The Euro made a successful test of last weekâ€™s low at 1.3584
and finished close to the middle of this weekâ€™s range. Early in the session,
the EUR USD broke sharply but buyers came in to defend the low. Volatility is
expected to continue to be high as traders are reacting to news or the lack of
news regarding the possible announcement by the European Union of a plan to
support the Greek economy.
The daily chart pattern suggests this market is being wound
tightly. The longer it remains in a tight range the stronger the breakout move.
A rally through this weekâ€™s high at 1.3838 should put this market on path to
retrace to at least 1.4079 over the near-term.
Timing the swings of the market has been difficult this week
as news has been sporadic. One thing that has been made clear is an agreement
between the EU and Greece
has been reached. The main issue driving the Dollar and the Euro today is the
details of the pact. Some bullish Euro traders apparently were led to believe
that a bailout out would take place, but that does not appear to be the case.
Talk is circulating that the pact is a show of solidarity by
the European Union. This is likely to mean that the EU as well as the
International Monetary Fund will maintain a watch over the Greek budget and
assure adherence to its strict requirements. Furthermore, loans will be
provided when deemed necessary to shore up the Greek economy.
Skeptics maintain that this type of agreement will not last
and that similar issues are likely to flare up in Portugal
These issues will once again test the foundation of the European Union. If
anything, trader reaction has been less than bullish although the door has been
left open for a substantial short-covering rally in the EUR USD.
The British Pound tested this weekâ€™s low at 1.5534 before
mounting a strong recovery rally. This market appears to be forming a support
base and like the Euro is awaiting details of the Greece rescue plan. Shorts are
likely to cover as the details of the rescue are released.
Technically, this market has a short-term upside target of
1.5801 to 1.5865. Gains could be limited because of the economic issues in the U.K. On
Wednesday, the Bank of England lowered its inflation estimate while hinting at
expanding and extending its quantitative easing program. Furthermore, just
because Greece is being
helped out does not mean the deficit issues facing the U.K. will go away. Over the
short-run, the focus may shift away from Greece
to the U.K.
The USD JPY finished the day slightly lower during an almost
lifeless trading session. Thursdayâ€™s weakness comes as a surprise because the
combination of the Greek rescue plan and Bernankeâ€™s talk of raising the
discount rate earlier in the week should have been supportive for the Dollar. In
addition, increased appetite for risk should have triggered a more bullish
response. Short-term overbought conditions could be triggering the weakness. The
lack of movement in this market could be suggesting that traders remain nervous
about the condition of the financial system.
The weaker Euro helped drive up the USD CHF. The high of the
day was within a few pips of last weekâ€™s high at 1.0794. This was also near an
area where the Swiss National Bank finished last weekâ€™s intervention action. Because
of the magnitude of the situation in Greece, traders may be waiting for
the actual release of the details from the EU/Greek pact before committing to
the short-side. A recovery rally in the Euro over the past few days should
pressure the USD CHF because it eliminates the need for the SNB to intervene to
protect the value of its currency and its economy against deflation.
Canadian Dollar traders ignored the stronger Dollar and
instead chose to focus on the strength of gold, equities and crude oil. The USD
CAD opened lower, but rallied a little early in the session as the Dollar
strengthened and risky assets fell.
Technically, this current break in the USD CAD is related to
last Fridayâ€™s closing price reversal top. The main trend on the daily chart
turned down today on the move through 1.0545, but losses were been limited
after a successful test of a 50% price at 1.0501. A failure to hold this level
will trigger a further decline to 1.0436. The bigger picture suggests more
rangebound trading should be expected.
The AUD USD surged to the upside on increased demand for
higher yielding assets. Stronger than expected jobs data was the initial
trigger of Thursdayâ€™s rally. Last night, it was reported that the number of
jobs created was almost three times the pre-report estimate. This has once
again triggered the debate over an interest rate hike by the Reserve Bank of Australia now
that there is evidence the economy may be heating up.The charts indicate this market is on course
to reach a major retracement zone at .8953 to .9042.
The NZD USD followed the Australian Dollar higher. Traders
are also speculating that a pact between the EU and Greece will calm the markets and
increase trader appetite for risk. Last night, the New Zealand Dollar entered a
retracement zone at .6978 to .7019. A breakout over .7019 could trigger an
acceleration to the upside to .7124 over the near-term.
Forex Trading News
Daily Forex Market News Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Forex News Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
Elevate Your Trading With The Amazing Trader!
The Amazing Trader includes:
Actionable trading levels delivered to YOUR charts in real-time.
POTENTIAL PRICE RISK: HIGH to Medium- Wed --14:15 GMT-- US- Industrial Production
POTENTIAL PRICE RISK: HIGH- Wed -- 15:00 GMT-- CA- Bank Of Canada Decision
John M. Bland, MBA co-founding Partner, Global-View.com
Max McKegg's Daily Forex Trading Forecasts
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
looking for your first broker or do you need of a new one? There are
more critical things to consider than you might have thought.
We were trading long before there were online brokers. Global-View
has been directly involved with the industry since its infancy. We've
seen everything and are up-to-data with recent regulatory changes.
The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.
The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.
Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by Global-View.com.
The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.
Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.
Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.
Global-View.com also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at Global-View.com. This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.
WARNING: FOREIGN EXCHANGE TRADING AND INVESTMENT IN DERIVATIVES
CAN BE VERY SPECULATIVE AND MAY RESULT IN LOSSES AS WELL AS PROFITS. FOREIGN
EXCHANGE AND DERIVATIVES TRADING IS NOT SUITABLE FOR MANY MEMBERS OF THE
PUBLIC AND ONLY RISK CAPITAL SHOULD BE APPLIED. THE WEBSITE DOES NOT TAKE
INTO ACCOUNT SPECIAL INVESTMENT GOALS, THE FINANCIAL SITUATION OR SPECIFIC
REQUIREMENTS OF INDIVIDUAL USERS. YOU SHOULD CAREFULLY CONSIDER YOUR FINANCIAL
SITUATION AND CONSULT YOUR FINANCIAL ADVISORS AS TO THE SUITABILITY TO YOUR
SITUATION PRIOR TO MAKING ANY INVESTMENT OR ENTERING INTO ANY TRANSACTIONS.