Bullish Flag Pattern

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, ...

Forex News and Events: Worries over Europe resurfaced yesterday as weak data, uncertain political environment and questionable support from the IMF all highlighted potential weak spots. The additional $430bn from the IMF fell short of the whispered $600bn that had circulated around the market and the additional funds came with heavy caveats that these funds were not guaranteed to go to Europe. So the lingering questions is under what conditions they might be pointed towards Europe. Meanwhile, the first release of euro-zone budget deficit and government debt figures for 2011 exposed a couple of interesting notes. First the euro-zone budget deficit dropped to 4.1% of GDP from 6.2% in 2010 but this decrease was not enough to stop government debt from climbing to 87.2% from 85.3%. Composite ...

Dukascopy Fundamental Analysis EUR Spain faced increasing borrowing costs during successful sale of bonds with two and ten-year maturity. The country's Treasury sold 1,116 billion Euros of two-year bonds at yield of 3.463% and 1,425 billion Euros in ten-year bonds with yield of 5.743%. Demand for Spain's debt was strong as bids surpassed demand 3.3 times. USD Stock index futures indicated a lower opening on today’s USA session on the EU concerns. Additionally, news from Wal-mart on a possible bribery case had negative influence on stock indices. GBP According to experts from zifx.com, following an extensive rally of GBP/USD, the currency pair is presently overgoing a bearish correction. While the initial support and resistance levels are situated at 1.6037 and 1.6154, respectively, ...

Forex News and Events: Chatter of a possible Moody's downgrade of France soveriegn rating tonight has pushed EURUSD and risk appitite lower. Yesterday, Thomas Jordon was named president of the SNB and was quick to reiterate his unwavering support of the EURCHF 1.2000 “floor”. EURCHF rallied marginally but has since fallen back. We wouldn’t expected much more upside bounce in EURCHF (which was more a function of rumors swirling and the SNB asking about forward prices then it was about the new board) and we dont anticpate a higher repeg. First of all, Jordon becoming SNB president was pretty much a “sure thing” and well priced in. Secondly, while there is greater certainty in policy continuation, it doesn’t change the macro fundamentals at play, mean that storm clouds are again forming ...

The U.S. dollar maintains its earlier gains seen today with the risk-off sentiment taking over the reins anew after china’s data. Specially that Inflation data came no surprise; as prices on the consumer front within the U.S remained almost unchanged; the Consumer Price Index ticked 0.1% lower in March to 0.3% from 0.4% in February, while the core component which excludes food and energy ticked 0.1% higher to 0.2% in line with estimates from 0.1% in February. The USD index is current attempting to retest the breached descending triangle we mentioned previously after completing the awaited retest of the 50-days SMA yesterday. Now a push above 79.60 could extend gains towards the descending resistance of the triangle once more around 79.90 level. The EUR/USD was one of the weakest today; ...

Jobless claims within the U.S rose last week to 380,000; above median estimates of 355,000, while the prior’s week number was revised up to 367,000 hinting a setback in the labor market or at least a pause of the recently seen improvement remains possible. On the other hand, producer price index which is a measure of inflation was steady at 0.0% while the core component which excludes food and energy ticked higher to 0.3% in March from 0.2% in February. In general; we have seen the U.S. dollar benefiting form the upbeat macroeconomic data recently, thus downside surprises on this front shall put the currency under pressure once again. The EUR/USD pair continues to push to the upside since yesterday; however with a sluggish pace forming a bearish continuation flag pattern above 1.3030 ...

The U.S. dollar continues to trade within a range with a slight downside bias, the index is struggling with the short term support of a possible descending triangle pattern around 79.60. a push lower below could send it towards the 50-days SMA and horizontal support around 79.30. In general, the current sideways movement is expected to continue within the upcoming period. The EUR/USD pair has been consolidating within a possible bearish flag pattern; capped from the upside by 1.3155-1.3160 resistance, unless we see a breach above this resistance the downside bias remains in favor, for a possible retest of the recent lows around 1.3030. On the other hand steady trading above 1.3160 could clear the way to 1.3250 potential resistance area. GBP/USD could have formed a short term bottom at ...

The Week Ahead Highlights QE or not QE? BOJ under pressure to ease No more support from the ECB Will the UK avoid a recession? Market Moves: Key Levels QE or not QE? The release of the FOMC minutes earlier this week and speeches by Fed officials have resulted in markets reducing their expectations of additional easing. However, today's disappointing jobs figures (120K in headline NFP vs. cons. 205K) have brought the speculation of more stimulus back into focus. To illustrate the extent of the negative surprise in the NFP print, the lowest estimate was for the addition of 175K payrolls out of the 80 economists surveyed by Bloomberg. QE3 chatter is making its rounds again in the markets and the US dollar has tumbled against most of the majors as heightened speculation ...

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 ...