Pre London Monday

Eur/Usd has made an initial downward move during the first hours of the trading week, before making a double bottom at 1.38561 (bullish diverging macd and rsi on 5min chart) and rising close to its daily high at 1.3882. Gbp/Usd on the contrary has made a very strong dip from last weeks close at 1.59725 down to 1.59352. However, only recently, a bullish 5min divergence on both macd and rsi have lifted it to the 50% of the days bearish retracement to 1.5950. Usd/Jpy rose to a high of 90.36 down to a low of 90.00, swinging up to its 50% downside retrace to 90.15. The Eur/Gbp has made a strong upwards stride to its current high of 0.8703. For the majors, it looks like the Euro is gaining, whilst the Pound and USD might be losing out during this early session. For the commodities, Usd/Cad is rising and Aud/Usd is falling, suggesting a stronger USD for these pairs.

Asian Session Wrap

Euro/Usd, Gbp/Usd, Euro/Gbp and Aud/Usd all made a slide during the first few hours of Sydney, while the USD pairs of the Yen and the Cad subsequently made gains. The initial group made higher lows, but failed to penetrate the days high during Tokyo session. The Usd pairs also consolidated above their opening prices at this time as well.

Premonitionz…

The daily above shows a downwards trendline that intersects the 38.2% and 50% fib retracement of January’s high and low. This week we could see a bounce up to the 1.4238 to 1.4303 region (being the retracements respectively), hence we can see turbulence around this area. A break to the upside would be limited to the months high of 1.4567, or the low could take it further to 1.3800 region (this being last years high-low 50% retracement as well as the 138.2% fib projection of the retracement above.

0wned ><!

During the Asian session, we saw a slight downside bias in the short term to the major and commodity currencies. The long term strong downside trend that was expected to continue during London session didn’t disappoint, however most shorts were profit taking around these levels. During the US session most of the majors with AUD and CAD consolidated. Usd/Jpy however got “skooled” due to the proposed legislation by the US Congress to seprate Investment Banking from Commercial Banking. The DJIA slipped down 200 points, which also drove money away from the USD.
Anyway, getting back to the Eur/Usd, it looks to have settled at 1.4030, and on the hourly chart has just made a smaller intraday high during New York. This could be the start of a ‘pull-back’ before the downside resumes.

A New High for the Week

It’s just after lunchtime in UK time, and we have just seen a sell off in the USD – thus enticing a long position to the risk side. Gold and Euro have both made their highs for the day – the Euro namely surpassing Mondays high of 1.4556. The Euro/Usd minute chart shows the strength of the uptrend, with most of the price staying above the wave ma’s. However, with no clear fundamentals (on the economic calendar that is) supporting this sudden risk appetite, we could see a doji (or slight doji to the upside) day.