Both Currencies Are Strengthening

www.sunbirdfx.com The bearish momentum from last week continued to the first day of the trading week in Wall Street, as the indices shed 1.0%, NASDQ is close to break-down the recent low from the beginning of April, as Dow and S&P already did. The break-down of the previous week's low might indicate for an incoming bearish session of 5% down, but the investors might take this opportunity for shopping, so we might see the bullish reversal soon. USD/CAD The investors will focus on the retails sales in the US and the CPI, which expected to remain unchanged. However, as we keep mentioning, the movement of the stocks rather the fundamental data mainly influences the USD these days. Therefore, and since the stocks keep weakening, the USD is strengthening against the major currencies, ...

www.sunbirdfx.com Wall Street closed a volatile trading week with declines of 1.0% in weekly summary, in spite of improving consumer sentiment data. The bearish momentum spread among the traders after JP Morgan declared a loss of 2 billion dollars and its downgrade by the ranking agency Fitch. On the technical aspect, the indices made retests to the break-down level in each index' daily chart. The S&P broke the important support at 1360 points but corrected up after reaching 1340 points, and the sellers showed up at 1360 several time during the week. Therefore, if the index successfully breaks-through this resistance, it might jump above 1380 points. However, if the bearish momentum continues, the large blend might break-down the recent low at 1340 point and slide towards 1300 points. ...

www.sunbirdfx.com The battle between the sellers and the buyers in Wall Street continued yesterday, as the indices closed on the red territory but made bull candlesticks on the daily chart. The volumes in the US stock markets are higher than average these days, which indicate for the tension among the traders. It looks like the indices are ready for the bullish correction, but the threat of another bearish session still exists. GBP/USD We keep mentioning that the pound is a strong currency that suffered from Wall Street weakening otherwise it would probably trade around 1.65 today. The pair made an accurate retest to the break-up level at 1.65, slide under it, and know it has to overcome this obstacle one more time in order to continue rising. Yesterday's candlestick was a long-tail ...

www.sunbirdfx.com The US stock markets closed yesterday on the green territory as the investors were encouraged by the better-than expected ISM manufacturing data. Dow Jones crossed above the annual highs, but eventually closed under 13300 points after weak finish by NASDAQ that pulled the markets lower. NZD/USD The Kiwi has been moving in a triangle against the USD and its looks like it is about to chose the direction soon. Two weeks ago, the NZD broke through the upper hedge, in what looked like the final battle between the buyers and the sellers. However, it ended as a false-break and the pair resumed trading between the triangle's boundaries. However, the angle of this pattern is getting sharper, which means that the pressure of the buyers will soon meet with the pressure of the ...

The US dollar tumbled vs. its major currency rivals throughout yesterday's trading session, following the most recent economic predictions from the Fed which stated that a new round of quantitative easing could be initiated if US unemployment does not drop further. The EUR/USD shot up to a three-week high as a result of the news, reaching as high as 1.3262. Today, traders will want to pay attention to the US Advance GDP figure, set to be released at 12:30 GMT. A better than expected figure could help the USD rebound vs. riskier currencies, like the euro and AUD. Economic News USD - US GDP Figure May Help Dollar Recover Losses The US dollar fell vs. several of its main currency rivals yesterday, including the euro and British pound. Investors began shifting their funds away from the ...

www.sunbirdfx.com Wall Street corrected yesterday part of the declines from Tuesday on the background of surprising repot by Alcoa. Google (GOOG) will be on the center today, as it will publish the company's results after the market closes. The investors received encouraging data from the federal budget balance that was -198.2B, against expectations of -202.5B. Today they will concentrate on the continuing jobless claims data, PPI m/m and trade balance. NZD/USD None of the currencies has managed to make a significant movement against the other and the pair is actually stamping, as the fact that the 20 EMA moves almost in the same line with the 50 EMA emphasize the situation. There is a simultaneous pressure of both buyers and sellers, as we can see in the daily chart that from one hand, ...

www.sunbirdfx.com The US stock markets close a negative trading week for the first time in several weeks but the strong finish on Friday made a bullish reversal pattern in the indices' daily chart. The S&P 500 gets the support at 1380 points, which we analyzed as an important support it would have to break-down in order to start a significant correction. If the index rises above Friday's high at 1400 points, it might try to cross above the recent pick at 1414 points. However, a break-down of the support could be the beginning of a strong bearish correction. On the fundamental aspect, the employment situation keeps getting better as the continuing jobless claims 348K against expectations for 353K claims. However, the real estate situation is still poor as sales of both existing and new ...

(Reuters) - The dollar gained across the board on Tuesday, lifted by safe-haven demand that was driven by worries about a potential slowdown in China, which hurt both European and U.S. stocks. Global miner BHP Billiton said it saw signs that growth in iron-ore demand was flattening in China, Australia's single biggest export market. That pushed the Australian dollar down more than 1 percent. In addition, China's National Development and Reform Commission raised domestic retail energy prices, effective Tuesday, the second time in less than two months. Even though that still leaves a wide gap between international and domestic prices, investors were concerned that higher energy costs could further undermine an already slowing Chinese economy. "The dollar is gaining because of its safe- ...

www.sunbirdfx.com The US indices made another trading days of new highs, as the technology sector led the markets. On the fundamental aspect, the current account was -124B USD, whereas analysts expected TO -114B. Import prices were down by 0.4%. EUR/USD The improving data of the American economy supports the USD, unlike the Euro, which keeps losing its investors' faith, mainly because of the Greece default. The momentum of the USD against the EUR and other major currencies is not expected to change soon, unless there will be dramatically negative indications regarding the US economy. Today are published the unemployment claims data and Philly manufacturing index, as analysts expect improvement in these both indicators. On the technical aspect, the pair reached the first target that we ...