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…

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…

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…

Looking through the glass or September against May

By GG Analyst in Reviews 0 Comment

EUR/USD

Over just one day the single currency crossed 1.30 and made a fresh advance to 1.31.  Now trading is at 1.3120, and the daily high of Friday was around 1.3170. Looking at the current rates, it’s hard to believe that only 2 weeks ago bulls and bears were fighting for 1.25. The double whammy, from Draghi and Bernanke, made the dollar retreat on all fronts. It’s remarkable that this should happen against the ongoing issues in the peripheral part of Euro Zone. The troika is going to release its report on the Greek affairs only in October, thus deferring the verdict more…