The Wall Street Journal came out with a report saying that Germany had softened its stance in regards to allowing Greece to get further aid, a development that should help benefit the EUR, as it removes the latest impediment in the sovereign debt crisis.
WSJ Reports Germany Softening its Stance on 2nd Greek Bailout, EUR/USD Rallies to 1.44
May - 31 - 2011
EURUSD the Catalyst for Risk
May - 31 - 2011
Risky assets have got off to a strong start this week. The chief catalyst seems to have been Greece and the affirmation from EU officials that it won’t be allowed to default next month and it will receive additional aid at the end of June as scheduled.
The euro is higher
GBP/JPY Confirms Inverted Head and Shoulder and Targets 137
May - 31 - 2011
GBP/JPY is establishing bullish momentum, as the 4H RSI reading rises above 70. The 1H RSI also shows a steady bullish momentum in the short-term, which is now translating into the medium term.
Price action broke above 134.00, which was an important pivot. An earlier break above 133.00, was an upside
AUDUSD: Recovery Halts, Weakens
May - 31 - 2011
The pair now faces bear pressure as a further attempt at building on its recovery started from the 1.0439 has stalled at the 1.0754 level. The risk of this development if a return above the 1.0754 does not occur will mean possible lower prices towards the 1.0439 level with a
FX Thoughts for the Day
May - 31 - 2011
The Resistance at 1.6550 has held well. This could be potentially bearish, especially if the market now breaks below important Support at 1.6557. If so, there could be chances of a fall towards 1.6330, or even lower. A rise past 1.6550, on the other hand, would be very bullish and
As the Bank of Canada prepares to announce its interest rate policy, the market has already broken below a range roughly between 0.9750 and 0.9815.
The breakout to the downside is now seeing some support as we head into the US session.
USD/JPY Targets 83.20, 83.30 Wave Equality
May - 31 - 2011
The USD/JPY is seen in the 1H chart rallying sharply after a narrow Memorial Day range trading. The Asian and European session pushed the pair back to 61.8% retracement, just below 81.70.
The 1H RSI reading going above 70 shows very short-term bullish momentum while the 4H RSI is testing 60,
EUR/USD Crosses 1.44 on its Way to 1.46, 61.8% Retracement
May - 31 - 2011
The EUR/USD broke above a previous high at 1.4345 and is now attacking the 4H 200-period simple moving average.
The RSI is above 70, reflecting a bullish momentum breakout. In the near-term, we might get a consolidation as we cross 1.44.
This rally has a bullish impulse wave structure. Notice the lead-up