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…

Euro-bears to attack 1.29 again

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro-bears had enough courage, but no strength to test 1.29. On the disappointing Ifo Business Climate statistics the euro sank down to 1.2895. The Ifo index is considered to be one of the best health indicators for the largest EU economy. In September instead of the expected growth it fell down to 101.4, which is the lowest value since February 2010. It should be mentioned here that the falls of such amplitude (-13.7 points after the peak of 115.1 in February) very often forego the periods of economic contraction. Apparently, in the third quarter Germany won’t be able to show more…

The attack of bulls being repulsed, consolidation resumes

By GG Analyst in Reviews 0 Comment

EUR/USD

Friday’s trading was relatively volatile and didn’t have any particular direction. For no special reason, there were upward spikes, then followed by consecutive sell-offs which drove the pair back to the initial levels. This performance is typical of portfolio rebalancing. It’s remarkable that by the end of the trading day the single currency had returned to the opening levels of the day. Besides, despite the sharp fluctuations of 90 pips in an hour, the pair didn’t manage to go beyond the high/low limits of the previous day. The beginning of trading in Asia was rather cautious, which put a certain pressure more…

Just a regular retracement

By GG Analyst in Reviews 0 Comment

EUR/USD

After the launch of QE3 was announced, the single currency has grown from 1.29 to 1.3170. However, since the beginning of the week the pair has lost already 2/3 of these gains. Once again the markets realize that there’s no such thing as a free lunch, even Dove Ben sees that. As we already mentioned at the end of summer, the markets have climbed too high and want a retracement. One of the reasons why the markets feel agitated is increased US oil inventories. Earlier this index gave good timely signals to the market (weekly releases), but now its trustworthiness looks more…