Harsh realities are once again setting in on Monday, with any positive reaction from the announcement of the EU/IMF Greek deal having faded as market participants grow more fearful of additional debt problems in other Eurozone economies, and the social unrest expected in Greece as a result of the latest deal.
Eur/usd - 1.3357 ... The single currency retreated in European morning to 1.3345 on renewed concerns over Greece's debt problems as Greek/German 10-year govt. bond yield spread rose to new 12-year high of 687 basis points. Offers by European names are tipped at 1.3375/80 n 1.3400 with stops seen abv 1.3420 n 1.3450. On the downside, bids are located at 1.3320/30 n 1.3300 with stops building up below 1.3290. http://www.acetraderfx.com
Filed under Latest FX Articles · Tagged with bond yield, debt problems, forex market, single currency, yield spread
EURUSD Weekly Summary:
The EURUSD started this week with strong bullish momentum on Monday, opened more than 100 pips higher than last week closed price after Greek bailout plan. However, the bullish momentum failed to maintain the gain as price found a good resistance at 1.3691 and whipsawed to the downside, closed lower at 1.3508 after bottomed at 1.3472 on Friday. It's clear to me that the EU failed to convince the market regarding Greek financial and debt problems. They brought the IMF in for rescue. They announce the 30 billion loans for Greek. But still, the Euro failed to use this positive events to gain significant momentum. For me, this could be a bad news for the Euro. Technically speaking for the upcoming week, immediate support is seen at 1.3450 area. Break below that area should trigger further bearish momentum re-testing 1.3267 key support area even testing 1.3100. On the upside, 1.3691 area remains the key resistance level at this phase. Break above that area should trigger further bullish momentum targeting 1.3830 area.
Have a great weekend and see you guys next week :)
The EURUSD started this week with strong bullish momentum on Monday, opened more than 100 pips higher than last week closed price after Greek bailout plan. However, the bullish momentum failed to maintain the gain as price found a good resistance at 1.3691 and whipsawed to the downside, closed lower at 1.3508 after bottomed at 1.3472 on Friday. It's clear to me that the EU failed to convince the market regarding Greek financial and debt problems. They brought the IMF in for rescue. They announce the 30 billion loans for Greek. But still, the Euro failed to use this positive events to gain significant momentum. For me, this could be a bad news for the Euro. Technically speaking for the upcoming week, immediate support is seen at 1.3450 area. Break below that area should trigger further bearish momentum re-testing 1.3267 key support area even testing 1.3100. On the upside, 1.3691 area remains the key resistance level at this phase. Break above that area should trigger further bullish momentum targeting 1.3830 area.
Have a great weekend and see you guys next week :)
Filed under Latest FX Articles · Tagged with bailout plan, debt problems, Downside, pips, resistance level
The forex markets are giving in to widespread fear about the Greek debt. We are seeing a full market reaction a perfect risk aversive behavior, with one huge loser EUR/JPY. Will it continue plunging?
Growing worries about the never ending Greek debt problems are strongly reflected in the market. I wrote about the 3 reasons why EUR/USD will be hit hard this time. So, the Euro, the currency used in Greece, continues to fall. The failure of European leaders to end this crisis sends EUR/USD toward the 2010 low of 1.3267. But the Euro is not alone:
The currencies that benefit from fear are the US dollar and the Japanese Yen. The dollar is rising across the board. The British Pound is dropping despite excellent figures from Britain A strong rise in prices, as seen in the Halifax HPI and a 1.3% rise in Manufacturing Production, double than expected, are only enough to ease the fall.
USD/CAD parity that was reached earlier this week, is fading away. The pair is getting close to 1.01 despite having all the reasons to fall. Also the Australian dollar, which got good (though expected) job figures is dropping on the dollars strength.
Read the rest of the article about EUR/JPY.
Growing worries about the never ending Greek debt problems are strongly reflected in the market. I wrote about the 3 reasons why EUR/USD will be hit hard this time. So, the Euro, the currency used in Greece, continues to fall. The failure of European leaders to end this crisis sends EUR/USD toward the 2010 low of 1.3267. But the Euro is not alone:
The currencies that benefit from fear are the US dollar and the Japanese Yen. The dollar is rising across the board. The British Pound is dropping despite excellent figures from Britain A strong rise in prices, as seen in the Halifax HPI and a 1.3% rise in Manufacturing Production, double than expected, are only enough to ease the fall.
USD/CAD parity that was reached earlier this week, is fading away. The pair is getting close to 1.01 despite having all the reasons to fall. Also the Australian dollar, which got good (though expected) job figures is dropping on the dollars strength.
Read the rest of the article about EUR/JPY.
