A long and bumpy road

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week ended with a correction. Players were too weak to break through 1.34 in EURUSD. As before, they just hit the level without being able to consolidate at it. The bulls should be encouraged by the fact that Friday’s retracement was not that big as at the beginning of the week. Thus, we still expect that growth will continue in the coming days.  What we need is a good reason. It’s quite likely that the euro will again be moved by news from Spain. In the previous two weeks the rally was provoked by positive results of the auctions. This more…

Optimism is growing

By GG Analyst in Reviews 0 Comment

EUR/USD

Last week the markets continued their way up. We expected this outcome not only because of the high demand for risk, which appeared thanks to the major CBs and their money emissions since the third quarter of the previous year. The move was also boosted by the preceding stagnation in the markets. The Forex volatility indicator was minimal in December and the stock market one, VIX, hit its 5yr lows. We’ve had bad experience with such drops of the implied volatility before – over the last 5 years such lulls have ended with a decline. Let’s see if this time the more…

EUR – the strongest major at the moment

By GG Analyst in Reviews 0 Comment

EUR/USD

The markets seem to be gripped by the holiday mood. The decrease in the number of market participants clears the way to stop-order levels. It’s especially typical of our digital era, when trading depends largely on the digital algorithms. At such moments like this the pair, leaving the established trading range, stumbles over an avalanche of stop orders, which boost the further motion etc. In our case, the single currency, cursed by everyone earlier this year, is now the best among the majors. For instance, against the dollar the euro has been appreciating for 8 days in a row and is more…

Is the Christmas Forex-rally about to start?

By GG Analyst in Reviews 0 Comment

EUR/USD

Don’t be surprised at yesterday’s retracement of the markets. It doesn’t really mean that the further upward move is not possible and that the market is disappointed because Bernanke has proved to be tougher than needed. Yesterday’s move down as well as selling late on Wednesday has just marked taking of profits and rebalancing of positions before the Christmas rally. Yes, we believe that it hasn’t started yet, since the level of 1.3140 hasn’t been passed. The bears have pushed the pair off this level frequently this year. But this time there’s a good chance that the level will be passed more…

Optimism up – USD down

By GG Analyst in Reviews 0 Comment

EUR/USD

The market lingered for a while, but eventually came to the conclusion that we described in our previous review. The Fed is expected to extend QE in order to reduce the pernicious effect of the Operation Twist expiry at the end of the year and avert the possible negative consequences of the fiscal cliff.  Actually, the US congressmen are lucky to have this kind “Helicopter Ben”, who is always ready to come to the rescue and ease the pain from their own irresolution and failures. For comparison, the ECB’s head, Mario Draghi, agrees to support the financial markets of particular countries more…