Forex Market Commentary
EUR/USD is coming to a significant point of resistance with little to stop it at 1.073. Should the Euro land equities market rise today on decent earnings reports then we can expect very little fight back as the EUR/USD could mount a serious breakthrough to fight bavk up to the 1.12 mark. Given that the USD speculators are on a pause with so many net shorts in the market day traders could capitalize and bank some pips with a serious EUR/USD climb back up to the 1.12 mark. the Greece worst has been factored in, the bond differentials have been factored in, but what hasn't been factored into the price is the rising red flags of USD economic slow down and that should give currency speculators some serious food for thought. Although much of the last few days EUR/ USD has been more to do with short covering traders should keep an eye out for volume on the daily charts to see if the specs are actually hunting for entry points to initiate long action on the EUR/ USD given that there's no more fresh positive on the USD. EUR/ USD shorts in the market need to hedge now with call options if they wish to maintain a longer term perspective of USD marching to parity. In the short term we are about to witness a key reversal if the daily volume today and tomorrow reveal spec action on the long side of the EUR/ USD. With FTSE, DAX and CAC all looking for momentum funds will be looking to capitalize on recent USD weakness and any significant currency flow into Euro equities next few days needs to add to the argument for a Dollar reversal.
EUR/USD shorts must be very wary today. Please read this article on Bloomberg published just now and which talks about a major currency speculator hedge fund considering to long the market short term. Traders who are short the EUR/ USD must cover with options if considering a longer term market position. No matter how brief an article the consequences may be far - reaching.
Read on Bloomberg -
http://www.bloomberg.com/news/articles/2015-04-22/hedge-fund-that-made-18-return-on-dollar-gain-now-bets-on-drop
Warning - hedge funds tend to think alike and like many bank prop desks they refer to algorithmic models. That one serious spec is considering long the EUR/USD is just about sufficient time to warn small traders that the giants may lurch the EUR back up given that it is increasingly looking likely that US rates will not climb this year at all and that the USD has grown in value to fast against its major counter parties.
EUR/USD shorts must be very wary today. Please read this article on Bloomberg published just now and which talks about a major currency speculator hedge fund considering to long the market short term. Traders who are short the EUR/ USD must cover with options if considering a longer term market position. No matter how brief an article the consequences may be far - reaching.
Read on Bloomberg -
http://www.bloomberg.com/news/articles/2015-04-22/hedge-fund-that-made-18-return-on-dollar-gain-now-bets-on-drop
Warning - hedge funds tend to think alike and like many bank prop desks they refer to algorithmic models. That one serious spec is considering long the EUR/USD is just about sufficient time to warn small traders that the giants may lurch the EUR back up given that it is increasingly looking likely that US rates will not climb this year at all and that the USD has grown in value to fast against its major counter parties.
Always look to support and resistance band lines as the key to understanding in the long and short term where prices are converging. Professional technical traders use 50 day and 200 day medium and slow moving averages as fundamental cornerstones for interpreting the direction of price action.
USDX
97.968 -0.018 -0.02%
Support 97.372 Resistance 99.112
EUR
1.072795 +0.000360 +0.03%
Support 1.06107 Resistance 1.08547
Crude Oil
56.05 -0.56 -0.97%
Support 54.98 Resistance 58.86
Gold
1,188.6 -1.160 -0.10%
Support 1,191.8 Resistance 1,211.0
Pieter Bergli - DeLoren Trust Holdings
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