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Home Forex Forex Trading Updates and Views Foreign exchange trading: Euro recovery set to continue
Foreign exchange trading: Euro recovery set to continue PDF Print E-mail
Written by Will Peters   
Monday, 14 June 2010 09:16
A range of views from a selection of foreign currency trading experts.



The Economy News bring a range of technical and fundamental views of the foreign exchange markets for those looking to trade forex:

Trading the EUR USD


Foreign exchange analysts at Standard Chartered suggest selling upticks ahead of 1.2330 for retest of 1.1820, 1.1212 further out.

"The Euro is continuing its recovery from 1.19 and is currently at around 1.2200. Traders are unlikely to get too over enthusiastic just yet as the overall trend is still very much Eurozone unfriendly but, this said, the current slow grind higher is rather more confidence inspiring than the previous sharp bounces that we have experienced in the last couple of months," says Simon Denham at spread betting firm Capital Spreads.

"The bears will still be focusing on 1.1600 the bulls on the bottom of the old support at 1.2350, we have managed to get back above 1.2150/70 minor resistance/support in the early session and longs will be hoping for more of the same with 1.2270 the near-term target. On this note, both longs and shorts will be watching the 1.2150/70 level for any retracement. If we nudge below here through the session sellers may well become more aggressive," says Denham.

Eurozone Industrial Production for April expected at 0.5%.

"The EUR USD pivot point is at 1.2125 with a preference to enter into Long positions at 1.2135," say analysts at Easy Forex the global foreign exchange trading platform.

The Euro remained well supported as the market continued to rebound after weeks of heavy selling. Positive risk sentiment and strong cross buying especially on the EUR GBP underpinned the move higher.

May German WPI increased 0.3% as expected. EUR USD traded with a low of 1.2046 and a high of 1.2152 before closing at 1.2090.

Looking ahead, April Industrial Production is forecast at 0.5% vs. 1.3% previously.

Markets on Friday saw volatility pick up across the board with the EUR USD's trading range over 100 pips. Retail sales on Friday came in weaker than expected for the month at -1.2% however this is not expected to have a great impact on underlying GDP as the report is ex-auto sales.

This report spurred a bout of risk aversion and some USD strength pushing the Euro to 1.2045 lows. As the session went on we had the University of Michigan report come out showing a print of 75.5 beating expectations of 74.5.

Markets have also shifted their expectations of the next Fed Rate hike to January 2011 from September 2010 given the Euro zone debt crisis.

Stocks in the US closed the session in positive territory almost half a percent higher on continued hope that the US will stubbornly continue to grow despite the happenings on the other side of the Atlantic.


Last Updated ( Monday, 14 June 2010 09:20 )