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Moody’s Concerns Have Risk Pairs Lower

Risk pairs have been under pressure since opening higher for the week, on reports that Moody’s rating agency is concerned  that the UK and US could be moving closer to losing there AAA debt rating. Although we have heard this rhetoric before, the market continues to react to this headline. Looking at the daily chart below, we see the pair could find support at the former trendline resistance and  move back up could be defended by the 38.2% retracement of the move in 2010.

Markets Quiet into the final few hours of trading in the Forex

Markets activity has quieted down into the final few hours of trading in the Forex. We will have a weekend report for you tomorrow with a preview of next weeks opportunities.

Today is also the final day for the 8% funding bonus at FXDD. You can all of the details at www.fxdd.com if you are looking to open an account today. Greg Michalowski will return on Monday.

Update: GBP/USD slows after channeling for 2 days

The GBP/USD has been in an upward trend for much of the past two days. Looking at the 5 min chart, we can see that the pair has worked its way higher inside of a channel. The bottom side of the channel has been supported with 3 tests. The pair broke above the channel this afternoon and then failed to break above resistance at 1.5215. This will be the key level traders will be watching. Above this, there is good room for a short term trader on the way to major resistance at the 50% retracement level from the daily chart at 1.5272.

On the downside if the pair started to move lower, support will be found at the 100 MA (blue line) at 1.5159 and below that at the 200 MA (green line) at 1.5114. Below that further short term support will be found at 1.5032 and 1.4871 the low…

Forex Midday Report - March 12

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USD/JPY hits hard resistance and retreats before noon

The USD/JPY hit hard resistance at 91.07 and fell quickly back to trendline support at 90.96. The pair has held the 100 Hour moving average for over a week with only one break below, early in today’s session. The pair has climbed almost 300 pips since March 4th. Support will be found at the 100 Hour MA at 90.30 and then down at the 200 Hour MA (89.74) On the top side if the pair can break 01.07, resistance will be found at 91.87 which is the 200 Day MA on the daily chart.

Online Trading Class TODAY 4pm Register

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On the wires: Treasury Secretary Tim Geithner speaking at 12pm

Treasury Secretary Tim Geithner speaks before the U.S. Export-Import Bank annual conference in Washington at 12pm New York time.

US Sentiment Survey Released below estimate

University of Michigan Sentiment index was released lower today, below the 74 estimate, at 72.5. Prior number for Feb 2010 was 73.6.

AUD/USD looking like a double top forming at 0.9193

The AUD/USD appears to be having challenges breaking above the 0.9193 as a double top forms. The pair has been in a bullish trend since late February, 2010. The pair has only been below the 200 Hour moving average once in that entire time so the bias remains bullish for the time being, however, the pair may move to test the 100 Hour moving average in the near term (blue line 0.9134). Below that the 200 Hour MA (green line) comes into focus at 0.9087.

Key resistance levels on the top side are seen at 0.9250, 0.9326 and then at the 2009 high of 0.9405.

Forex Morning Report - March 12

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Canada’s jobless rate drops to 8.2%

Canada’s recovering economy continued to churn out new jobs last month, adding 60,000 full-time positions — mostly in the public sector. The February unemployment rate of 8.2 per cent was the lowest reported by Statistics Canada since April, 2009, which was before the country began to recover from a major recession.

Looking at the USD/CAD the pair has moved lower.

US Retail Sales Rise

Total US retail sales rose 0.3 percent, as released by the Commerce Department, as consumers bought an array of goods from necessities to luxury items. Sales for January were, however, revised down to only a gain of 0.1 percent from the previously reported 0.5 percent increase.

EUR/USD Moves higher into major resistance

The EUR/USD moveed higher after breaking above the trendline near 1.3680, and climbed into major resistance at 1.3799. This is the 50% retracement level from the move seen on the daily chart. The pair is likely to have challenges with getting above this key level.

Looking at the daily chart, the level becomes clear. The longer term resistance level is seen at 1.3799, which is the 50% retracement level from the move up on March 3, 2010 to the high in November 2009. This will be a critical level for traders following the EUR/USD.

Bobbys Corner-Open Market-March.12.2010

Good Morning:

The USD lost ground overnight as speculation that the Fed will keep interest rates low reduced demand for USD dominated assets.  In other news, Janet Yellen will most probably be selected as vice chairman of the Fed.  Ms Yellen is currently President of the San Francisco Fed, and has been a staunch supporter of lower interest rates to combat the global recession.

EU leaders will meet next week to discuss the potential need to issue bonds or give outright loans to Greece, as the country works on an auterity program aimed at cutting it’s staggering deficit.

Equity markets rose around the globe and US futures are also higher this morning.  Banks and commodity companies helped keep equity indexes in positive territory.
Commodities in general rose across the board, with gold leading the charge.

Oil:$82.72                              Gold:$1117.50

HAVE A GREAT DAY-WEEKEND & GOOD LUCK

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