Euro and Sterling Chart Art

Looking at the EUR/USD 4-hour chart there definitely looks like a strong uptrend going on!

If I zoom into the 1-hour chart, we see the yellow trendline and the 100 SMA(pink line) are coming close to the level 1.3930.

Here’s what I think; 1.3930 looks like a strong technical level that if broken could push EUR/USD lower or could become a strong support level.

I’m going to watch this level, if spot comes close to this level but a candle closes above it, I’ll buy EUR/USD. If a candle closes below this level I’d look to sell here.

  

Looking at the GBP/USD 4-hour chart we can see an upward channel holding up. Spot looks as though it’s coming close to the lower channel levels.

When I zoom into the 1-hour chart, 1.6147 looks like a support level to watch out for, and spot seems to be running lower at the moment so let’s see if this level gets supported.

Happy Trading!

FxTaurian

an extremely dull monday with some movement in Cable

As expected, it was a completely dull trading day yesterday! We did see a little bit of dollar strength against the sterling and Aussie.

The Euro was a bit of a bore as well. We did hear news yesterday of Moody’s downgrading Greece to B1 with a negative outlook, but didn’t really see the Euro reacting to it. 1.4020 seems to be holding up strongly here as we saw Euro push up but by the end of the session came down to 1.3970.

Cable on the other hand dropped to just below 1.6200. This slip was mainly due to an announcement that Ben Broadbent will replace Andrew Sentence on the MPC.

Again today, we’ve got a quiet line-up of data. So keep a watch for key technical points and ears open for any news that could move the market. Doesn’t seem like we will be seeing much action during the Asian session, so lets see what happens when Europe opens.

Data Today

German Factory Orders - 11am GMT

Happy Trading!

FxTaurian

Quiet start to the week!

Friday price action was pretty much dominated by the NFP and unemployment rate which came in line with consensus. NFP increased by 192k in February. Unemployment rate came down to 8.9%. Looks like this upturn may just be showing signs of US recovery.

Dollar weakened against the euro allowing the euro to break above 1.40.

EURGBP kept the sterling down as it failed to break through the 1.6340 resistance. This week market awaits the BOE rat decision.

Not much data out today, and the morning has been very quiet. Will see what happens when Europe and the U.S comes into play.

Data Today

US consumer credit – 8pm GMT

Happy Trading!

FxTaurian

It's Non-farm payroll time!

Whoa! Did you take a look at the Euro last night! ECB president Trichet fired up the Euro with his hawkish comments last night. Euro took out barriers last night at 1.3950 to a high of 1.3976. Trichet’s use of “strong vigilance could mean a rate hike next month” sparked the rise on the Euro. Economists are now looking for a 25bps hike at the meeting next month!!

The dollar managed to put in a mixed session on the back of its stronger jobless claims data. US nonmanufacturing ISM index rose up to 59.7 as well and we saw the dollar strengthen against the yen.

The USDJPY moved higher on the back of stronger US jobs data and we also saw the EURJPY run up by almost 2 big figures!

Our dear cable got crushed a little thanks to Euro, as a weaker than expected UK services survey and Trichet’s comments propelled the EURGBP higher by more than 100 pips! This also caused the GBPUSD to stay under pressure.

The Aussie too failed to club higher and struggled against the resistance level of 1.0200.

We have non-farm payroll tonight which could bring in some surprises. I’m going to keep it low until then.

Data Today

UK House Prices – 8am GMT

US unemployment rate – 1.30pm GMT

US Non-Farm payrolls – 1.30pm GMT

US factory orders - 3pm GMT

Happy Trading!

FxTaurian

ECB rate decision tonight!

The Fed’s latest beige book and the ADP employment data came out a little bit more optimistic. Fed Chairman Bernanke’s made a statement saying he would not rule of the possibility of a QE3 if conditions deteriorate though that is clearly not his expectation.

Euro rose to a high of 1.3890 last night on growing expectations on a rise in interest rates in the Eurozone before the United States. There’s talk of option related selling ahead of 1.3900. Eurozone PPI came out stronger and will add to the ECB’s inflation concerns. S&P has also said its ratings on Greece and Portugal remain on credit-watch negative.

Sterling rose to a 13-month high versus a weaker dollar on again interest rate rise expectations. The cable was helped by above forecast data from the UK construction sector as well.

This week has been a data-intensive week for the Aussie. It was a mixed bag this morning with the trade balance coming out better than expected but the building approvals came out worse.

Lots of data tonight! Keep a close watch on your trades!

Data Today

German Retail Sales – 7am GMT

German PMI services – 8.48am GMT

Eurozone Services PMI – 9am GMT

Eurozone GDP  - 10am GMT

ECB rate decision – 1.00pm GMT

ECB Trichet's speech – 1.30pm GMT

UK Services PMI -9.30am GMT

US Initial Jobless Claims - 1.30pm GMT

US Non-manufacturing ISM – 3pm GMT

EUR/JPY - cross trade strategy

I see an opportunity on the EUR/JPY cross today!

if i look at the daily chart, there is a strong resistance at 114 level.

when i zoom into the 4-hour chart we can see the EUR/JPY ranging between 114 - 112.

Here's what i plan to do:
I've placed a market order to sell EUR/JPY at 114.
Once that order gets triggered i'll place my stoploss and Take profit order.

lets see how this works out!

Cable and Euro climbing upwards!

Another mixed session for the dollar as it was weaker versus the cable and euro but strong against the yen. The Chicago PMI surprised to the upside yesterday whereas the pending home sales dropped more than consensus. Personal income increased for January, while personal spending decreased.

Euro moved higher towards 1.3860, but formed a double top around the 1.3850 level. Eurozone CPI came down slightly to -0.7 m/m and 2.3% y/y.

The Aussie followed the euro last night as equities made a comeback after profit-taking last week. RBA rate decision can in line with consensus with no changes in the rate.

Sterling too closed yesterday’s session at a high of 1.7279 and has been ranging between the 1.6270 and 1.6300 region (looks like a strong resistance here).

Data Today

UK Nationwide houseprice – 7am GMT

UK manufacturing PMI – 9.30 am GMT

Eurozone Manufacturing PMI – 9 am GMT

German Unemployment – 8.55am GMT

Eurozone CPI estimate – 10am GMT

US ISM Manufacturing PMI – 3pm GMT