Buying the dips

By GG Analyst in Reviews 0 Comment

EUR/USD

Within the last 24 hours the single currency has left the zone of 1.31. Late on Thursday evening EURUSD was as low as 1.3050. Those, who stick to technical analysis in their trading, suspect that the pair can form a double top, and this is not without reason. On Wednesday the euro tried to break above the previous highs, however the bears repulsed the attack. In the long term, we believe, the single currency is in no danger, but still we shouldn’t expect that growth will be without stops and retracements. One of such, apparently, was yesterday. Though the bulls felt more…

The bulls were in the lead yesterday, though did that with reluctance

By GG Analyst in Reviews 0 Comment

EUR/USD

Yesterday growth of the euro wasn’t that fast, but nevertheless the currency hit a new local high. The market caution is a bit frightening. The previous wave of growth at the beginning of September was much stronger. The high set in that move makes 1.3171. The bulls, which yesterday pushed the pair up to 1.3138, will hardly go down without a fight, that is without an attempt to enter the zone of triggering stops. This caution of the markets is connected with the upcoming EU summit. Actually, the latter isn’t expected to bring anything new, except for the already known facts. more…

After the rain comes the sun

By GG Analyst in Reviews 0 Comment

EUR/USD

As we mentioned yesterday, at present the markets enjoy good news. Yesterday the single currency managed to break through 1.30 since Merkel’s party, CDU, supported the plan to grant Spain a precautionary credit line to the rescue fund. In itself this event doesn’t imply any money allocations to the country or any other expenses, however already now we can see the effects. The yield of the government debt securities has gone down a bit. Then it was reported that Moody’s had decided to keep Spain’s rating at Baa3. This is the lowest investment grade. Anyway, it’s good news that there’s no more…

Moving slowly along the edge of an abyss

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets still lack this domineering idea that would form the trend in one or the other direction. Though volatility now is higher than in late August, many markets make no headway just like in those times. But then traders had an excuse – “big money” was on summer vacations and there were no ideas at all. Now the situation for EUR/USD is balanced. Each currency in the pair enjoys modest good news and expects high-risk events in the future. Thus, this week we heard about the growth of industrial production in Europe, increase in German exports and a rise in more…

Problems are only with the euro

By GG Analyst in Reviews 0 Comment

EUR/USD

The single currency still cannot start growing. Yesterday’s consolidation of EUR/USD with purchases on the decline below 1.2850 was sharply broken by the S&P’s message about cutting of Spain’s rating. Now it is just a step above the dust heap. As emphasized by the rating agency, the entire blame lies with the poor economic growth and inability of the government to handle the situation. But we know that these things are closely connected with each other and that the poor economic growth feeds itself in the environment of fiscal austerity: the economy gets worse, entailing plunge in tax receipts and increase more…