euro

Renewed demand for risky assets is helping to drive the December Treasury Bonds lower. Technically the T-Bonds may have made a secondary lower top on Tuesday after testing the retracement zone at 133’03 to 133’22. The actual rally to 133’12 completed a 50% retracement of the 135’19 to 130’12 range.

Ahead of the release of this afternoon’s Federal Reserve Beige Book, the U.S. Dollar is trading weaker against most major currencies. This report shouldn’t be a market mover, but traders should read it to gain a little more knowledge into what the Fed looked at when it made its recent Federal Open Market Committee decisions.

Hiyo my avid forex fans! In my previous article about the euro, I mentioned that its recent rally after breaking down from what appears to be a head and shoulders formation could be over soon. However, a full blown breakdown and a reversal did not really pan out as the euro bulls were able to out-muscle the bears to place them back on top.

Pick your movie metaphor, but it appears that the U.S. Dollar and the Euro are entwined in their own version of the “Last Tango in Paris”, where neither is sure where the relationship will head, but time marches on. Ever since the Greek debt crisis hit the global stage in May, markets have been in turmoil, until finally resuming something short of normalcy in the past few weeks.

The U.S. Dollar is trading flat to lower at the mid-session as traders remain cautious ahead of Friday’s U.S. Non-Farm Payrolls Report. Earlier this morning the Dollar showed little reaction to the European Central Bank’s decision to hold interest rates steady and a slight drop in U.S. Weekly Initial Claims.

U.S. equity markets are trading sideways to higher at the mid-session in a lackluster trade. Upside momentum has slowed compared to yesterday, but there doesn’t seem to be a strong conviction to the upside either.

Technically, the September E-mini S&P 500 has a chance to test a key Fibonacci retracement level at 1088.00.

This morning the European Central Bank left interest rates unchanged as expected. ECB President helped move the Euro a little higher by stating that recent data has been stronger than expected partly due to temporary factors, but the ECB still expects the Euro Zone’s economic recovery to be moderate and uneven.

The strong rallies in the Euro and the three major risk-linked currencies finished sharply higher and near their highs while showing no signs of a letup into the close. Whether it was short-covering or fresh buying, investors celebrated good global economic news by driving the U.S. Dollar lower and most major markets higher.

The September E-mini S&P 500 soared to the upside this morning boosted by strong economic data from Australia and China. Although the ADP employment outlook surprising missed analyst estimates, investors shrugged off the news. Thin trading conditions may have contributed to the rally. Many large traders and institutions have been on the sidelines this week due to Monday’s Labor Day holiday.

The Dollar declined against the Euro and commodity-linked currencies after U.S. manufacturing activity showed a surprise improvement last month. This news came unexpectedly and indicated that despite calls for a double-dip recession, there were identifiable areas of strength in the economy.

This may be a key turnover day for all markets. Specifically, the EURO, DOW, and CRUDE are now registering "NO CONFIDENCE" on the previous DOWNTREND signal and really only has to hold in this range to turn the signals. Price to look out for on the EURO is 1.2745 and the DOW is 10149.71.

The Euro surged to the upside overnight, taking out the last swing top at 1.2779 and changing the main trend to up on the daily chart. Based on the range of 1.3334 to 1.2587, the EUR USD is now set up for a possible test of the retracement zone of this range at 1.2960 to 1.3049.

Thin trading conditions and economic reports led to a “roller-coaster” type trading session in the Euro on Tuesday. The European single currency rallied on a better than expected German jobs report, topped on strong U.S. Consumer Confidence data then, after trading sideways throughout the mid-session, drifted lower into the close following the release of the Fed minutes.

Good day to you my Forex friends! Here’s an update on the EURUSD or the fiber as what they call it on Wall Street. The last time I covered the pair (please see my previous post here), it had just broken down from a head and shoulders formation. Since then, the pair has rallied to form what appears to be a rising wedge pattern.

The Euro had a wicked move shortly after the release of the better than expected U.S. GDP Report. The initial move was to the downside because the number only showed a drop to 1.6% rather than the pre-report guess of 1.3%. After the dust settled, the Euro soared to the upside as traders reassessed the strength of the U.S. economy.