Market Analysis

06/27/2011 - 11:13
Famous billionaire investor George Soros claims that the euro area will have no choice but to develop a mechanism that would allow weaker economies to exit the monetary union as these countries will inevitably need to abandon euro. According to Soros, the risk that Greek crisis will spread and contaminate other European nations is high. The specialist underlined that the financial system remains extremely vulnerable. Soros says that the crisis in Europe is still developing. In his view, the...
06/27/2011 - 10:26
Technical analysts at Commerzbank claim that the single currency is consolidating versus the greenback above support at 1.4113.  Then, in their view, the pair EUR/USD will go down towards 1.4017 (200-week MA), 1.3968 (recent minimum) and 1.3860 (200-day MA). If euro closes below this zone of support, it will drop to 1.3570/1.3620. According to the bank, resistance levels are found at 1.4365, 1.4500/69 (6-week downtrend) and 1.4732 (78.6% Fibonacci retracement). Chart. Daily EUR/USD
06/27/2011 - 09:24
Weekly USD/CHF On the weekly chart there’s some consolidation – during the past month the pair USD/CHF was staying 0.8320 and 0.8550. In addition, the Standard line which indicates the longer term trend became horizontal (2), though the short-term Turning line (1) keeps declining. The lines that limit the Ichimoku Cloud – Senkou Spans “B” and “A” are also going down. Chart. Weekly USD/CHF Daily USD/CHF On the daily chart the prices went down below the Turning line (1) that is now once again...
06/27/2011 - 09:22
Weekly USD/JPY On the daily chart the pair is still facing resistance of the Turning line (1) and the Standard line (2) and Tenkan-sen keeps moving down to Kijun-sen. In addition, the greenback remains under pressure of the bearish Ichimoku Chart (3). As the same time the pair USD/JPY, as it was expected, began consolidating. A week before last there was an inverted “hammer” and now we’ve got the bullish confirmation. As a result, it’s possible to assume that last week US dollar will try to...
06/27/2011 - 09:20
Weekly GBP/USD Last week turned out to be very negative for the British currency – the pair GBP/USD lost almost 200 pips breaching the Standard line (2) which remains horizontal. The short-term trend has turned bearish – the Turning line (1) reversed down. It’s also necessary to note that the bullish Ichimoku Cloud is narrowing (3). As a result, the prices are likely to keep moving down to test the upper border of Kumo. Chart. Weekly GBP/USD  Daily GBP/USD While at the beginning of the last...
06/24/2011 - 15:13
The pair EUR/USD bounced today for a short period of time as Ifo index of German business confidence unexpectedly increased in June. Then, however, the single currency went down again due to the concerns that EU pledge to stabilize the situation in the region won’t resolve a sovereign-debt crisis. European finance ministers will decide on July 3 whether Greece has met conditions for its next aid payment. Yesterday EU leaders urged the nation to pass next week the 78 billion-euro ($111 billion)...
06/24/2011 - 14:10
Analysts at UBS note that though Greece's new austerity plan encouraged risk appetite allowing euro to bounce versus the greenback on short term, the pair EUR/USD is under bearish pressure after it breached yesterday the 1.4128 level. According to the specialists, euro is poised down to 1.4070 and then to 1.3970. Strategists at Commerzbank place downside targets for the European currency at the 200-week MA of 1.4014, the recent minimum at 1.3968 and the 200-day MA at 1.3854. In their view,...
06/24/2011 - 12:53
Currency strategists at Bank of New York Mellon are bearish on Australian dollar. The specialists think that investors’ demand for Aussie may soon start declining. In their view, AUD will be affected not only by the global growth concerns, but also by the monetary policy of China, its largest trading partner, that’s trying to ease down the surging prices. In addition, according to the bank, the factors that contributed to the Aussie's advance this year above parity versus its US counterpart may...

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