Euro tested Thursday's high (1.3383) and bounced. Right now it's at 1.3416. New high coming soon...

ZEW Economic Sentiment printed 25.4 VS 17.3 expected

German economic expectations improved sharply in January, indicating that the euro zone's largest economy is set to continue growing in the months ahead despite the debt crisis in the region, the ZEW think-tank said Tuesday.

ZEW said its closely watched economic-expectations index increased for the third consecutive month, to 15.4 points in January from 4.3 points in December.

The outcome was above economists' forecasts of 8.0 points, but below the indicator's historical average of 26.8 points.

"Financial-market experts expect the dynamic growth of the German economy to continue," ZEW said in a press release.

German gross domestic product increased 3.6% last year in price-adjusted terms, which marks the strongest increase since pan-German records began in 1992.

"The currently low level of real interest rates should strengthen demand for capital equipment in Germany," said ZEW president Wolfgang Franz, adding that improved labor-market conditions are boosting private consumption.

The ZEW survey of 284 analysts and institutional investors showed that the assessment of current economic conditions was little changed in January, at 82.8 points, from 82.6 points in December.

Euro continued its move up that started on the 9th of this month. It made a high on Friday [1.3624] This high was reached almost near the end of Friday's session (the end of this trading week) History showed us that whenever a currency make a new high near the end of the week, it usually continue it's move. So I am expecting Euro to keep on moving upwards next week. History shows that whenever this happens, 2 scenarios can play out: 1-The market opens on Monday with gap to the upside 2-No significant gap, instead we will get a newer high.

Originally posted by paradise

Euro continued its move up that started on the 9th of this month. It made a high on Friday [1.3624]
This high was reached almost near the end of Friday's session (the end of this trading week)
History showed us that whenever a currency make a new high near the end of the week, it usually continue it's move.
So I am expecting Euro to keep on moving upwards next week.
History shows that whenever this happens, 2 scenarios can play out:
1-The market opens on Monday with gap to the upside
2-No significant gap, instead we will get a newer high.

On Monday, we had the expected Gap (around 30 pips) , then Euro went down a little too continue it's move up as expected for all the week. On Friday, Euro made a free fall of 100 pips. thus, breaking its trendline. Euro's momentum was slowing down for the last week [check pic]. We may see a significant retrace on this trend by next week.

I am having problems uploading pictures...

paradise,

Your attachment size should not exceed 1MB.

Thank you support

heard from american bank that they sold EURUSD 300 mio (200 mio from real money + 100 mio internal prop trader) between 1.3585-1.3595...market took it well

Originally posted by jamal

Combining EURUSD, SP500 & Eurozone Spreads

Renewed trepidations emerge within the Eurozone as France and Germany press on for a new bail-out system that would put the onus on bond markets rather than taxpayers. Politicians are more supportive of the notion of debt restructuring, to the detriment of bond markets. ECB & Trichet won round 1 earlier this year when it forced member nations into establishing the €440 bln bail-out for Greece. But as the 3-year facility is set to expire, member-nation suggest debt rescheduling as a solution, in which case would escalate the risk of default and drive up bond yields. Yields rise in Portugal, Spain and Greece have all risen over the past 2 weeks, lifting Greek-German 10-year spreads to 4-week highs by 3%.

The top half clearly shows the highly correlated difficulty for both the EURUSD and SP500 to close above their 200-week MAs, while the lower half shows the notable (and simultaneous) rise in Portuguese, Greek & Spanish 10-year spreads relative to Germany.

The aforementioned dynamics illustrate a tug of war between the QE2’s negative impact on the USD, and the onset of a disappointing FOMC announcement on an already hesitant equity market. S&P500 has yet to close above its 200-week MA (now at 1195), which was last breached in 2008. Considering the 0.79 daily correlation between EURUSD and S&P500 (highest since January), FX traders cannot disregard the S&P500’s inability to break through 1195—a failure which will likely suggest EURUSD’s inability to break out of the $1.41-1.42 congestive resistance.

can you plz share more about this system its name and how it work its looks nice to me if possible plz share with all this system .

i am w8ing for your reply dear.

According to our Managed accounts Trader #3 the Euro/USD is about to hit a correction, as the chart below shows the 61.8 Retracement is around the 1.3675 area, this area also mixes in the the bottom of the channel line, which in the past resulted in bounced of 3 to 4 cents. buckle up this will be a fun ride.

hmmm having issues with posting the chart... admin a little help its under 175 kb

Eur/Usd still continues to be bearish today as well as GBP/USD and Eur/Jpy. It's trending on M15 time frame.