Sep 22, 2011

Forex Crunch EUR/USD Dives to 7 Month Low – Approaches Critical Support

Forex Crunch EUR/USD Dives to 7 Month Low – Approaches Critical Support

EUR/USD Dives to 7 Month Low – Approaches Critical Support

Posted: 22 Sep 2011 05:14 AM PDT

After some struggle, support at 1.35 was lost and EUR/USD is diving to levels last seen in back in February 2011. The final push came after Industrial New Orders fell more than expected, but the biggest engine for the fall is Ben Bernanke.

Euro/dollar fell below the September 12th swing low of 1.3495, and the move accelerated from there, down to 1.3475. The break still needs to be confirmed. Support at 1.3440 is very important. It’s getting quite close.

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AUD/USD Elliott Wave: A Free Fall?

Posted: 22 Sep 2011 05:14 AM PDT

OK, we have seen enough, AUD/USD is not falling in wave (v) as we firstly thought, but its more likely in wave (iii).

Why!? Its because of the price action personality, which helps us to label the chart in a correct way. In wave five you will tend to see slow moves with decreasing volumes and divergence on a lot of oscillators/ indicators.

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French Bank Woes Add to Euro Pressure

Posted: 22 Sep 2011 03:06 AM PDT

The news just keep pouring in. French banks are under immense pressure as the voices that talk about recapitalization of the banks are becoming very loud and very scary. 

EUR/USD is now testing low support at 1.3440 – an important line separating ranges. Here are three fresh updates from the French front.

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EUR/USD Challenges Lows on Weak European PMIs

Posted: 22 Sep 2011 01:04 AM PDT

Purchasing managers’ indices in the euro-zone fell short of expectations, with the services sector in the whole region being the biggest disappointment. This gave the euro another push down, extending the big losses that followed Bernanke.

EUR/USD made a dive from almost 1.38 to 1.3570 after Bernanke announced Operation Twist but nothing else. and traded between 1.3530 and 1.36 afterwards. The consolidation now gives way to fresh falls although support is strong here, close to the lowest level in 7 months.

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USD/CAD at Highest in 2011 Following Bernanke

Posted: 22 Sep 2011 12:21 AM PDT

The Canadian dollar made a big retreat against the US dollar after the Federal Reserve didn’t deliver extreme monetary stimulus. 

The market was looking for more than Operation Twist in order to boost “commodity currencies” such as the loonie. When will it go from here? Update.

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Fed move meets with disappointment

Posted: 22 Sep 2011 12:03 AM PDT

Last night, the US Fed decided to launch the much talked about 'operation twist', designed to push down longer-term interest rates by selling their short-dated holdings (less than 3 years) and investing in longer-dates bonds (6 to 30 years).   Compared to what was expected, the market moved on from this around three weeks ago as many were looking for either QE3, or a strong indication that it was being considered.  There were neither, which is why we've seen the dollar rise (on general risk aversion plays) and Asian stocks sell off. 

The disappointment is also being registered in the typical risk plays, with the Aussie down nearly 2% since last night (AUD/USD flirting with parity) and the yen proving to be the more resilient on the majors.  The intention is that borrowing costs are lowered for businesses and households, via the decline in longer-dated Treasury yields.  This is no panacea though.  The US ten year is already at 1.80%, so the downside is starting to look limited and short-term borrowing costs could well increase.

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EUR/USD Sep. 22 – Trying to Stabilize After Bernanke’s Blow

Posted: 21 Sep 2011 11:45 PM PDT

Euro dollar is settling in low ground after the big blow it got from the action and especially the inaction by the FOMC. Today’s busy calendar could open the door for more falls. 

Here's a quick update on technicals, fundamentals and what's going on in the markets.

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Bernanke Announces $400 Billion Twist – Dollar Rises

Posted: 21 Sep 2011 03:11 PM PDT

The Federal Reserve announced Operation Twist at a scale of $400 billion by the end of June 2012. This means no additional dollar printing – no QE3. They also fell short from announcing more measures such as lower rates on excessive rates.

The initial reaction is a stronger dollar. EUR/USD is down but slightly rebounds. The market is still digesting. This might change later, although the probability is not very high. USD/JPY is on the rise, moving to 76.50, away from the intervention zone.

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GBP/JPY At All-Time Low – Bernanke Slays the “Dragon”

Posted: 21 Sep 2011 03:10 PM PDT

The dragon surrenders and loses its firepower. GBP/JPY is now at 118.53, under the previous all time low of 118.90 set back in January 2009. Ben Bernanke slayed the “dragon”, which was already weakened by his counterparts in London.

From here, there is a lot of room to fall in uncharted territory.

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Forex Daily Outlook – September 22 2011

Posted: 21 Sep 2011 02:00 PM PDT

US unemployment claims and Canadian retail sales are the major events this day. Let’s see what awaits us today.

In the US, Unemployment Claims the number of Americans filing their initial unemployment claims increased more than predicted to 428,000 from 417,000 in the preceding week indicating uncertainty in the job market. A drop to 419,000 is predicted now.

Read the rest of the article Forex Daily Outlook – September 22 2011
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