Technical News | GDMFX Brokerage

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2013.02.13 : Bad luck for the US Dollar or for the Euro?

EUR/USD

Yesterday the pair broke the resistance located at 1.3400, showing us that underlying buyer strength is still present. Mario Draghi’s speech occurred at 2:30 pm GMT, not at 3:30 pm GMT as it was first announced but nonetheless, it didn’t create the expected volatility.



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GBP/USD

Yesterday’s Consumer Price Index anticipated value was revised from 2.8% to 2.7% and no change was posted today. The fact that the CPI value remained unchanged brought no volatility in the market at the time of the release but the pair moved above the resistance at 1.5630 which was broken early in the morning.



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2013.02.14 : Big challenges ahead

EUR/USD

Overall the pair had a mixed trading session, moving higher to touch the level of 1.3500 and then dropping once the resistance was hit. The US Retail Sales came out as expected, with a value of 0.1% from the previous of 0.5% but the Dollar strength can be attributed to some extent to the better than expected Core retail Sales: actual 0.2%, forecast 0.1% and previous 0.3%.



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GBP/USD

The pair plunged today on the back of BoE Governor Mervyn King’s remarks about the economy facing “big challenges”. He also expressed his concern about the fact that growth is likely to be weak and these comments drove the pair below the support located at 1.5630.



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[pasfx]

2013.02.15 : The G20 meetings have all the ingredients for a volatile day

EUR/USD

The Euro posted a negative day, weakening against the US Dollar, a fact which resulted in a drop below the support at 1.3400 and even a new low could be seen late yesterday in the afternoon. The US Unemployment Claims came out lower than expected, strengthening the greenback and contributing to some extent to the Dollar strength.



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GBP/USD

The GBP/USD bears were stronger than the bulls yesterday so the pair slowly grinded its way towards 1.5500 and even managed to go below it.



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[pasfx]

2013.02.18 : The lack of economic data could generate sideways movement

EUR/USD

Friday was characterized by a mixed trading session and the pair moved up and down for the entire period, finishing the day almost at the opening price, a fact which resulted in a daily Doji candle, signifying indecision in the market.



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GBP/USD
Friday’s UK Retail Sales numbers came out a lot worse than forecast, at -0.6% (expected number was 0.5%) and this negative surprise generated Pound weakness and drove the pair significantly lower. However until the end of the session, the GBP managed to regain some of the lost territory.



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[pasfx]

2013.02.19 : Movement expected although another slow day in terms of economic data is ahead

EUR/USD

The lack of economic data combined with the fact that Mondays are usually slow days resulted in sideways price action and low volatility fro yesterday’s trading session. The US Banks were closed celebrating Presidents Day and even Mario Draghi’s speech couldn’t do much to speed things up.



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GBP/USD

The pair also had a trading session characterized by sideways movement and no important levels were decisively broken.



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2013.02.20 : Both pairs are close to important S/R levels

EUR/USD

After a slow start, the pair started picking up some speed in the second part of yesterday’s trading session and broke to the up side the symmetrical triangle mentioned in our previous article. The German ZEW Economic Sentiment came out much better than expected, at 48.2 (the forecast was 35.3) and contributed to the strength exhibited yesterday by the Euro.



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GBP/USD

After a brief rise above the trend line seen on the hourly chart below, the pair resumed its bearish movement and returned under the mentioned down trend line.



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[pasfx]

2013.02.21 : Major historical support for the GBP/USD

EUR/USD

The pair encountered strong resistance at the 1.3430 level and dropped for almost the entire duration of yesterday’s trading session, returning below 1.3400 and under the down trend line seen on the four hour chart below.



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GBP/USD

The bears had a huge victory yesterday, driving the pair about 170 pips lower and breaking important support levels on the back of more quantitative easing (QE) talks.



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2013.02.22 : Ending lower a week controlled by the bears

EUR/USD
Yesterday the long term upward trend line was broken by the pair on the back of massive bearish momentum generated by the FOMC Meetings and also by the Philly Fed Manufacturing Index which came out much worse than expected, at -12.5 (forecast was modified during the day from 0.7 to 1.1).



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GBP/USD

The pair experienced a sell off during yesterday’s Asian session and the strong weekly support level of 1.5270 was decisively broken. This sell off was triggered by the US FOMC Meeting Minutes.



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[pasfx]

2013.02.25 : Major support is broken for both pairs. What’s next?

EUR/USD

We had an eventful week both from a technical point of view and a fundamental one. The pair chose a downward direction and managed to close below the strong support zone created between 1.3300 and 1.3270. Also the up trend line drawn from the 24th of July 2012 was decisively broken during last week and price is now sitting close to the support located at 1.3130.



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GBP/USD

Last week was a very important one for our pair because a major weekly support level was breached for the first time in a long period. Talks about increasing the Asset Purchase Facility weakened the Pound and the result was a drop of about 370 pips for the entire week.



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2013.02.26 : Who is really in control of the market?

EUR/USD

The Italian Parliamentary Elections proved to be a major market mover. While in the first part of yesterday’s trading session we saw a very strong Euro, climbing up to 1.3318, in the second part of the day, the pair dropped almost all the way back to the opening price of the day.



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GBP/USD

The pair had a slow day comparative to the EUR/USD and opened with a big gap, which was eventually closed once price traveled the whole distance back to Friday’s close.



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