Stocks and Dollars

The EUR/JPY has edged steadily higher within a Rising Wedge Continuation pattern over the past couple of days. Within the context of a two-bar Initial Trend reading-which indicates a weakening uptrend-this is a potentially bearish pattern.

The USD weakened against all of its 16 most-traded counterparts as reports made clear that the U.S. economic recovery is losing momentum. Fed Chairman Ben Bernanke will have a conference with a Senate Banking Committee today. Versus the JPY the USD lost again yesterday. After the intervention of the Bank

The pair yesterday continued fluctuating above 1.3600, although negative signs are appearing on momentum indicators. A rising wedge pattern has a ppeared with a broken support level. This points out that some minor bearish movement is required to retest 1.3500 before continuing the expected overall bullish trend today. Note that

The contradiction between Stochastic for the four hour interval and Stochastic for the daily chart, could not prevent the pair from returning above 38.2% Fibonacci for the upside rally from 127.60 to 135.00. Therefore, we look at the current price behavior as a consolidation above the pivotal support of 130.50-130.80

The pre-planned short positions from key resistance range levels have been implemented, but with loss of several points in attainment of minimal anticipated target. OsMA trend indicator, having marked low activity of both parties, does not clarify the choice of planning priorities for today. Therefore, considering prospects of further rate

The EURUSD had a moderate bullish momentum yesterday, topped at 1.3645 and closed at 1.3624. Overall we are still in strong bullish phase targeting 1.3700 – 1.3800 area this week especially if price make another breakout above 1.3645. As you can see on h4 chart below, CCI about to cross

Yesterday’s bottom around 1.3570 is under pressure at time of writing as the euro is pulling back from 5-month high reached yesterday at 1.3645. The ongoing correction is seen in risk pairs too AUDJPY testing this week’s bottom, EURJPY breaking below 113.50 which acted as a resistance before it

EURUSD Extended gains to 1.3645 yesterday, ahead of easing. This has found support just ahead of 1.3554, 28 Sep low, where fresh strength has emerged. Clearance of 1.3645 to expose key 1.3690 barrier, break of which may open 1.3800 zone near-term. Downside, 1.3558/54 underpins advance and potential break lower would trigger a stronger correction to 1.3504.