Technical vs fundamental analysis

By GG Analyst in Reviews 0 Comment

EUR/USD

The bears keep the market under vigilant control. The attempts of the single currency to recover and get above 1.31 have failed. This level is the start of Friday’s selling, which eventually brought EURUSD to 1.2990. Then, the second fall below the 200-day MA is also of big importance and is likely to increase the camp of bears. Those, who staked for growth, can be happy that the month and quarter were closed above 1.30. Yet, the main fight for the levels and trends for the coming weeks will take place only closer to the end of this trading week. On more…

Bad news from the USA does good to the markets

By GG Analyst in Reviews 0 Comment

EUR/USD

CBs are again playing giveaway. Draghi has repeated that the Bank is ready to help the EU economy before French Assemblée Nationale. He also specified that supporting of the economy by all the measures ,”which the ECB will see proper”, doesn’t contradict the price stability mandate. It’s interesting to see how the approach has changed – before Draghi the ECB refused to do anything that wasn’t in complete agreement with the mandate. In our opinion, the reason for that is in a better situation in Germany, which doesn’t suffer that strong growth which was a couple of years ago, with a more…

The USA is on its own

By GG Analyst in Reviews 0 Comment

EUR/USD

The euro is being gradually sold. At the same time stock markets are not the best benchmark as the main cause of the pressure on the single currency consists in the renewed fears for the sovereign debt crisis. Peripheral bond yields are again on the rise due to the increasing problems in the banking sector, which is under the threat of toughening of capital adequacy rules. Yesterday’s comments of Draghi, who said that the ECB was far from completing the cycle of the soft monetary policy. It was quite a logical statement for the head of the CB of the region more…

Consolidation after impressive moves

By GG Analyst in Reviews 0 Comment

EUR/USD

Stock markets continued to fall yesterday and managed to stabilize only in the second half of the US session. Bulls were too weak to perform a proper bounce, but the consolidation going on now is already positive in itself. Once again let’s note that Forex is very touchy with regard to new trends and changes in the old ones. So, yesterday’s fluctuations in EURUSD at the beginning of trade were relatively small. The daily low was set at 1.3057, but at the same time it is clearly seen  that the pair was supported on triggering large buy orders. As a result, more…

Too big to grow

By GG Analyst in Reviews 0 Comment

EUR/USD

Forex’s reaction to Bernanke’s commentary was the strongest, yet the market was the first to come to senses after the violent movement. Yesterday since the end of the US trading session and all through the Asian one the dollar index was retracing. Friday is expected to be quiet as no important news is scheduled for today. Among yesterday’s releases the German Flash Manufacturing PMI, which reflected the continuing weakening, deserves attention. Now the euro zone and Germany, a former locomotive, show roughly the same performance. Though, Germany’s Services PMI proved to exceed expectations, returning to the growth zone after two months more…