Barriers And Signal An End

Fundamental Analysis EUR "Fears of a Greek exit from the euro zone and the negative consequences from that are prevailing" - Ben Kwong, KGI Asia European stocks edged lower after Fitch downgraded Greece’s credit rating to ‘CCC’, implying that the country is vulnerable and highly dependent on favourable economic conditions to fulfill its financial obligations. USD "If there were scope to do another twist of some type it would be prudent to consider it, especially in the scenario where things are worse and the Fed feels like it needs to move" - Nathan Sheets, Citigroup Inc. Fed policymakers might potentially launch another round of Operation Twist rather than a direct asset purchases in case of increased risks or further weakening of the US economy. GBP "We must work together to give ...

After the deep selloff markets recover some of earlier losses triggered by fears of “Grexit”, after politicians failed to find a common ground and name a new coalition government. Meanwhile Angela Merkel in an interview with CNBC reiterated following many European politicians “I want Greece to stay in the Euro” giving markets a minor relief, and a reason to rebound in a normal pullback after being oversold. The EUR/USD decently off lows, the pair has traded the lowest since January today at 1.2680, and currently trading around 1.2750. Meanwhile, U.S. housing sector continues to show recovery, as building permits fell to 715,000 last month, however March permits were revised upward to 769,000. Housing starts rose to 717,000 units, while March reading of 654,000 was revised to 699,000. On ...

EUR/USD The single currency spirals lower after yesterday’s break below 1.2800 handle and longer-term bull trendline at 1.2770 and today’s loss of the last obstacle at 1.2700, towards 1.2622, January’s yearly low. Negative sentiment keeps the pair under heavy pressure and despite short-term studies being at their extreme levels, the price action continues to increase the pace of descending. Break below 1.2622 to open 1.2586 Aug 2010 low next, with 1.2000/zone expected to come in short-term focus. Initial resistance lies at 1.2720, with more significant barriers at 1.2800/15 and 1.2868. Res: 1.2700, 1.2720, 1.2800, 1.2815 Sup: 1.2622, 1.2586, 1.2550, 1.2500 GBP/USD The pair accelerated losses after losing key supports at 1.6050 and 1.6000, with break below 55 day MA at 1.5959, looking ...

EUR/USD Extension below 1.2900 support that was lost yesterday, posted fresh 5-month low at 1.2813, overnight, just ahead of figure support at 1.2800. Negative structure sees potential for further weakness, with yearly low at 1.2622 now coming in focus. Any bounce higher, as hourly studies are in oversold territory, is for now seen as corrective, with strong barrier at 1.2900, previous low / 20 day EMA, while only lift above 1.2955/80 would delay bears. Res: 1.2860, 1.2880, 1.2900, 1.2955 Sup: 1.2813, 1.2800, 1.2762, 1.2700 GBP/USD Maintains near-term corrective tone off 1.6050, yesterday’s low, with brief break above 1.6100 handle and 1.6080 zone holding the downside for now. Clearance of 1.6130 zone, yesterday’s high / 55 day EMA / Fib 61.8% of 1.6181/1.6050 downleg is required to ...

EUR/USD The single currency extends its near-term weakness off 1.3282, yesterday’s high, where short-term rally was limited, just ahead of key barrier at 1.3290/1.3300. Brief consolidation above initial support at 1.3200, was short-lived, as more negative data from Eurozone, increased pressure on that pair. Near-term studies weakened further, as the price broke below 1.3200/1.3172 supports, with immediate focus at 1.3157, 27 Apr low and 1.3138, 50% retracement of 1.2993/1.3282 upleg, ahead of more significant support at 1.3100, 23 Apr low / Fib 61.8%. Previous support at 1.3200, now reverts to initial resistance. Res: 1.3200, 1.3232, 1.3243, 1.3269 Sup: 1.3157, 1.3138, 1.3123, 1.3100 GBP/USD Commences the third leg of reversal from 1.6300, 30 Apr fresh 8-month high, after initial ...

EUR/USD Returns to 1.3150, previous support, after reversal from Friday’s peak at 1.3223, found support at 1.3100 zone, also 50% retracement of 1.2993/1.3223 upleg. Overnight’s trading was moving within very narrow range and in a sideways mode. Fresh momentum on hourly chart sees potential for break higher, as price holds above hourly 20/55 day EMA’s, with immediate resistance at 1.3170 zone, previous highs / Fib 61.8% of the latest fall, break of which to confirm higher low and re-focus key near-term hurdle at 1.3223. Still weak picture on a daily chart sees 1.3200/23 zone as strong barriers, as the price action remains trapped between 55 day MA on the upside and 90 day MA on the downside, currently at 1.3200 and 1.3113, respectively. Res: 1.3170, 1.3180, 1.3200, 1.3223 Sup: 1.3144, 1. ...

EUR/USD The pair starts the week at the back foot, following last week’s strong gains off 1.3000 base that slightly exceeded previous peak at 1.3211. Overnight’s gap lower opening sees potential of corrective action, as hourly studies are pointing lower. Initial supports lie at 1.3170/60, ahead of 1.3140 zone where 55day EMA and Fib 38.2% of 1.2993/1.3223 ascend should contain dips to keep bullish short-term structure intact. Only loss of 1.3110, 90 day MA and 1.3100, figure support, would weaken the structure. Immediate resistance lies at 1.3223, last Friday’s peak, ahead of 1.3235, Fib 61.8% of 1.3385/1.2993 descend and 1.3250/77, 29 Mar / 02 Apr lows. Res: 1.3200, 1.3211, 1.3223, 1.3235 Sup: 1.3170, 1.3160, 1.3140, 1.3120 GBP/USD Remains in a steady uptrend from last week’s low at ...

EUR/USD Short-term price action remains within 1.3000/1.3250 range, moving in a sideways mode and trading around 1.3100 handle for most of the time. Studies on lower timeframes hold neutral tone, with overnight’s trade being entrenched within 30-pips range. Immediate upside barriers lie at 1.3140 and 1.3170 and strong resistance at 1.3200, bear trendline / 55 day MA, capping the short-term action. Yesterday’s low at 1.3056 offers good support, ahead of key one at 1.3000. Release of data from Spain and US later today would likely trigger more action. Res: 1.3140, 1.3171, 1.3200, 1.3211 Sup: 1.3104, 1.3090, 1.3056, 1.3032 GBP/USD Maintains short-term bullish tone, after 200 day MA and main bull trendline off 1.5233, contained the recent dips. Fresh rally cleared initial barriers at 1. ...

(Reuters) - The euro fell for a second straight session on Wednesday as euro-zone debt worries mounted one day ahead of a bond sale in Spain, seen as a test of Madrid's capacity to grapple with financial and budgetary pressures. Spain is the fourth largest euro-zone economy, and some investors worry its financing troubles could lead to problems in healthier economies in the region. The euro was further pressured by a rise in sterling, which posted the biggest gains among the major currencies. The British pound rallied after minutes showed the Bank of England expressed concern that high inflation could persist into the medium term. One BoE policymaker, for instance, dropped his long-standing call for more stimulus. The fall in Spanish shares also weighed on the euro. Some strategists ...