Descending Resistance Of A Bullish

EUR/USD Extends the near-term recovery above initial barriers at 1.2750 zone, after temporary footstep was found at 1.2640, last Friday. Bounce from here briefly broke above 1.2800 barrier, also Fib 23.6%, where descending trendline, connecting 1.3282/1.3177 tops, limited gains at 1.2811, with corrective easing on overbought hourly studies under way. Dips need to be contained at 1.2760/40 zone, to maintain positive near-term tone for possible fresh attack at upper barriers. Lift above 1.2800, to face significant resistances at 1.2886, Fib 38.2% and 1.2900 zone, clearance of which to confirm near-term base and open way for stronger retracement of 1.3282/1.2641 downleg, with 1.2950/80 seen next. On the downside, loss f 1.2740 and psychological support at 1.2700, would turn focus lowercase ...

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 ...

www.sunbirdfx.com Another day of uncertainty went through Wall Street, as the investors were disappointed by the core retail sales, but encouraged by the Empire State Manufacturing Index. Today they will focus on the FOMC meeting minutes and building permits, as bad news might cause sharper declines. We keep seeing bullish reversals during the trading session, which means that there are buyers who want to take advantage of the recent declines, which might cause a bullish reversal eventually. However, it seems that a break-down of the current week's low will make everybody believe that a downtrend movement has begun. USD/JPY The USD reached the support at 79.50 against the JPY, which was a former break-up area. The Yen has failed to break-down this support for several days and ...

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. ...

The EUR/USD maintains the bearish tone; trading below the key 1.3000 handle. The overall bearish sentiment that was triggered by the political scene in France and Greece continues to dampen risk appetite, while markets await any development in the government creation process by the Greek political parties. The pair is fluctuating within a relatively narrow range today, below 1.3000, where if the week ends below this pivot, further downside will be very likely; in an attempt to resume the overall bearish trend eying a retest of 2012 low at 1.2625. Intraday rallies should find resistance below 1.3000, as a break above it could extend corrections to 1.3080. The British pound is being hit, the GBP/USD pair is heading to retest the key support at 1.6060. Meanwhile the overall bullish ...

Jobless claims came below market expectations at 367,000; 5,000 below consensus and 1,000 below last reading. Meanwhile, the trade deficit continued to widen printing $51.8 billion in March from $46.0 billion February. Markets maintained the volatile stance, however with a slight upside bias today. The EUR/USD is pushing towards the key previous low and resistance level around 1.2975-1.3000 area, where the resistance is expected to show robustness in the near term, and further downside attempts towards the recent low at 1.2909 seem likely within the upcoming sessions, although a break above 1.3000 could extend the bullish correction towards 1.3075. The GBP/USD rallied after the BOE decision, officials decided not to give the economy another dose of cash injection despite the ailing ...

The U.S. economy created 115,000 new jobs in April, below market consensus of around 170,000 and the last month’s revised up reading of 154,000. Meanwhile, unemployment rate ticked lower to 8.1% from 8.2% on a declining labor force of nearly 350,000 workers. Earnings dropped as well, printing zero percent growth. The figures all indicate a sluggish employment recovery, hinting the economy is still far from normal employment levels of pre-crisis times. Thus, we may see further pressure on the U.S. dollar as QE3 expectations could build up. The EUR/USD pair has been trading in narrow range since morning and before the NFP, however the pair is currently attempting to regain upside momentum on a weaker dollar, a retest of 1.3175 resistance is possible now, and a break above could lead to 1. ...