Forexmentor.com Currency Trading Price Action
The current rise in the euro started at the Tokyo open Feb. 26/06 in the form of a hammer reversal formation on the hourly chart. I like to do my price projections after a major shift in price direction. A price projection after that swoon in price saw price rising to ~1920. Coming into today's session, knowing that and seeing the attitude of MACD on the hourly chart (read, up), it was logical to assume that price would go on a tear, and race through all its pivot points to achieve the end of that price projection. It got as high as 1894. In the news, the ECB's main refinancing rate could rise to as high as 3.25% by the end of this year, with a likely hike in the key interest rate by 25 basis points to 2.5% this Thursday. It is expected to be raised by an additional quarter percentage point in each of the following quarters of 2006, for a total of 100 basis points this year.
See today's chart at: http://www.forexmentor.com/campaign/feb2806.html
See sample AM Review at: http://www.forexmentor.com/sampler/feb2206.html
Forexmentor.com Forex Trading News
The Canadian dollar, to some extent, moves at the whim of oil prices which, in turn, are impacted by the short-term effects of market psychology. That said, day-to-day moves have marginal impact on Canada's oil profits or prospects. Canada is a net exporter of oil and gas.
Gold-positive news (read, oil price worries) also burnish that metal's allure as a safe haven. However, gold prices are at a 24-year high, which has been deterring demand from jewelers. Their buying activity, for the fourth quarter, was the lowest in almost four years.
The expectation of higher interest rates in Canada and the U.S. is a negative for major European currencies. The hawks are taking note of Canada's healthy current account surplus. In theory, that number should keep the U.S. dollar versus Canada below $1.15.
Last week's unexpected drop in jobless claims added fuel to the notion that the Fed Reserve will have to keep its tightening policy up. The thinking is that companies will have to offer higher wages to keep workers.
The current rise in the euro started at the Tokyo open Feb. 26/06 in the form of a hammer reversal formation on the hourly chart. I like to do my price projections after a major shift in price direction. A price projection after that swoon in price saw price rising to ~1920. Coming into today's session, knowing that and seeing the attitude of MACD on the hourly chart (read, up), it was logical to assume that price would go on a tear, and race through all its pivot points to achieve the end of that price projection. It got as high as 1894. In the news, the ECB's main refinancing rate could rise to as high as 3.25% by the end of this year, with a likely hike in the key interest rate by 25 basis points to 2.5% this Thursday. It is expected to be raised by an additional quarter percentage point in each of the following quarters of 2006, for a total of 100 basis points this year.
See today's chart at: http://www.forexmentor.com/campaign/feb2806.html
See sample AM Review at: http://www.forexmentor.com/sampler/feb2206.html
Forexmentor.com Forex Trading News
The Canadian dollar, to some extent, moves at the whim of oil prices which, in turn, are impacted by the short-term effects of market psychology. That said, day-to-day moves have marginal impact on Canada's oil profits or prospects. Canada is a net exporter of oil and gas.
Gold-positive news (read, oil price worries) also burnish that metal's allure as a safe haven. However, gold prices are at a 24-year high, which has been deterring demand from jewelers. Their buying activity, for the fourth quarter, was the lowest in almost four years.
The expectation of higher interest rates in Canada and the U.S. is a negative for major European currencies. The hawks are taking note of Canada's healthy current account surplus. In theory, that number should keep the U.S. dollar versus Canada below $1.15.
Last week's unexpected drop in jobless claims added fuel to the notion that the Fed Reserve will have to keep its tightening policy up. The thinking is that companies will have to offer higher wages to keep workers.
<< Home