s return will be equally swift. Some consolidation is possible at 1.26. The 200-day MA, which had served as a strong support in September and October, broke under the pressure of the bears. Partly it more…

Stats are getting better, but the markets are still on the defensive

By GG Analyst in Reviews 0 Comment

EUR/USD

The US markets kept falling yesterday, but it already didn’t mean much for the euro. Going down to 1.2715, EURUSD hit its 2-month low. However, by the end of the day the pair had stabilized around 1.2745 and at the beginning of active trading in Asia jumped up to 1.2780. Now it keeps trading here (above Thursday’s highs). The eventfulness of the day (numerous statistics and the decisions of two CBs) didn’t develop into any high volatility in the markets. Draghi’s comments were moderately optimistic. He noted that the outflow of capitals from the suffering countries’ banks changed into the inflow more…

A short celebration and a terrible hangover

By GG Analyst in Reviews 0 Comment

EUR/USD

The election celebrations at the markets didn’t last a day.  The US stock exchanges and risky assets which eagerly started to grow on the news from the political arena have sharply reversed. Moreover, the stock exchanges and commodities have sunk even lower than they were at the beginning of the rally. The market has quickly returned to its acute problems. The US Congress has come close to the “fiscal cliff” issue. There hardly will be an easy solution to it, especially with the current president, since the Congress is under control of the republicans. The major disagreement between the democrats and more…