Triangle On An Hourly Chart

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 ...

Forex News and Events: Today traders will be watching development in Europe as Spanish yields continue to rise and investors remain skeptical that Prime Minister Rajoy can bring the nations deficit under control. Rajoy was quoted as saying “Spain is in an emergency situation.” Yields on Spanish 10 year sovereign debt rose to 5.79%. In addition, there is regional contagion worries as concerns are also spilling over into Italian debt (5yr +17bps today). And despite strong rhetoric, investors have not ruled out Spain joining Greece, Portugal and Ireland in seeking an international bailout. No helping to ease concern, Spanish economic minister Guindo declined to rule out a possible need for a rescue. Although he did go on to mention that Spain had covered almost 50% of 2012 financing needs. ...

Fundamental Analysis EUR "Spain is facing an economic situation of extreme difficulty" - Mariano Rajoy, Prime Minister of Spain Demand for Spain’s debt tumbled on Wednesday and the nation only sold 2.59 billion euros of bonds, just above the minimum amount it planned. The average yield on five-year bonds rose to 4.319 percent from 3.376 percent the previous month. USD "Demand for Spain’s debt tumbled on Wednesday and the nation only sold 2.59 billion euros of bonds, just above the minimum amount it planned. The average yield on five-year bonds rose to 4.319 percent from 3.376 percent the previous month" - Ryan Sweet, a senior economist at Moody’s Analytics Inc. The number of Americans claiming for unemployment benefits declined slightly to 357 thousand in the week ended March 31 from ...

Forex News and Events: We are clearly in a holiday trading mode, with the last stop being tomorrows NFP. We suspect FX will be range bound as trade wait. Yesterday in the US, the ADP survey indicated that private sector payroll employment increased by 209k vs. 206k exp. in March. This number is consistent without the recent improvements in the labor market and suggests a NFP read above 200k. On the other hand, the ISM non manufacturing index came in below forecasts at 56.0 vs. 57.3 exp. The slight downtick shouldn't be of real concern since the drop only revised abnormally large increases in the past few months. Still supporting the good Friday NFP was the underlying employment index, which rose to 56.7 from 55.7. While the USD continues to benefit from relative growth expectations, we ...

Forex News and Events: The residual risk appetite remaining from the agreement on the second Greek bailout package, slowly dissolved as the day progressed. With a lack of fresh news, the markets focused on the Eurozone PMI number that generally disappointed. The primary concern was the French and German PM,I which indicated that conditions in the Eurozone's core country had marginally deteriorated in February. Eurozone new industrial produce did come in a bit stronger than expected, but the underlying remains a bit worrying as y/y figures remain negative, while m/m had a volatile reads in Sept and Nov. and is unpredictable. Obviously, these latest reads highlight the fragility of the region and calls into question how quickly the Eurozone will be able to reverse the contraction ...

Fundamental Analysis EUR 17-nation currency slipped against most of its peers before Greece's PM Papademos meets with politicians from three leading parties as officials still cannot agree on debt reduction plan. The meeting scheduled on Tuesday. Greece representatives and creditors still have to agree on EUR 600 million of fiscal measures for this year. Euro declined 0.2% to USD 1.3109 in London trade. Currently EUR/USD is trading at USD 1.3116. USD US President Obama ordered to freeze all Iran's central bank and governments assets deposited in US or in any overseas branch of US entity, announced the White House today. President Obama claimed Iran current activities to be a serious threat to international financial system. Before the order, only assets owned by sanctioned Iranian ...

Forex News and Events: It’s another non-farm payrolls Friday, and in typical fashion the FX markets are subdued with few participants willing to commit to big bets ahead of the risk event. Despite dropping to new 15-month lows in the Asian session, EURUSD has managed to recover its losses early in the European session, and is now loitering around the 1.2800 mark. The December non-farm payrolls are due at 13:30 GMT, and markets are now looking for an increase of 155k compared to 120k seen the month prior. It is possible that expectations for today’s payrolls are even higher than these estimates after yesterday’ ADP employment change smashed expectations at 325k in December (versus 178k expected, 206k prior). Nevertheless, even though the magnitude of that upside surprise is large, we ...

EUR/USD The pair returns to weakness after yesterday’s gains spiked to 1.3200 barrier, but failure to break higher resulted in sharp reversal that nearly fully erased rally from 1.3000. Temporary support was found at 1.3024, with fresh attempt higher facing initial resistance at 1.3084, yesterday’s intraday high / 16 Dec high. Break here and 1.3100 is required to resume higher for possible retest of 1.3200, however, lack of momentum on 4H studies, may limit gains for now. On the downside, 1.3024 offers initial support, ahead of strong 1.3000 zone support, where also bull trendline off 1.2945 low lies and break below here and next support at 1.2980, to confirm lower top at 1.3200 and trigger fresh weakness towards 1.2945, with key m/t support at 1.2872 in sight. Res: 1.3084, 1.3100, 1. ...

EUR/USD Remains in near-term consolidative mode, moving in a narrow range around 1.3000 level. Dips were contained at yesterday’s low at 1.2980 zone, signaling possible basing attempt, ahead of stronger correction of the latest steep decline from 1.3547, 02 Dec lower high. Daily studies, approaching oversold zone, would support bounce. Hourly neutral to positive outlook, sees scope for test of initial barrier at 1.3042, ahead of key near-term barrier at 1.3084, 16 Dec high, also near Fib 50% of the 1.3235/1.2945 downleg, break of which is required to spark an extension towards 1.3100 and next strong resistance at 1.3145, 04 Oct low. On the downside, loss of 1.2980 zone to expose 1.2945, loss of which would accelerate losses and focus key med-term support at 1.2872, annual low, posted on ...