Forex News Blog
Back to The Headlines
Tuesday June 6, 2006 - 09:25:10 GMT
Share This Story
ACM - www.ac-markets.com
Is the Euro ready to take off again?
By Marc Spaelti - ACM Senior Trader
Yesterdays News and Events:
Markets in Europe on Monday were as quiet as they can get, EURUSD stuck to a tiny range near the 1.2960 key resistance, but it had no success in closing the day above that with a late New York sell-off that knocked the pair to 1.2885. Cable looked weak yesterday, trading down 1-cent from the 1.8860 top during the quiet European session before it fell to a 1.8695 low overnight. With the ECB rate hike around the corner, we witness an ongoing interest by investors to change GBP for EUR. Over the past 3 weeks, the EURGBP cross has gained 2% to come close to a medium-term resistance at 0.6900. While Cable looks least bullish of the major currencies, USDCHF seems willing to pressure for a break of the 1.20 key area. Last night the Dollar only rallied 70pips to top at 1.2100 before falling back to the 1.2040 support level, a daily close beyond 1.20 is a bearish signal. The Central Bank conference between FED, ECB and BOJ yielded little news, as the three mostly discussed long-term issues. Bernanke was maybe a touch more hawkish, fearing a rise in core inflation that would continue to press prices upwards. He also mentioned that US consumers debt have grown, but thinks that higher interest rates would be absorbed well as assets have also grown. Trichet, a known hawk repeated his views of the ECBs need to delivery price stability amidst growing inflation risks and added that excessive dynamism in asset prices increased these risks even further. In contrast, BOJ Muto remained careful, neither dove nor hawk he sees the BOJ holding on to its zero-rate policy for a while longer and replied to Trichetâ€™s fears that it was extremely tricky to put too much weight in rising asset prices, a bubble could only be named such after it had burst.
Todays Key Issues:
Only data today was out at 8amGMT, Euroland May Services PMI rose slightly more than expected to 58.7 from 58.3 in April. The Euro did not move but remains in a high range between 1.2885 and 1.2960 for now.
The Risk Today:
4-H EURUSD: The Euro is holding in a tight range near its highs, 1.2960 is the key resistance, 1.2885 is strong first support. Today we are likely to remain right here, any attempt higher is probably doomed to fail at 1.30. The question here is how much of an ECB rate hike has been priced into the current exchange-rate. With a 25bp hike expected and 50bp hoped for by some, we see the larger risk in a sell-off after the announcement, judging from the charts, there is lots of space to the downside, 1.2785 is next stronger support, key support 1.2730, trading lower risks a deeper correction towards 1.24/1.25. An eventual 50bp rate hike on the other hand will probably cause additional Euro buying, once the psychological 1.30 level was breeched we will look to rise towards the 1.3660 all-time high in the weeks/months to come.
4-H GBPUSD: The range is slowly getting tighter, from nearly 4-cents a few weeks ago, it has narrowed to 1.8640 / 1.8885 today. Outlook is neutral, strong initial resistance at 1.8770, while underneath we clearly favor a fall to 1.8640.
Resistance and Support:
|EURUSD ||GBPUSD ||USDJPY ||USDCHF |
|1.2995 S ||1.8885 K ||113.40 K ||1.2260 K |
|1.2960 K ||1.8825 M ||112.95 S ||1.2170 S |
|1.2935 M ||1.8770 P ||112.50 M ||1.2100 S |
|1.2900 ||1.8720 ||112.25 ||1.2070 |
|1.2885 M ||1.8700 M ||112.10 S ||1.2040 K |
|1.2785 S ||1.8640 K ||111.85 M ||1.2000 S |
|1.2730 K ||1.8590 S ||111.55 K ||1.1935 M |
|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..