The EUR USD settled into a range after gappingopen and pulling back from its high throughout the New York session, as traders awaited more details about the Greece bailoutpackage.
The EUR USD settled into a range after gapping open andpulling back from its high throughout the New Yorksession, as traders awaited more details about the Greece bailout package. Inaddition, traders are waiting for Tuesday’s Greek Treasury bill auction.Investors want to see whether there is strong demand for short-term Greek debtor if it is going to have to borrow to keep up with its financial obligations.
The commodity and equity markets gave mixed signals today.Initially, both asset classes rallied as the Euro broke out to the upside. Sometraders felt that this new agreement eliminated concerns about Greece’sability to meet its short-term obligations. Some even felt that the funding wasenough to ensure that Greecewould have enough liquidity to implement its new austere financial measures.
The GBP USD gave back all of its overnight gains and posteda daily closing price reversal top. The British Pound piggy-backed the Euro’srally but turned negative when it broke off its high. The charts indicate abreak back to 1.5297 is likely over the near-term.
After a sharp sell-off overnight, the USD CHF settled into arange at 1.0670 to 1.0568. This market mirrored the movement in the Eurothroughout the day. A strong Euro will continue to drive the Dollar/Swisslower.
Mixed equity markets triggered a so-so trade in the USD JPY.Stronger equity markets will increase demand for higher risk assets which willput pressure on the Japanese Yen. Otherwise continue to look for the Dollar/Yento drift sideways over the near-term.
The USD CAD traded flat most of the New York session. The lack of direction ingold and crude oil contributed to trader indecisiveness. Technically, thismarket is oversold and getting support from the confirmed reversal bottom at.9975. A break in gold and crude oil will likely drive this market higher tothe 50% level at 1.0138.
A worse than expected housing market outlook put pressure onthe AUD USD. Overnight this pair rallied sharply higher on increased demand forhigher risk assets. After the bearish report, the Aussie sold off, helping to aclosing price reversal top.
A similar pattern developed in the NZD USD as traders soldthis market in reaction to the move in the Australian Dollar. The close underthe 50% level at .7124 indicates further downside pressure should beanticipated.
James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to
commodity trading advisor.
Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis.
His firm, J.A.H. Research and Trading publishes The Forex
Pattern Price Time Report and The Futures Pattern Price Time Report, daily,
weekly, and monthly newsletters. He also manages an educational, research and consulting service.
James has provided technical analysis for Autochartist.com, The Hightower Report, eSignal, FutureSource, CQG and numerous financial market websites including ForexHound.com, FuturesHound.com, ForexTV.com, IBTimes.com, Investopedia.com, Traderslog.com, TradingMarkets.com and TraderPlanet.com.
Mr. Hyerczyk has presented seminars for Bloomberg, Reuters, Futures Magazine and the American Association of Individual Investors (AAII) in the United States, Malaysia, and Guatemala as well as private seminars in Budapest and Moscow. He also facilitated a technical analysis class at the Chicago Mercantile Exchange.
His published works include articles for Futures Magazine, Trader?s World, SFO Magazine, Forex Journal, and Commodity Perspectives (Commodity Research Bureau).
His book Pattern, Price & Time, published by John Wiley & Sons, Inc. in 1998, is available in English, Russian, German, Japanese and Chinese editions. The second edition of the book was published in April 2009.
Aside from his published works, Mr. Hyerczyk has appeared on the Financial News Network (FNN), Reuters Financial Television, Ask the Expert on WCIU-Chicago and FirstBusinessX.com. He was a weekly commentator on Money Radio.
Mr. Hyerczyk is a member of the Market Technicians Association and holds a Masters degree in Financial Markets and Trading from the Illinois Institute of Technology....More
Copyright 2008 ForexHound.com - The Forex Trading Portal. All Rights Reserved. V422
Risk WarningSite visitors hereby acknowledge that: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.