Bernanke testimony begins

Written February 25, 2010 at 9:41 AM EST by  

Email This Post Email This Post   Print This Post Print This Post

With snow in NY coming down, says the weather could have a negative effect on the employment.

He also comments that Deficit has limited effect on the inflation.  Longer term it could affect interest rates and the value of the dollar.

This has led to a move lower in the dollar (higher deficits = lower dollar) with the EURUSD moving back above the 1.3483 level. Choppy conditions prevail in the pair.

Share and Enjoy:
  • RSS
  • Facebook
  • Twitter
  • LinkedIn
Categories: Forex Trading  |  

8 Responses to “Bernanke testimony begins”

  1. Mani on February 25th, 2010 10:19 am

    Greg,

    He has calmed down the fall of Euro/usd for the time being.

    The negative reports being published in US will bring this pair below earlier lows. 1.3440.

    Also there is nothing positive in the euro zone to support bullishness in this pair.

  2. Greg Michalowski on February 25th, 2010 10:20 am

    Be careful being too fundamental. Watch the technical levels too. The markets can get oversold and correct. Greg

  3. Sebastian on February 25th, 2010 10:23 am

    Yup… don’t get caught on the oversold/overbought corrections. I learned the hard way. Hehe.

  4. Mani on February 25th, 2010 10:40 am

    I have been using corrective rallies for entering short.

    I watch closely the resistance levels as you indicated, and i find it has no power to correct beyond 1.3531 levels at the moment.

    Let s see.

  5. Mani on February 25th, 2010 11:06 am

    Greg,
    I draw fib lines for the move from 1.3785 to 1.3440 this is the one i have been using.

    Is this right or i should redraw for the move from 1.3625 to 1.3550?

    Thanks

  6. Mani on February 25th, 2010 11:15 am

    sorry, 1.3450 and not 1.3550.

  7. Greg Michalowski on February 25th, 2010 11:16 am

    I used the high from Feb 23rd. So in between. I just want to give more room for the correction.

    When the market hits a key target (1.3483) , you want to be aware of the potential upside -especially if the market goes below and then moves back higher like it now has done twice. Looking at the daily chart shows the last leg down has gone 1000 pips. If focus goes off Greece and focuses instead on the deficit in the US, the dollar could sell off. The charts will tell that story, with the 1.3483 level being the key level to continue to watch. If the price dips back below, the bias back down. The good news for the bears is the top resistance at 1.3539 level held. Markets remain choppy.

  8. Mani on February 25th, 2010 11:30 am

    Thanks for the great explanation fundamentally and technically.

    I noticed another thing, both upside moves earlier found resistance at 3685 and 3625 and came down sharply.

    Let ‘s see.

Add a comment