Euro updates

Yesterday Fitch has downgraded for one more time Greece to CCC rating, placing its credit rating deep into the junk terriotry. However the Euro was rising on Wednesday and found resistance at the 1.4281.  The reason for that was the latest U.S debt warnings from Moody's and that Ben Bernanke is ready for a new stimulus plan in other words quantitative easing program. The latter has devaluated US dollar against its counter parties including Euro.

The timing of the news on US debt has helped Greece and Europe as the focus turned on the other side of the Atlantic, but the problem still remains in Europe. Greece at the moment does not have a new and fully funded financing program and the prime minister George Papandreou said that the euro zone and the IMF must quickly approve a second bail out for his country to avoid its economic reform plans to collapse.

The correction of the euro up to 1.4281 represents a 61.8 fibonacci retracement, is strong short term resistance and is a good point to go short if one considers technicals are working. With the fundamental problems of euro zone remaining unsolved the euro could go lower than 1.3837 support level that touched on Tuesday.

For the time being i wish you enjoy some mojitos or caipirinha on the beach while euro leaders will be struggling to save their creation, summer mood is the mood!!!!!!!!!!!!

have a nice summer 

EURUSD 14/07/2011 5:50am GMT

 

Wednesday July 13th, Major Currencies Performance

EURUSD

On Tuesday the 12th of July the Euro was in focus by investors.  Early at US session when US trade data were announced the greenback continued gaining ground against the euro.  Moreover the euro yesterday fell to its lowest level in four months versus the US dollar and the Swiss franc on fears that euro zone leaders are failing to manage risks in peripheral countries. Sovereign debt crisis contagion worries are increasing as borrowing costs for Spain and Italy is at record highs for the last 14 years , and their ability to meet their obligations is becoming more difficult. The euro was also falling across the board after Moody’s downgraded Ireland credit rating into junk territory.  The euro against the greenback fell aggressively down to the 1.3837 and found support there. The single currency fell below the 200-day moving average and bounced up after upbeat Chinese data that increased the risk appetite finding resistance at the 1.4052. Against the Swiss franc the euro plunged to the 1.1546 support level and bounced up to the 1.1719 resistance. The Japanese yen benefited from euro woes hitting a peak against the US dollar pushing at the same time the EURJPY to drop down to the 109.55 support while it found resistance at the 111.93. 

US Dollar

The Japanese yen was benefited from sovereign debt worries in euro zone as the USDJPY pair fell down to the 78.42 level the lowest in the last four months, then stepped back from lows as the overall risk appetite was improved. Versus the Swiss franc the US dollar fell down to 0.8280 support with the Swiss franc gaining ground in an uncertain economic environment. The Aussie was also down trending since the previous week, however yesterday found support at the 1.0523 and bounced up to 1.0641 resistance.  For the time being the financial markets are focused to the European Union leaders emergency summit expected on Friday until then the euro is most probably going to remain vulnerable. 

Charles Henry Dow

Today is the birth day of a great man, Charles Dow. Dow was an American journalist and founder of the first edition of Wall Street Journal. Together with Edward Jones they invented the Dow Jones index (Dow Jones Industrial Average and Dow Jones Transportation Average). Dow is considered the father of Technical Analysis, Dow theory was the begginning and has to do with stock price movements. His theory derived from 255 Wall Street Journals written by Dow.

What is imaginary and what is real?

Nothing is imaginary, actually these will be some of the cars of the following years, as i know no one is yet on mass production. Some are fully electric cars like the AUDI E-tron. E-tron comes with 4 motors and 3,319 lb-ft of torque and a lithium battery, not very clear terms to me but sounds good. Anyway i prefer the fully electric car, even though they need something like 4 hours to charge them.
I will keep uploading new photos of new cars. Leave your comments pls. What cars have impressed you?

How far can go the Gold???

Some say that Gold will go to 2000$, some say it will go back to 800$, some say strong level the 1100$, some say because is advancing is a signal for a new crisis in the stock markets. What do you thing, where is gonna be in one month, in 2 months, in 6 months in a year or in 2 years from now.

At the Chart is the Daily Candles for Gold, my forecast is that most likely Gold will move to the level of 1145 in the case that would penetrade the Strong resistance of 1100.

I upload the above to intrigue a discussion, not to give forecasts or advices.