Forex News, Analysis and Comments on Robots

EUR/USD was at the highest since December 21 as yesterday’s pledge of the Federal Reserve to keep interest rates low at a prolonged time continued to push the dollar lower. Macroeconomic reports weren’t helping the US currency as housing and jobs data was negative, while leading indicators rose less than expected.

Initial jobless …

Why it is important to look at trading in terms of probabilities rather than absolutes.

Today’s price action shows a Doji currently forming on the EUR/JPY daily chart, indicating indecision and the potential for a shift to selling pressure into the end of the week. From a fundamental perspective, some measure of profit taking is likely ahead of the weekend, assuming no agreement is reached on the Greek Private Sector Involvement, or PSI. If the EUR/JPY breaks below today’s European session low, it would suggest a higher probability of a drop down to the key 1.0100 level mentioned above.

A bearish butterfly pattern is forming on the EUR/GBP.

The convergence of the monthly pivot at 1.4538 and a longer-term bearish trend line led to this morning’s GBP/CHF drop and forms a very significant resistance zone moving forward. While the risk/reward ratio of joining this longer-term bearish trend at market is not compelling at this time, there is an opportunity to sell if rates bounce.