May 10th, 8:07 pm by Barbara Zigah
(eToro Blog) Only a few headlines dominated the media this week, and most of those originated in the Eurozone. It began over the weekend when key elections in France, Greek and Germany swept out the incumbents and swept in a movement of anti-austerity and displeasure with the status quo. Continue reading
May 10th, 1:00 pm by Barbara Zigah
(eToro Blog)Worries of a Eurozone breakup have recently escalated with Greece, but this recent news from Spain on the nationalization of Spanish lender Bankia will only exacerbate that sentiment. Nouriel Roubini, aka Dr. Doom, agrees and believes that Spain will lose market access by the year’s end and would need a huge troika-approved bailout that would still only buy them time. Eventually, Spain might find itself alongside Greece – outside of the Eurozone. Continue reading
May 10th, 10:56 am by Barbara Zigah
(eToro Blog)Once again it is the events in Greece that is raising concerns of a possible Euro breakup to new levels. Only days after Parliamentary elections sent a clear message from the Greek constituency that the days of pain and austerity were over, the newly elected ruling parties are still unable to form a coalition government. Investor worries that without a coalition government Greece would not receive its next tranche payment of €5.2 billion from the E.U./IMF have now been rendered moot. Late yesterday, it was agreed by the board of the EFSF that the payment would go through as scheduled, surely much to the chagrin of Greece’s newly elected anti-bailout cotillion. Continue reading
11 May 2012 1:13 am – By: Dima Chernovolov
GBP/JPY has recently completed the Uniform Falling Wedge chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is measured at the 6 bar level, as a consequence of the low Initial Trend (rated at the 2 bar level), near-maximum Uniformity (8 bars) and lower Clarity (7 bars). This chart pattern reverses the downward correction to the preceding sharp daily upward price impulse from the major level of support at 119.00 (which had previously reversed the major downtrend at the start of 2009). The preceding upward price impulse had also previously broken up through the long-term descending trendline from the August of 2009 as well as the major level of resistance 127.00 (the bottom of this chart pattern, point G on the chart below, formed close to this support level). The pair is expected to rise further toward the Forecast Price 129.56. Continue reading
By Carly Pickering
The Australian Dollar started its local session at lows yesterday, trading down at 1.0040 early on. Employment figures soon provided some relief and, with a net gain of 15,500 jobs and a drop to 4.9% overall unemployment, the Aussie subsequently rallied through 1.0100. A disappointing rise in Chinese imports however weighed on the local unit and with expected demand for Australian exports lessening, the Aussie found itself back near support at 1.0080. Not to be deterred, the markets chose to focus on the recent positives and a push higher was later capped at 1.0140 as sentiment surrounding Europe increased marginally. Taking a tumble late in the North American session, equities and risk were hit by a release by JP Morgan, reporting a $2 billion loss in bad trades over the past six weeks and another potential $1 billion is second quarter losses. Dipping to support at 1.0050 the Aussie now trades at 1.0060 ahead of Chinese CPI figures today.
We expect a range today of 1.0000 – 1.0110 Continue reading
09 May 2012 11:03 pm – By: Dima Chernovolov
GBP/USD has recently completed the high Clarity Triangle chart pattern identified by Autochartist on the 4-hour charts. The overall Quality of this chart pattern is measured at the 5 bar level as a result of the low Initial Trend (one bar), significant Uniformity (7 bars) and higher Clarity (8 bars). The top of this chart pattern (point A on the chart below) formed when the pair reversed sharply down from the strong resistance level 1.6300. Both of the connecting points of the lower support trendline of this Triangle (points C and D on the chart below) formed when the pair corrected up from the Key Level support at 1.6114 (shown on the second chart below). The pair has recently broken down through the lower support trendline of this Triangle and is expected to fall further toward the Forecast Price 1.6061. Continue reading
By Michael Judge
The Australian dollar lost one third of a US Cent during the intraday session yesterday after Australia’s trade balance posted its third consecutive monthly deficit of $1.6bn. In the largest trade deficit since October 2009 the higher yielding asset was sold down to a late afternoon low 1.0170 against its US Counterpart. Ahead of the National Budget balance in which Treasure Wayne Sawn handed down his fifth budget, including a forecast surplus of 1.5 billion for the 2012/13 year the dollars overall reaction was relatively muted. As local investors left for the day the bearish trend continued throughout North American Trade with strong headwinds out of Europe continuing to plague the higher yielding currency. Having traded as low as 1.0088 over the past 24 hours the Australian dollar opens noticeably weaker this morning struggling to keep its head above water, currently trading at a rate of 1.0120
We expect a range today of 1.0050 – 1.0160 Continue reading
09 May 2012 12:04 am – By: Dima Chernovolov
Autochartist has recently identified the Descending Triangle chart pattern on the 4-hour USD/JPY charts. The overall Quality of this chart pattern is measured at the 6 bar level as a result of the similarly ranked Initial Trend, Uniformity and Clarity (all rated at the 6 bar level). This Descending Triangle continues the predominant downtrend visible on the daily and the weekly USD/JPY charts. Both of the connecting points of the lower support trendline of this chart pattern (points C and D on the chart below) formed when USD/JPY reversed up from the strong support at 79.75. This price level had previously served as a strong support as well as the powerful resistance level – alternating its role after being broken by the pair (as is shown on the second chart below). This level should be broken on the closing basis for the price to fall further. Continue reading
By Michael Judge
The Australian dollar lost one third of a US Cent during the intraday session yesterday after Australia’s trade balance posted its third consecutive monthly deficit of $1.6bn. In the largest trade deficit since October 2009 the higher yielding asset was sold down to a late afternoon low 1.0170 against its US Counterpart. Ahead of the National Budget balance in which Treasure Wayne Sawn handed down his fifth budget, including a forecast surplus of 1.5 billion for the 2012/13 year the dollars overall reaction was relatively muted. As local investors left for the day the bearish trend continued throughout North American Trade with strong headwinds out of Europe continuing to plague the higher yielding currency. Having traded as low as 1.0088 over the past 24 hours the Australian dollar opens noticeably weaker this morning struggling to keep its head above water, currently trading at a rate of 1.0120
We expect a range today of 1.0050 – 1.0160 Continue reading
May 7th, 11:21 am by Barbara Zigah
(eToro Blog)In a clear anti-austerity signal, French and Greek and voters – the “haves” and the “have nots,” weighing in from both ends of the E.U.’s economic spectrum – ousted their respective incumbent parties to signal their displeasure and anger with budget cuts, job losses and a diminished growth outlook. Continue reading
