Forex-Eurousd Short Euro

Time to consider shorting Euro with the aim of it breaking 1.2605 this time.

Forex-Eurousd

As predicted, Euro moved up slightly to recover from its oversold position and then moved further down. Downward movement slowing down, so risky to short here. Expect some upward movement. Watch for the breaking of fib 50% - around 1.2602

Eurousd broke its trading range.

Euro broke down from its upward channel and broke through the trading range to move lower. 4 hour chart is in oversold territory so expect some upward movement before moving lower.

Upward channel

Watch Euro moving up the upward channel. So play the upward channel with the breaking of the lower channel line as stop loss.

Eurousd- Euro moving up

As predicted Euro moving up.

Downward momentum slowing down.

Downward momentum is slowing down. Time to consider going long.

EuroUsd -moving sideway

Euro moving sideway. Just wait for it to break resistance or support before making a trade.

China Favors Euro Over Dollar as Bernanke Alters Path

China, whose $2.45 trillion in foreign-exchange reserves are the world’s largest, is turning bullish on Europe and Japan at the expense of the U.S.

The nation has been buying “quite a lot” of European bonds, said Yu Yongding, a former adviser to the People’s Bank of China who was part of a foreign-policy advisory committee that visited France, Spain and Germany from June 20 to July 2. Japan’s Ministry of Finance said Aug. 9 that China bought 1.73 trillion yen ($20.1 billion) more Japanese debt than it sold in the first half of 2010, the fastest pace of purchases in at least five years.

“Diversification should be a basic principle,” Yu said in an interview, adding a “top-level Chinese central banker” told him to convey to European policy makers China’s confidence in the region’s economy and currency. “We didn’t sell any European bonds or assets, instead we bought quite a lot.”

China’s position may make it harder for the greenback to rebound after falling as much as 10 percent from this year’s peak in June as measured by the trade-weighted Dollar Index. The nation cut its holdings of U.S. government debt by $72.2 billion, or 7.7 percent, through May from last year’s record of $939.9 billion in July 2009, according to the Treasury Department, which releases new data today. Read more

US 'Virtually Certain' to Fall Into A New Recession: Rosenberg

The US economy is almost certainly headed back into a double dip recession, and economists aren't seeing it because they're using "the old rules of thumb" that don't apply this time, well-known economist David Rosenberg told CNBC.

Consumers' focus on shedding debt rather than spending will prevent the economy from growing and bring a halt to the recovery, said Rosenberg, a former Merrill Lynch economist who now works Gluskin Sheff, an advisory firm based in Toronto.

"The risks of a double-dip recession—if we ever got out of the first one—are actually a lot higher than people are talking about right now," he said. "I think that it's almost a foregone conclusion, a virtual certainty."

Rosenberg has long been pessimistic on the economy, believing thatpersistently high unemployment, weak economic indicators and massive debt-cutting—deleveraging—by consumers and businesses will send the economy into a double dip.

Though many economists disagree with Rosenberg about another the chance of another recession, his views are widely followed on Wall Street and have often been accurate. Read more

Forex-Eurousd

As predicted Euro retraces as it loses its upward momentum.

Showing lack of momentum.

Time to consider short as weekly chart indicates overbought and price action indicates losing momentum in its upward movement.

Forex -Eurousd broke daily 200 MA

As predicted, Euro broke its 200 MA on the daily chart (red line) and moved higher.

Sell the Dollar On Data and Fed: Currency Strategist

As the market speculates on whether the Federal Reserve will ease monetary policy at its meeting on Aug. 10, one analyst is predicting more losses for the dollar.

The Federal Reserve headquarters in Washington, DC.

Fed Chairman Ben Bernanke and the Federal Open Market Committee (FOMC) will change the tone of their language to indicate to the market that the Fed sees the risks on the economy to the downside, Thanos Papasavvas, head of currency management at Investec Asset Management, said.

“Next week we will get a change in language and Bernanke will then wait for two or three months to see if the data will warrant a move on further quantitative easing,” Papasavvas said.

This will be dollar negative, with both weak data and expectations of further Fed easing driving the US currency lower, he predicted. Read more

Expect a higher Euro

As predicted, Euro retraced and moved up again to challenge the 200 MA in the daily chart (red line). Expect a breakthrough after its hourly chart retraces to build up the push through.

Euro - to challenge 200 MA

Expect Euro to challenge the daily chart 200 MA. Also expect Euro to retrace from 200 MA from its first challenge as it is in overbought territory, and subsequently break through as the weekly chart indicates that it is more likely to complete its fib 100% and bollinger band. With the expectation that US is likely to continue printing USD, this gives market the reason to short USD and therefore provides Euro to move against USD.

Forex-Eurousd

As predicted Euro marched ahead after breaking its resistance.

Fed Printing May Create 'Final Crisis': Marc Faber

The Federal Reserve will create a "final crisis" by continuing to print money because it is underestimating the strength of the economy, Marc Faber, the author of "The Gloom, Boom and Doom Report," told CNBC Tuesday.

And investors who share his bearish view would be better off holding stocks instead of bonds in their portfolios, Faber said.

Analysts have said the Fed will decide to re-start easing monetary policy, possibly by buying assets, as early as Aug. 10 when the next meeting over policy is scheduled.

"Investors should have listened to me already six months ago when I wrote that the Fed will continue to monetize … they will print and print and print until the final crisis wipes out the whole system," Faber said.

Fed Chairman Ben Bernanke has "no clue what the economy is doing," and the Fed "misread in the last few months the strength of the economy," he added.

He sees "significantly more" quantitative easing ahead. A report in the Wall Street Journal said the Fed might decide on buying government bonds or mortgage bonds again. Read more