User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Saturday May 22, 2010 - 02:43:18 GMT
Forex Hound -

Share This Story:
| | Email

Euro Reverses Week to Up; Charts indicate More Upside to Follow

The Euro finished the week higher, but more importantly posted a closing price reversal bottom on the weekly chart. This pattern suggests that this week’s short-covering rally could be far powerful than previously estimated.

The short-covering rally which began on Wednesday continued in the Euro on Friday ahead of Germany’s vote to approve the massive deal to save the common currency and keep in check the Euro Zone debt crisis.

Technically, the current daily closing price reversal pattern usually triggers a 2 to 3 day rally. This part was confirmed by the three day rally, however, the upside target is usually a 50% to 61.8% retracement of the last leg down. Based on the last range of 1.3342 to 1.2143, the retracement zone is pegged at 1.2742 to 1.2884.

Because the Euro also made a closing price reversal on the weekly chart, another upside target has been established. The weekly main range is 1.3691 to 1.2143. The weekly retracement zone targets 1.2917 to 1.3100 as the potential upside target.

The best conclusion is that the combination of the daily/weekly closing price reversals indicates that something more powerful than just a simple short-covering rally may be taking place. Be prepared for more upside action next week as shorts will continue to cover aggressively until the Euro reaches the key retracement zones.

Fundamentally, German lawmakers approved the recently proposed $1 trillion loan package which should be accepted by investors as a show of solidarity and a solid attempt to heal public finances. If Germany is going to play a major role in the political and economic unification of the Euro Zone, the approval of this historic aid package is most important amid the recent weakness in the Euro currency.

After this week’s decision by Germany to curb naked short selling triggered a wave of negative publicity, Friday’s approval of the financial aid package by Europe’s biggest economy was a strong sign that it is genuinely concerned about bringing the Euro Zone nation’s together while showing its support for the Euro.

With a record amount of shorts in the Euro, the market got crowded leading to the current two-day short squeeze rally. The threat of an intervention by the European Central Bank also helped lead to jitters in the marketplace. Even if the ECB does not intervene, the mere threat of the intervention makes investors wary of holding too many short positions. With the main trend down, look for short traders to take advantage of the quick rise and begin to slow down upside momentum by slowly reentering the market on the short side.

Revived risk appetite drove the Australian, New Zealand and Canadian Dollars higher on Friday, but these markets were unable to push higher for the week. The main catalysts behind the rally were the stronger Euro and U.S. equity markets. Minor triggers were the threat of intervention and the unwinding of bearish spreads.

The Aussie closed up for the first time in six days but the main trend remains down. Over the losing streak, the Australian Dollar dropped from .8961 on May 13th to today’s low at .8070. Friday’s break took the Aussie to its lowest level since the week-ending July 24, 2009. The lower-low, higher close formation suggests the start of a possible 2 to 3 day rally with .8728 the next upside objective.

Greater demand for higher risk assets and oversold conditions also helped to boost the NZD USD. Although this market was not in a position to form a daily closing price reversal, watch for the start of a 2 to 3 day rally with a possible retracement to .6981.

The USD CAD slammed into resistance slightly above the old top at 1.0738, reaching a high of 1.0749 before turning south. Overbought conditions and a strong equity market helped trigger Friday’s profit-taking break. The formation of a daily closing price reversal top suggests the start of a 2 to 3 day break with 1.0430 the first objective followed by 1.0354.


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

Tue 17 July 2018
AA 08:30 GB- Employment
A 13:15 US- Industrial Production
AA 14:00 US-Powell Testimony
Wed 18 July 2018
AA 08:30 GB- CPI
A 12:30 US- Housing Starts/Permits
AA 14:00 US-Powell Testimony
Thu 19 July 2018
AA 1:30 AU- Employment
AA 08:30 GB- Retail Sales
A 14:30 US- EIA Crude
A 12:30 US- Weekly Jobless
Fri 20 Jun 2018
A 12:30 CA- CPI/Retail Sales

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