Aud/usd To Squeeze It Lower

www.sunbirdfx.com Wall Street opened the trading week on mixed territory as Dow closed negative NASDAQ and S&P closed positive. On the beginning of the day it looked like the indices were about to continue the bearish momentum from Friday after sharp declines in Europe and Asia. Eventually, the indices managed to rise and close around Friday's closing levels. The S&P 500 opened the trading session around 1360 points, which is the lower boundary of the channel it is moving through and as we mentioned yesterday, the index might continue stamping between 1360 points and 1400 points for a while. AUD/USD The crash of the US futures and the European & Asian markets during yesterday morning caused large gaps in most of the currencies pairs, as the USD strengthened due to these declines. Later, ...

www.sunbirdfx.com Wall Street made a strong trading day, as indices rose 1.6% on the background of good reports by IBM and Goldman Sachs. This sharp short-squeeze was expected after the mixed trend on Monday in which NASDAQ was the only index that traded on the red territory, and therefore the markets rose sharply when NASDAQ started climbing. AUD/USD As we keep mentioning almost every day, the results season makes the USD extremely volatile and it changes direction in short periods. The rising of the stocks weakened the American dollar against most of the major currencies, but as stated, this might change according to the stocks behavior. The pair AUD/USD reached the resistance of the uppers boundary of the channel, which we have been analyzing for several weeks. If the current pattern ...

www.sunbirdfx.com As we estimated in the recent analysis, the US stock markets made the bearish correction as indices shed 1.5% yesterday. However, we also mentioned that it would not be wise to open many short positions since the general trend is still bullish and the correction yesterday might give the indices space to make another bullish session. Nevertheless, if the indices keep falling, the S&P 500 might close the gap at 1325 points, which was opened last month. The ADP Non-Farm Employment Change, which is prior to the official data on Friday, is published today. AUD/USD The negative correlation between the US indices and the US dollar caused the strengthening of the USD yesterday and the American dollar will probably continue rising as long as the shares lose altitude. The ...

Fundamental Analysis EUR "We expect the Greeks to rise to their responsibilities. This coming Monday, we will see whether Greece delivers or whether we will be forced to decide on another course of action, one that is not desired" - Steffen Kampeter, German Deputy Finance Minister The Euro rose against the US dollar and the Yen on Friday on hopes Greece was nearing a deal to secure a new rescue package despite rising worries about the ability of Greek leaders to rule the debt crisis. USD "We are seeing upward momentum in prices of food and other commodities that producers can’t pass along to consumers because consumers are still very fragile" - Lindsey Piegza, an economist at FTN Financial The Consumer Price Index (CPI) climbed 0.2% in January slightly below analyst median forecasts of ...

(Reuters) - The euro held steady in Asia on Tuesday as markets remained sanguine that Greece will eventually clinch a rescue package, even as the country's political leaders delayed their decision to accept painful terms by yet another day. Failure to secure the 130 billion euro ($170 billion) rescue would risk pushing Athens into a chaotic debt default and destabilize the entire euro zone, an outcome deemed too extreme to contemplate. That was seen keeping euro bears restrained for now at least, resulting in a volatile but resilient single currency. It stood at $1.3122 on Tuesday, little changed from late New York levels. A recovery from $1.3026 overnight kept the common currency within reach of a six-week peak around $1.3230 set last week. Only a clear break of $1.3020 would see the ...

www.sunbirdfx.com The US stock market opened the trading week on the green territory and it looks like the indices are getting prepared to another strong break-up. However, they might correct before that break-up occurs, since they reached strong resisting areas and the directional indicators shows an overbuying situation. The results season for the 4th quarter started yesterday with the reports of the aluminum producer Alcoa (AA). The earning seasons tend to be volatile especially in days where important firms report, and it will probably affect the forex market in the next few weeks. USD/CHF Last week we estimated that the support of 0.93 was strong enough and the USD would rise from this level. We brought-up the trade-idea of opening a long positing in case the price crosses above 0. ...

www.sunbirdfx.com The investors can finally take a breath after that Wall Street has closed the second trading-day of the week with sharp risings. This jumping was expected, since the indices closed large gaps on Monday, and they usually change direction after they close the gaps. The main trigger for this rally was the short-squeeze phenomenon, in which the short position holders had to cover (buy) their position in any price they could get. USD/JPY The pair has been trying to break through the resistance at 78.0 for several weeks, but failed in breaking it so far. The 20 EMA has crossed above the 50 EMA few weeks ago, which was a bullish signal for the pair. Now, the 20 EMA is supporting the price and the pressure of the buyers is increasing. Today is published the interest rate in ...

The Week Ahead Highlights EU Summit deal doesn't solve debt crisis Market reaction is puzzling Plenty of risks remain EU Summit deal doesn't solve debt crisis The much-anticipated EU Summit delivered on the basics of establishing new fiscal rules to prevent a future debt crisis, but has failed to resolve the near-term debt crisis, namely how will troubled European governments maintain their debt service if credit markets turn on them again? The EU agreed to provide an additional EUR 200 bio to the IMF in the form of bilateral loans, providing a bit more of a back-stop to the under-powered EFSF and ESM. Proposals to increase the size of the ESM were put off until March. On Thursday, ECB Pres. Draghi shocked markets by indicating the ECB had no plans to increase its ...

The most recent CFCT IMM data shows EUR non-commercial traders have their largest short position built in the futures market since June of last year. The one sided positioning could create a short squeeze if European leaders begin to instill a bit of investor confidence towards the end of the week. Economic News EUR - Positioning for the ECB Press Conference/Economic Summit The EUR is shrugging off the recent negative headlines as investors begin to position themselves prior to the ECB policy meeting on Thursday and the 2-day EU economic summit. Market expectations are for at least a 25 bp interest rate cut and some are calling for a 50 bp reduction in ECB interest rate. The rate decision will come 45 minutes before the main event which is the ECB press conference. Investors will be ...