User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Tuesday May 4, 2010 - 23:24:31 GMT
Forex Hound -

Share This Story:
| | Email

Euro Briefly Pierces 1.30; Trend Down but Ripe for Short-Covering Rally

The Dollar Index continued to soar on Tuesday as it touched its highest level since May 2009. After spending April trading on both sides of a monthly 50% level, the Index is now in a position to test the .618 price. Based on the major monthly range of 89.62 to 74.17, traders should look for the market to test 83.72 over the near-term. This market should continue to remain strong as long at 81.90 holds as support.


The Euro traded sharply lower on Tuesday, reaching a 12-month low at 1.2993. Although a bailout agreement was reached by the Greek government, the European Central Bank and the International Monetary Fund over the week-end, bearish traders have shifted their focus to the growing fiscal problems in Spain and Portugal. Hedge fund and large traders continue to press the short-side, but the technical bounce after briefly breaking the psychological level at 1.30 may be an indication that this currency is ripe for a short-covering rally.


The sharp break in the GBP USD is an indication that concerns are building that the U.K. economy could face similar fiscal problems as Greece. The main concern among investors at this time is the May 6th election. In my opinion, the election outcome is expected to yield two results and both of them are bearish to the Sterling.


Firstly, recent polls suggest that the election is too close to call. This means that a hung parliament is likely. A hung parliament results when there is no clear majority winner following the election. If no majority is in control of the parliament then it is highly unlikely that moves will be made to shore up the U.K. economy and budget deficit problem. If this occurs, then the British Pound is likely to weaken because of the threat of a possible credit rating downgrade and the possibility of sovereign debt default.


Secondly, even if a majority party is elected to parliament and moves are made to try to fix the economy, the first move is likely to be massive budget slashing. The Pound is likely to break further if the U.K. is forced to make austere financial cuts just like Greece. Mistimed budget cuts when the economy is in need of stimulus could set the U.K. economy into a double-dip recession.


The weak Euro sent the USD CHF sharply higher. Traders expect the Swiss National Bank to intervene to defend its currency. Based the 12-month range of 1.1965 to .9918, the market is now trading inside the retracement zone of this range at 1.0914 to 1.1183. Look for this pair to continue to strengthen as long as the low end of the range holds with the upper end the next objective. The severely oversold Euro may trigger a short-covering rally in the Swiss Franc. Aggressive traders have to be careful about chasing this market higher.


The drop in gold, crude and equities helped to trigger a break out rally in the USD CAD. After building a support base in April, this pair finally crossed a swing top at 1.0215 to turn the main trend to up on the daily chart. Upside momentum indicates that 1.0302 is the next upside objective followed by 1.0366. The weakening Canadian Dollar is most likely pleasing to the Bank of Canada which hinted last week that a strong currency is likely to have an impact on inflation and monetary policy. This led this analyst to believe that the BoC was intervening to weaken the Loonie. Look for the USD CAD to continue to strengthen unless there is renewed demand for higher risk assets.


The AUD USD traded sharply lower on Tuesday. Late last night the Reserve Bank of Australia hiked its benchmark interest rate as expected by 25 basis points to 4.50%. Based on comments from RBA Governor Glenn Stevens, this is likely to be the last rate hike for a while. Stevens feels that the RBA has reached its objective by bringing rates back to normal between 4.50% and 5.00%. He further added that he feels inflation was likely to remain in the upper half of the RBA’s target range.


Adding further to the weakness in the Australian Dollar was the sell-off in the equity markets. Traders also remain a little cautious as to whether a tighter monetary policy in China will curtail demand for Aussie goods and services.


Based on the main weekly range of .8577 to .9387, traders should look for the Aussie to correct to .8982 to .8886.


On Tuesday, the NZD USD fell in sympathy with the Australian Dollar and a lack of demand for higher yielding assets. Based on the activity by the RBA, many traders now feel the Reserve Bank of New Zealand will wait until the second half of the year before raising rates. The chart formation suggests a test of the former top and current breakout area at .7199 is likely. If this price fails to hold, then look for a full retracement to .7188 to .7156.




Forex Trading News

Forex Research

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 here.

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."

Actionable trading levels delivered to YOUR charts in real-time.

Register To Test Your Amazing Trader

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 10 Sep 2018
AA 08:30 GB- GDP, Trade, Output
Tue 11 Sep 2018
AA 08:30 GB- Employment Decision
A 09:00 DE- ZEW Survey
Wed 12 Sep 2018
A 12:30 US- PPI
A 14:30 US- EIA Crude
A 18:00 US- Beige Book
Thu 13 Sep 2018
A 1:30 AU- Employment
AA 11:00 GB- Bank of England Decision
AA 11:45 EZ- European Central Bank Decision
A 12:30 US- Weekly Jobless
AA 12:30 US- CPI
Fri 14 Sep 2018
A 08:30 GB- GDP
AA 12:30 US- Retail Sales
A 13:15 US- Industrial Production
AA 14:00 US- prelim University of Michigan

John M. Bland, MBA
co-founding Partner,

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube

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.

Request a TRIAL of Max's Forex Service.


Retail Forex Brokerage Changing!

Are you 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.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

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.

Forex News

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

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

Forex Brokers

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 Trading

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.

FX Trading

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.

Forex Blog 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 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.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2014 Global-View. All Rights Reserved.
Hosting and Development by Blue 105