EUR/USD Commentary and Trade Ideas

The euphoria following last quarter’s stock market performance is waning, and the reports of the anticipated economic recovery are not reassuring. Earlier this year there was a surplus of idle cash, but remaining idle was not fashionable, so investors, fearful of being left behind, came after equities. To assign the reason for the daily dollar fluctuations to changes in risk attitude seems a little simplistic. Perhaps the ability of the US Treasury to successfully borrow the first trillion, which helps finance the current deficit and embark on new spending ventures deserves some credit. So far there are no indications the US Gov will not be able to borrow the second trillion. With credit like this, the scheduled wake for the death of the dollar had best be postponed, regardless the directions of stocks. If the G8 members can refrain from serious dollar bashing, a return close to the 1.40 level can be sold with an appropriate stop. The target price for this trade is in the 1.37 area.
  • Bias: Lower
  • Bias Term: Medium
  • Support: 1.3890 1.3830 1.3770
  • Resistance: 1.4050 1.4110 1.4180

GBP/USD Commentary and Trade Ideas

Complete Story »