Taking a look at 4 hours charts, the pair is recovering some bullish strength, after a 61.8% correction of this week rally. Momentum has turned to the upside, yet not clear signs from indicators at the moment, as the candle have just started, yet open under the 20 SMA. The pair has just attempted to get above the 1.2800 level, yet failed. In fact, I can see a tough congestion zone between 1.2800/1.2830, that could give the pair a hard time to the upside in the next hours. Above it, next important resistance will be @ 1.2880, then some pips above the 38.2% of the rally, @1.2940 and finally 1.2975. Under 1.2745, 1.2690 will be exposed, and under that zone, 1.2655 will be the target to consider.

Let’s turn to weekly charts and see what happened: yesterday’s maximum reached exactly the 38.2% of the down leg coming from 1.4867, and the pair rebound really quickly from there. Momentum is still pointing to the downside, yet the pair is way too oversold. 20 SMA is bearish, and price is under the 200 EMA. Next week opening will certainly clarify the situation (and of course, today’s close) but the bearish longer term strength is still there, despite the oversold condition, as long as the 1.3300 zone holds;  actual price is not the best shorting option. RSI should correct before a continuation.

Hi everybody how are you? Last day of this crazy October. I cannot remember a month like this in the last years, with the many wild movements one way or the other we have seen lately. World is trying to reach a new international balance, in the middle of one of the  largest worldwide crisis; maybe, it’s a redundancy to say that it’s quite logical in this XXI century to see a wall falling in America and the bricks falling in Oceania. What’s not logical at least for me, is the way things happened. Could this be prevented? Why things reach this level? Where is the root of this global economic slowdown? Could the answer be, just human greed? Speculative bubbles? This kind of toughts are like a slap in my face, reminders of how do I like to spend the short time I will spend in this earth: do I live for the money, or is the money there for me to live?. What’s the sense of accumulating billions and trillions, when I see hunger (and not for money, real hunger) in the streets and not only in my country? Maybe this is not what many of you are expecting to read here today. But let me tell you, this afternoon after school, I will turn my computer off (instead of planning next week job) grab my girls hands, and go to the park, to the cinema or to the moon if they wish to. We will return home late at night, dirty, tired, yet with our hearts full of joy.

Don’t be to greedy with market; don’t be to scared. Plan a trade, set a stop set a limit; the result doesn’t matter: don’t regret getting a few pips with your limit if you see  a bigger run to your side after it; don’t be scared to try again if you were stopped out. Plan another, move on. Stick to your plan, if you trust it; made another if you don’t and test it before risking your money. Use leverage wisely and enjoy this f…g life!

You can check today’s most important news, following this link:

http://www.fxstreet.com/fundamental/economic-calendar/

I will be back in a few minutes, with today technicals. Have a grat day!

Japanese Yen remains moving sideways, yet above the key 98.00. Also stocks start in a positive way today, so maybe we could consider go long in this pair, just above 98.86, targeting first, the zone @ 99.10, ans between 99.30 and 99.45 above it.  Under 98.20 the pair could turn to the downside, with next supports at 97.82 and 97.29, not seen for today.

Quoting @ 1.3080, the pair is also tending bearish in the shorter term, correcting last night rally: a confirmation under 1.3064, 23.6% of 1.2330/1.3288 rally, could push the pair to the zone around 1.3320 first, followed by 1.2985 and finally 1.2920, 38.2% of the mentioned rally. Above 1.3116, next resistances will be at 1.3154, the zone @ 1.3230, and them today maximum at 1.3288.

The pair has reached a quite interesting key level earlier today, posted some days ago as longer term analysis: the 61.8% of the last daily fall from 1.7517 to 1.5269, @ 1.6655. So the movement till here, could be considered as a correction in the longer term, as long as today maximum holds. Of course we will have to wait and see where and how the day ends, to consider a longer term continuation for the pair. Right now, 4 hours charts are losing steam and despite the strong bullish trend, the pair is turning bearish: under 1.6515, the pair could try to reach next support at 1.6470, followed by 1.6428, the zone around 1.6390 and finally and more stronger 1.6336. See the divergence between candles and momentum that seems to be starting. On the other hand, above 1.6565, the pair could regain the bullish strength and continue first, to the zone @ 1.6600, followed by 1.6636 and finally the daily maximum at 1.6671. Above this last, the longer term bullish continuation could gain extra points.

Hi everybody, hope you’re fine!. Octobers come to an end, and for those of you that followed the FOMC live! coverage, it’s not a surprise the bearish dollar we are seeing since the beginning of Asian session. I have to say I was not expecting such rallies, particularly in European majors yet trend was quite clear just one hour after FOMC, and finally we are getting used to them; that’s why I always say we need to readjust our trading systems, strategies or methods, to market conditions, remember, this won’t last either!

Maybe you can consider me simple, yet another thing that i never get tired of repeating, is that fundamentals are just “noise” in the market and hardly interrupt the trend; in fact, previous trend was already dollar bearish, and majors respect during the retracement, key support zones, where rebounds were expected and actually happened. I always preferred Technical analysis over all, and seems it doesn’t work that bad

Today we have will have the following news, East Time:

08:30 USD Advance GDP q/q (Expected -0.5% Previous 2.8%)

08:30 USD Advance GDP Price Index q/q (Expected 4.0% Previous 1.1% )

08:30 USD FOMC Member Kroszner Speaks

08:30 USD Unemployment Claims (Expected 476K Previous 478K)

10:35 USD Natural Gas Storage (Expected 41B Previous 70B)

 Be back in a few minutes!

I will be covering the FOMC decision live at Fxstreet.com home page.

See you there!

The pair is struggling to continue to the upside, and seems quite likely, it the 97.60 zone is cleared, targeting 98.00 first, and the zone around 98.40 then. Take a look at US stocks and the movements there to follow this pair.

Gbp/Usd is also continuing the bullish rally proposed yesterday, although the pair has find a tough zone around the 38.2% if the daily fall measured from 1.7517 to 1.5278. 4 hours charts has turned slightly to the downside, with 1.6000 as a first support for the next hours, yet if broken, the pair will quickly approach to 1.5926, followed finally by 1.5874. Further falls, seem tough for today. To the upside, 1.6064 is the first resistance to consider, above which, the pair could quickly approach to the 1.6100 zone; next resistances will be at 1.6157 and finally today’s high at 1.6220.

The Eur/Usd, is bullish in 4 hours, after hitting a few minutes ago a fresh maximum at 1.2845 also the 76.4% of the last downleg any movement above that value could trigger a bullish continuation first, to the zone around 1.2880 and finally the zone around 1.2930. Supports from actual price are 1.2780, and the zone around 1.2744 (61.8% of the mentioned rally) that should offer rebound if reached. We need a 4 hours candle opening under it, to see a bearish really to the zone around 1.2700.