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EUR/USD for 2. October

Chart Scale: Weekly/Monthly
Support and Resistence
Indicator used: BB, CCI, Em 200
ATR: 444 Pips
Pair Analysis:
On the weekly the Euro/USD develops strong momentum since the beginning of the year. Prices diverges with Indicators like CCI and Stockastic. Morover eur/usd is in a strong resistence area, it will not be easy from here to move higher if fundamentals really changes. However CCI shows strong momentum which would suggest that the move is not finisehd and it may go sideways in the upcomin…
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EUR/GBP for 1 September

Chart Scale: Weekly, Monthly
Atr Monthly Chart: 329 Pips / 148 Pips
Indicator used: BB, CCI Histogram
Support Resitence 0.75534, 0.88667, 0.99114
Pair Analysis:
Eur is outperforming the GBP in the weekly as well as in the monthy Chart. Since 2015 before the Brexit Vote the Eur rises. Last year it was choppy and sideways. With the rumour of the ecb start tapering the euro has risend the past four month. I think the last High after the Brexit vote should be challened soon. The whole Momentum is no…
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sharpsense avatar

Eur/GBP grow the last 5 days, it is about 150 pips of my target. There should come a Little correction at some point

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EUR/USD

Technical Indicator Used:
horizontal/vertical lines
support/resistence
EMA : 200 , 100
Bollinger Bands
Fundamentals:
US: Rate hike cycle
EU: No tapering
Trends: Weekly, Monthly down / daily up
Eur/Usd is correcting up to ema 200, some change of fundamentals could support this thesis.
Weekly Chart:
Monthly Chart:
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Preparing the Week Ahead


Not only the market it can become very sensitive to the current geopolitical event which is Ukraine, but next week the economic calendar is very hot as we have the FED monetary policy announcement and the Fed peace of MBS and Treasury purchase program. Don't be fooled that recent event like the EM crisis or this geopolitical event can interfere with tapering, FED tapering is already on autopilot and we should see further $10B/meeting reduction in assets purchase and we should see Fed moving fur…
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Convallium avatar

Great blog post!  We should always plan our deal if we want to have profit)

Daytrader21 avatar

Convallium true, trading is all about preparation and execution.

Convallium avatar

Thank you, Daytrader21, I will use it on this week)

jezz avatar
jezz 16 Mar

I'm not sure if Draghi can help. His statements are... without authority, to be gentle. The overall negative exchanges between US and Russia are not helping USD at all. If I were Chinese, I would buy the dollar now :P

Convallium avatar

Thank you, Jezz ,for your vision)  I also try to operate with Chinese and USD)

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Fed's Yellen Speach

Today it seems to be the big day for Janet Yellen as she is due to deliver her first monetary policy speech, as the New Fed Chairman, in front of Congress. I think she will continue with the current Fed's rhetoric that QE program worked and that any further reduction in the bond buying program will be "data depending". The only think we should watch is how she will respond to the fact that unemployment rate is still above Fed target and also the inflation ra
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jezz avatar
jezz 11 Feb

Hm, isn't the text released 90 minutes earlier?

Daytrader21 avatar

Jezz you have sharp eyes:). I have double check it and it's half an hour earlier than what I've posted which means 15:00GMT/10:00ET the same like today's hearing.

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Big Day for US as FOMC decision on Tapering announced

This evening at 19:00 GMT the FOMC will decide whether to keep the Tapering program going,
most traders expect the same rate of buying bonds to continue,
although there are a few doubt surrounding the market due to the latest bad data in US
Fundamentally, a continuation of the tapering program will broadly strengthen the USD
and put pressure on emerging markets - currencies
The US will be sticking to its path that it has set out for a stronger economy
If we look at the technical aspect, a contin…
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FOMC Statement another 10B Tapering?

Right now the question is not if Fed will continue tapering but more how much are they going to taper. Are they going to be more aggressively or will they be very conservative.
If you're asking me I don't think they want to start being aggressively with the recent soft US economic data and beside if they send the wrong message to the market it can easily send the stock market in a sell off, which I'm sure they don't want to be blamed of. More likely they will play it very conservatively and will…
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Why is US Dollar Weak?

Last week we have seen the dollar selling of quite hard against major currency like euro and the yen. Most
likely the market driven theme for the dollar sell of was the lower yields.
We know that lower yields means
a weaker US dollar. So lower yields makes the US dollar somewhat less attractive for investors.
Figure 1 show us the US 10 Year bond Yield which have broken an important trend line that kept in place the
current up trend this may suggest that we may see the 10 year yields going furth…
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Federal Reserve QE Effects on the Stock Market

Since the global financial crisis of 2007–2008 the FED has begin using new type of market policy like Quantitative Easing to try to stimulate economic growth. QE is the same as printing money. Interest rates where already at record-low levels, so in order too pump more money in the economy the central banks around the world where left with only one option to buy assets, usually government bonds, using money it has simply created out of thin air, that's basically what QE means. While the FED was …
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FOMC meeting yesterday changes little

At yesterday's FOMC meeting a lot was said - but traders mostly read between the lines:
good news (but we are not there yet) concerning economic recovery, most members supported tapering last month,
there is a little worry though about deflation which could slow economic recovery or cause new problems
All in all no real reasons to cause new optimism, and the dollar fell slightly after the meeting
The Euro fell quite hard, too - just before the meeting when dollar strength was greatest in anticip…
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HOANG_MAI_NHI avatar

agree with u

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