The EUR USD had an inside day but finished lower. Technically the Euro fell to the bearish side of a steep uptrending Gann angle at 1.3444, perhaps signaling the end of this rally or at the least the end to the bullish pace which has driven this market to its highest level since April over a short period of time.
The EUR USD had an inside day but finished lower. Technically the Euro fell to the bearish side of a steep uptrending Gann angle at 1.3444, perhaps signaling the end of this rally or at the least the end to the bullish pace which has driven this market to its highest level since April over a short period of time.
December Treasury Bonds broke on Friday as investors shed safer assets in favor of higher-yielding risky assets. The main trend remained up on the daily chart while the market completed a 50% retracement of the 124’22 to 135’19 range. The first target was 130’17. The market tested 130’12.
U.S. equity markets rallied sharply higher on Thursday as tensions eased in the Euro Zone prompting investors to turn up demand for higher risk assets. The strong surge in the June E-mini S&P 500 negated Wednesday’s hard sell-off, triggering a rally through the minor retracement zone at 1074.50 to 1082.25.
The U.S. Dollar is trading higher as renewed Euro Zone issues and a potential conflict between North and South Korea are driving investors into the safety of the greenback.
After falling to take out Thursday’s low, the EUR USD strengthen on the news that Euro Zone leaders agreed on a financial aid package for cash-strapped and debt-laden Greece.
The U.S. Dollar had a volatile trade overnight with a slight bias to the downside. Profit-taking was highlighted last night as traders turned a little positive that a solution was going to be reached regarding the escalating deficit issue in Greece. Overbought technical factors even helped to weaken the Dollar.
The Japanese Yen rose on Thursday as investors shifted assets out of the troubled Euro Zone on renewed budget turmoil in Greece. A spike in the cost to insure Greece’s sovereign debt triggered a flight to safety rally which fueled a turnaround in the Yen after earlier weakness. News that a similar situation is developing in Portugal also contributed to the Yen’s strength.
