Forex News Blog
Back to The Headlines
Wednesday May 31, 2006 - 09:28:43 GMT
Share This Story
ACM - www.ac-markets.com
Consolidation phase is ending as the Dollar slides
By Marc Spaelti - ACM Senior Trader
Yesterdays News and Events:
For a while it looked like the Dollar was successfully defending support levels as it made small progress in the European morning. With the release of US May Consumer Confidence at 103.2, down less then expected, markets suddenly turned volatile, pounding the Dollar. EURUSD climbed to 1.2910, Cable rose to 1.8870, with currencies closing the day very high it looks like the 2-week consolidation phase is coming to an end and the Dollar is at risk of falling back to the years low from here.
Treasury Secretary John Snow has announced that he is stepping down next month, after rumors of his departure have been circulating for a while now. Henry Paulson, chairman at Goldman Sachs, was nominated as his successor, politicians from both camps seemed to be satisfied with the choice and congressional approval should only be a formality.
Two sets of hawkish ECB comments with Irelands Hurley saying that interest rates will rise further while growth prospect were good. Asked on the impact of forex movements, he said that they were not good for business and did slow economic growth (in the near-term). ECB Almunia repeated that rising interest rates from the current historic low levels would not slow down economic growth.
Todays Key Issues:
Euroland May Business Climate and Consumer Confidence are due at 9amGMT. Consumer Confidence Index last stood at 10, it is believed to rise slightly to -9, Industrial Confidence at +1 in April should fall to 0.
UK May Consumer Confidence Index at 9.30GMT is expected to remain unchanged at -4.
Swiss May KOF Leading Indicator also at 9.30am are forecast to increase to 2.1 from 2.03 last month, the Business Climate Index ought to drop to 17.6 from 18.7.
At 3pm US Chicago PMI is expected to drop to 56 from 57.2 in April.
FOMC minutes of the May 10th meeting are due at 6pm GMT.
The Risk Today:
EURUSD: Instead of breaking to the downside through 1.2700 at the beginning of the week, EURUSD has risen through the past 2-weeks bearish resistance and moved up to 1.29. Of course it is possible to remain range-bound between 1.2720 and 1.2920 for the rest of the week, but hopes of a deeper correction towards 1.25 have to be shelved for now. Risk is for the Euro to trade back up to the 1.2960 top seen in May 11th, a high daily close should build enough momentum to drive the pair through 1.30, next large resistance area will be at 1.3130. Today initial support at 1.2850, pivot at 1.2800 for a fall back to key-support near 1.27.
4-H USCHF: It does not yet look too bearish, the return from the 1.2260 key seems to be holding here around 1.21ish. Watch the daily close tonight, a close underneath of the 1.21 support is bearish, a fall to 1.2020 minimum is expected, 1.1960 likely. But while it holds, the pair may rise and try the 1.2260 level again, strong resistance at 1.2185 on the way up.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.2965 S ||1.9000 K ||113.00 S ||1.2260 K |
|1.2920 M ||1.8885 S ||112.35 M ||1.2175 S |
|1.2900 S ||1.8850 M ||112.00 S ||1.2115 S |
|1.2870 ||1.8810 ||111.80 ||1.2100 |
|1.2850 M ||1.8795 M ||111.55 K ||1.2065 M |
|1.2800 P ||1.8775 P ||111.15 M ||1.2020 T |
|1.2700 K ||1.8585 S ||110.50 S ||1.1945 K |
|S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot |
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
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:
Register To Test Your Amazing Trader
- Actionable trading levels delivered to YOUR charts in real-time.
- Live trading strategy sessions.
- Market Updates with Trading Tools.
Trading Ideas for 11 December 2017
Register for the Amazing Trader
Amazing Trader EVENT RISK Calendar:
Tue 12 Dec
09:30 GB- CPI
10:00 GB- ZEW Survey
13:30 US- PPI
Wed 13 Dec
00:30 AU- Employment
09:30 GB- Unemployment
13:30 US- CPI
15:30 US- EIA Crude
19:00 US- Fed Decision
Thu 14 Dec
07:30 CH- SNB Decision
All Day- Global- flash PMIs
12:00 GB- Bank of England Decision
12:45 EZ- ECB Decision
13:30 US- Retail Sales
13:30 US- Weekly Jobless
14:45 US- Industrial Production
Potential Trading Opportunities
John M. Bland, MBA
- POTENTIAL PRICE RISK: Mediun Tue--10:00 GMT-- DE- ZEW. Second Tier Sentiment Survey
- POTENTIAL PRICE RISK: HIGH-Medium Tue--13:30 GMT-- US- PPI
- POTENTIAL PRICE RISK: HIGH-Medium Wed--09:30 GMT-- GB- Employment
- POTENTIAL PRICE RISK: HIGH Wed--13:30 GMT-- US- CPI
- POTENTIAL PRICE RISK: Medium Wed--15:30 GMT-- US- EIA Crude
- POTENTIAL PRICE RISK: High Wed--19:00 GMT-- US- Fed Decision
- POTENTIAL PRICE RISK: HIGH- Thu --00:30 GMT-- AU- Employment
- POTENTIAL PRICE RISK: Medium- Thu --All day-- global- flash PMIs
- POTENTIAL PRICE RISK: HIGH-Medium- Thu --07:30-- CH- Swiss National Bank Decision
- POTENTIAL PRICE RISK: HIGH-Medium- Thu --09:30-- GB- Retail Sales
co-founding Partner, Global-View.com
EXCLUSIVE: Global-View Daily Trading Chart Points Updated
EXCLUSIVE: Global-View Free Forex Database updated
TRADER ADVOCACY ARTICLES
Trader's Advocate Articles..