Signaled An Overbought Condition

(Reuters) - Brent crude oil rose on Thursday for the eighth straight day on Thursday, ending at a six-month high, after Greek leaders agreed to austerity measures to secure a second bailout and avoid an unruly default. U.S. crude rose for a third consecutive session, boosted by the news from Greece and an encouraging dip in the number of Americans filing for unemployment benefits. Freezing weather in Europe, Middle East tensions spawned by Iran's nuclear program and rising violence in Syria provided further support to oil futures. Investors shrugged off a monthly forecast from the Organization of Petroleum Exporting Countries, which reduced its global oil demand growth this year by 120,000 barrels per day to 940,000 bpd, citing the euro zone's debt troubles and higher retail prices. " ...

(Reuters) - Brent oil rose slightly on Tuesday and U.S. crude jumped more than 1.5 percent, bolstered by an unplanned outage at a Canadian oil sands plant and optimism about an agreement on Greece's debt problems. An Alberta plant that processes Canadian oil sands was expected to be shut for two or three weeks, adding lift for U.S. crude and helping narrow its deficit to Brent. Brent's premium to U.S. crude oil widened in early trade to more than $20 per barrel, its highest since October, before a brief but sharp reversal by Brent and a rally by the U.S. contract narrowed the spread back below $18 and left it at $17.82 based on settlements. "The spread got above $20 and it looks like some big players came in and pulled it back, then the dollar fell on expectations a Greece debt deal is ...

(Reuters) - U.S. stocks sagged on Thursday as traders cashed in on red-hot bank and technology shares, while the Federal Reserve's commitment to easy money to help the U.S. economy rebound weakened the dollar. The statement by the Fed, which announced on Wednesday it would probably keep interest rates near zero until at least late 2014 - some 18 months later than the Fed had suggested last year - intensified buying of medium- and long-term U.S. government debt. The yield on five-year U.S. notes hit 0.7538 percent, a low going back at least 50 years. The pullback in bank and tech shares, which have posted double-digit percentage gains so far in January, emerged after a disappointing report on new home sales. Housing-related stocks were among the biggest losers. The sell-off raised ...

EUR/USD Maintains short-term negative tone after today’s opening nearly 100 pips below last Friday’s close signaled fresh weakness. Losses extended to hit fresh 7-month low at 1.3500. Corrective attempt on overextended near-term conditions is under way, with initial resistance at 1.3625 zone, today’s high / Friday’s low, with upside seen limited for now, as near-term indicators are firmly bearish. Below 1.3500 to focus 1.3427, 13 Feb low. Res: 1.3600, 1.3625, 1.3652, 1.3700 Sup: 1.3500, 1.3427, 1.3407, 1.3365 http://mediaserver.fxstreet.com/Reports/325f5b3f-7a7d-4768-8193-afec3573778f/eurusd_20110912073818.gif GBP/USD Continues to travel south after failure to regain 1.6000 barrier, with sustained break below 1.5900, extending losses to post fresh two month low under 1.5800 level. ...

EUR/USD Yesterday’s upside rejection at Fib 50% of 1.4938/1.3968 at 1.4450 zone has triggered strong reversal to 1.4300, where support was found for fresh leg higher. Break above 1.4450 has signaled an end of corrective phase and opened way for extension of the broader uptrend, towards psychological level at1.4500 and 1.4565/85, Fib 61.8% / 06 May highs. Corrective pullback on overbought hourly conditions should be contained at 1.4400/1.4380 zone, to maintain immediate bull tone. Res: 1.4485, 1.4500, 1.4565, 1.4585 Sup: 1.4405, 1.4381, 1.4350, 1.4306 GBP/USD Remains in a near-term downtrend, following an upside rejection at 1.6545, with subsequent 3-leeged pullback extending losses to 1.6300 zone, Fib 50% retracement of 1.6057/1.6545 upleg. Bounce above 1.6400 was short-lived, as ...

Wednesday's relatively thin market conditions have apparently granted support to the euro and other commodity-linked currencies. Tensions appear to be easing in regards to recent flare-ups in debt woes in the US and Europe, which have helped temper risk aversion in the market and pull down on safe havens like the USD. Economic News USD - USD Drops after Existing Homes Sales Data Boosts Risk Appetite The US dollar lost some ground yesterday as positive figures from the existing home sales data helped generate risk appetite. This shift in sentiment has spurred a rebound in higher yielding currencies like the euro, British pound, Swiss franc and Canadian and Australian dollars as traders pulled out of safe havens and into currencies with slightly higher yields. Wednesday's relatively ...

The Dollar surged in value versus the euro after the Federal Reserve surprised the forex market late yesterday by raising a key interest rate. This may be the first stage in rolling back its stimulus packages enacted during the financial crisis. Economic News USD - Dollar Soars after Fed Interest Rate Change Just after the close of New York trading, the Federal Reserve released a statement saying it would increase the discount rate it charges banks to 0.75% from 0.50%. This is a key interest rate the Fed uses for overnight lending to banks. Also included in the statement was the Fed's position that this change should not affect interest rates and financial conditions for households and businesses and is not a change in the outlook for the economy or for monetary policy. Immediately ...