Forex Signals – EUR/USD Bulls Force Consolidation

Stop hunting at it’s finest

Hope you shorts did get out in time

should have got out at 1.47 :-( , apart from stophunting , is there any other reason for the spike?

EU to help greece on a bilateral agreement – Almunia says!!!

Did anybody re-entered at 1.375?

Im just gonna stay out of this. Have a good day/night

good luck all!!! talk tomorrow :)

peace

What’s happening?

Wall Street shares pushed higher on Tuesday on expectations that European officials would move to rescue Greece from its debt troubles.

Reports that European leaders would meet to discuss how to contain a brewing debt crisis in Europe initially reassured investors, who had worried that Greece and other countries that use the euro, including Spain and Portugal, would be unable to pay back their swelling debt.

But European shares lost some of their momentum after the ratings agency, Fitch, said that Greece’s medium-term outlook was cloudy and that Britain needed additional austerity measures to rein in its deficit..

In recent days, the concerns over Europe have ricocheted through global markets as investors question whether other nations, including the United States, will face similar debt burdens after spending huge sums to stimulate their economies.

Reports that Jean-Claude Trichet, the European Central Bank president, would leave a conference in Australia early to take part in the meeting helped to lift major indexes in Europe and the United States.

Shares on Wall Street surged more than 1 percent shortly after the open but retreated in late morning trading. For some investors, the move higher was a welcome reprieve from a recent bout of steep losses, coming a day the Dow Jones industrial average tumbled below the 10,000 threshold.

Since Greece’s troubles reached a flashpoint last week, all attention has been on the stability of the European financial system. Investors have tried to gauge how severely American financial institutions would be affected by foreign defaults. They remained concerned about the potential ripple effect for international credit markets, with memories of the havoc wreaked by the collapse of the United States housing market still fresh.

Philip J. Orlando, chief equity strategist at Federated Investors, said a bailout plan for Greece would provide a blueprint for rescue if other countries began to teeter on the brink of default.

“Some of the overarching fears of global contagion will then begin to recede,” Mr. Orlando said. “Greece is first and foremost the touchstone.”

In morning trading, the Dow rose 1.39 percent, or 137 points. The broader Standard & Poor’s 500-stock index climbed 1.22 percent, or 12.87 points, and the technology-dominated Nasdaq rose 1.1 percent, or 23.20 points.

The upward momentum slowed as traders dissected the details of a report on business inventories. The Commerce Department said businesses reduced their inventories by 0.8 percent in December, raising concern on Wall Street that employers were too slowly restocking their shelves — a critical driver of growth for the manufacturing sector.

In Europe, stocks rallied early in the day but stumbled as the end of the trading day approached. The FTSE 100 in London was flat, the CAC-40 in Paris was 0.29 percent or 10.19 points lower, and the DAX in Frankfurt decreased 0.18 percent or 8.50 points.

Traders seemed to be using the downturn in the market — the Dow remains about 7 percent off of its highs in late January — as an opportunity to buy shares on the cheap.

“Uncertainty breeds opportunity,” said Jeffrey D. Saut, chief investment strategist at Raymond James. “The market is pretty oversold.”

Wall Street is in the midst of earnings season, when companies report fourth-quarter results; most companies have topped expectations. That has prompted a round of buying as investors seek to snap up shares of companies that have the potential to garner large revenues as the recovery takes hold.

Shares of Coca Cola were up more than 3 percent after the beverage company reported better-than-expected earnings. The video game maker, Electronic Arts, fell nearly 10 percent after a lukewarm earnings forecast.

The euro also made gains as investors grew more confident in the ability of several European countries — Spain and Portugal among them—to emerge from mountains of debt. The euro strengthened 0.5 percent against the dollar, hovering at $1.37.

any short target suggestion?

The dollar is weakening, bulls in charge now! Shorts the dollar

I love trading,,, ain’t it fun…. Always something new everyday… I had my sell button up on my screen down @ 697 ready to click it for the 680-650 ” Wow ” that was close… I think I am going to go build my bike now.. Talk to ya in the morning…

Good job Mr Tommy on finding that news Thank you once again…:)

NEW YORK (Dow Jones)–The euro rose as much as 1.4% midday Tuesday in New York on media reports that financial aid to fiscally stressed Greece is in the works.

The German government is putting together a rescue package for Greece, according to FT Deutschland, citing sources in the coalition government. Possible solutions include both bilateral support as well as internationally-coordinated assistance at the European Union level. German finance minister Wolfgang Schaeuble will inform CDU party leaders Wednesday over details.

The common currency rose as high as $1.3838 on the back of that report.

“Those reports are helping alleviate the near term concerns about the fiscal stability of Greece,” said Omer Esiner, senior market analyst at Travelex Global Business Payments in Washington.

Around noon Tuesday in New York, the euro was at $1.3812 from $1.3659 late Monday, according to EBS via CQG. The dollar was at Y89.58 from Y89.30, while the euro was at Y123.72 from Y121.97. The U.K. pound was at $1.5706 from $1.5598. The dollar was at CHF1.0630 from CHF1.0722.

The Dollar Index, which tracks the U.S. currency against a trade-weighted basket of currencies, was 79.701 from 80.350.

The euro snapped a four-day losing streak against the dollar as riskier assets rallied in anticipation of a meeting of European Union leaders Thursday. The euro’s advance was triggered during Asian trading hours on talk that the European Central Bank President Jean-Claude Trichet was leaving a central bankers gathering in Sydney earlier than planned to attend the meeting.

However, a spokeswoman for the European Central Bank clarified that Trichet had a long-standing commitment to attend the meeting.

“Better sentiment towards the euro zone is helping the rebound in risk appetite,” said Vassili Serebriakov, a foreign exchange strategist at Wells Fargo in New York. “It’s a question of timing, too. These rumors (of a bailout for Greece) came on the back of an extended period of weakness in the euro and equities.”

Entered short @ 1.3837 target only 50 pips

3862 decent resistance

Nothing too exciting. I warned a move to 1.3750 could happen and that resistance (plus the daily trend resistance – blue trend on chart) are holding and provided a nice area to hide a stop.

Bulls fighting back?

Weird day PIpStar’s luckily i was in with that voloatile move. Speculation is a strong decision maker in this market. It takes heart to trade forex correction euro was so oversold. But that 1.3800 retracement definitely made a stand today no one could’ve predicted that after it dropped from1.3750 earlier 10 1.3690 then back up to 1.3840 now back at 1.377. Whoa right position at the right time is all I can say. Trichet and greece’s aid documents were unfounded if words are not power I don’t know what is. Who you gotta love this market just use stops and avoid margin calls.

going back up again you have to be kidding me is this eur/usd rigged or something lol

Anyone in short now?
This would be a great level Mark??

In the light of the current sentiment I’m changing my outlook to 3850 (in that region) before Thursday
_____________________________________________________________

I’m not saying it will do it tomorrow, but 1.4000 is on the cards

i think sl at least 1.3860?

Well the euro is done with momentum intil the london session. I’m staying in. For some reason I get fair help from the asia session. Who know today though what will happen. Now I see why its hard to tade forex and have a job. {Caution} (Use your stops folks!!!!)

By Laurence Norman
DOW JONES NEWSWIRES

LONDON (Dow Jones)–Nobel laureate Joseph Stiglitz on Tuesday brushed aside the debt market pressures facing Greece, saying they reflected irrational investors “hyperventilating” over a country whose fiscal situation is in hand.

In an interview with Dow Jones Newswires, Stiglitz, who is acting as an informal advisor to the Greek government, said Prime Minister George Papandreou had adopted a smart plan for paring back the debt.

“If anyone looks at the (debt) program they have put forward, it’s actually a very thoughtful program and a comprehensive program that doesn’t try to overpromise,” he said. “It’s not actually clear to me that there is any fundamental problem other than a speculative attack.”

Faced with spiraling borrowing costs, Greece’s Socialist government has presented plans to the European Commission that aims to reduce the budget deficit to 3% of gross domestic product by 2012 from 12.7% in 2009.

The European Union backed those plans last week but has so far resisted committing to intervene on Greece’s side if the financial pressures intensify. However, there were reports Tuesday that European Union leaders were working on some kind of support measures.

Those reports soothed market tensions, reducing Greece’s borrowing costs and the cost of insuring investors against a possible default on Greek debt. However, the yield on 10-year Greek bonds remained some 3.15 percentage points above German bund yields.

Stiglitz said the EU should make explicit its support for Greece and other countries, like Spain and Portugal, facing debt market pressures. He said the EU could consider some kind of contingency fund that could be tapped in an emergency by member states.

“I think the euro zone now realizes this is not an issue of Greece alone. It’s an issue for the EU because of what’s at stake in Spain, Portugal and possibly….other members,” Stiglitz said. “Europe has to make a commitment to support these countries and there are a variety of forms which it could take,” he said.

Stiglitz, who is in London to promote his book on the financial crisis and sat down Monday with Prime Minister Gordon Brown, was scathing in his assessment of the recent behavior of investors.

He said debt market investors “are in the process of hyperventilating,” and he described the recent price moves in the credit default swap market, which measures the cost of insuring against default, as “absurd.”

However he said that with irrationality gripping debt markets, the failure of Europe’s leaders to stem speculative pressures could have a high price.

“Unfortunately, I’ve seen enough of this kind of pattern to know that they can strike anywhere. So nobody’s immune,” he said.

Stiglitz’ attacks on investor behavior are nothing new for an economist who has long criticized orthodox Washington consensus policies and pointed up flaws in free-market theories. However, the former World Bank chief economist and winner of the 2001 Nobel prize for economics, offered kinder words for another of his traditional bete noires – the International Monetary Fund.

Stiglitz said the more relaxed conditions the IMF is imposing on lending programs these days means Greece should not close off the option of approaching the IMF for funding if needed.

“I think that things have changed. Ten years ago my view would have been quite different,” he said.

Stiglitz acknowledged his role in advising the Greek government has not been central. He said he had offered Papandreou “strategic” advise on economic policy ahead of the October election, which the Socialist party won handily. Now, Stiglitz said he stays in touch with the Greek leader and members of his team but is not in daily contact.

And Stiglitz admitted that, at a time when Greece’s government is trying to woo bond market investors, it’s probably for the best that he keeps his distance.

“That’s why I think it’s good that he (Papandreou) has gotten a whole range of people involved and is not relying on just one perspective,” he said. “That’s one of the marks of a good leader I think.”

another doji on 30m charts, I’m going in with:
Sell: 1.3800
SL: 1.3830
TP: 1.3750 ~ 1.3700