The last two days have been strong down moves for EURUSD.
If during the London session today the price returns to the demand area between Tuesday's low and yesterday's high (1.2942 - 1.2912), this is an excellent area to short.
Thursday, 16 May 2013
LONDON OPEN ROUNDUP
Good morning and welcome to the first blog post at Ponshada Forex.
The major story in the forex world continues to be the strength of the US dollar.
USD yesterday made a new multi-year high against JPY, a 6 month high against AUD, a 6 week high against EUR, and a 4 week high against GBP.
The "true" pair driving the market is USDJPY, with the world looking more bullishly upon the US economy coupled with the Japanese government and central bank's determination to inflate the yen.
USD is in an uptrend and its strength continues. However it is noticeable that yesterday the trend faltered a little, with the USD making small pin bars or spinning tops on the daily chart, the lows of which have yet to be broken, with the exception of EUR against which it is rising quite strongly.
Asian session action was quiet.
It should also be noted that USD is approaching areas with plausible resistance especially regarding EUR and AUD. However there is still some way to go before the bottoms are hit.
So today it is still advisable to seek longs on USD especially against EUR, but there may be counter trend trades setting up later. Be prepared to be cautious on any USD longs.
Good morning and welcome to the first blog post at Ponshada Forex.
The major story in the forex world continues to be the strength of the US dollar.
USD yesterday made a new multi-year high against JPY, a 6 month high against AUD, a 6 week high against EUR, and a 4 week high against GBP.
The "true" pair driving the market is USDJPY, with the world looking more bullishly upon the US economy coupled with the Japanese government and central bank's determination to inflate the yen.
USD is in an uptrend and its strength continues. However it is noticeable that yesterday the trend faltered a little, with the USD making small pin bars or spinning tops on the daily chart, the lows of which have yet to be broken, with the exception of EUR against which it is rising quite strongly.
Asian session action was quiet.
It should also be noted that USD is approaching areas with plausible resistance especially regarding EUR and AUD. However there is still some way to go before the bottoms are hit.
So today it is still advisable to seek longs on USD especially against EUR, but there may be counter trend trades setting up later. Be prepared to be cautious on any USD longs.
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