Forex Update

EUR/USD Daily Commentary for 4.22.09

The EUR/USD continues its consolidation between our 2nd tier uptrend and downtrend lines, a sign that we could see a little near-term pop as investors bite on what may be oversold conditions. The EUR/USD is experiencing stability due to a better than expected Claimant Count Change number in Britain.

However, any near-term gains could be mitigated due to the highly psychological 1.30 lying just above present levels. Hence, the EUR/USD should experience more relative consolidation over the next 24 hours as investors await the flood of manufacturing and services data tomorrow.

Gold Daily Commentary for 4.22.09

The rally in gold cooled yesterday as the precious metal failed to test the highly psychological $900/oz mark. Gold is calmly walking along today despite a downturn in the S&P futures after a negative earnings release from Morgan Stanley.

The recent performance of gold has been erratic at best, and it's difficult to gauge what the precious metal has on its mind. While seemingly committing to the downtrend at the beginning of April, gold has since re-approached $900/oz twice.

Crude Daily Commentary for 4.22.09

Crude recovered some of its losses yesterday as U. S. equities posted solid gains on the session. However, the stabilization is proving temporary as the futures head south again today.

We've noticed a considerable spike in volume recently, likely due to bulls taking advantage of what they view as oversold conditions. Despite buyers coming to the forefront, the futures have made a clear commitment to the downtrend by setting new Aprils and bidding farewell to the important $50/bbl level.

Treasury Bond Daily Commentary for 4.22.09

The downtrend is really taking hold today as the 30 Year T-Bond futures look to fall beneath 4/20 lows. Volume is picking up and we notice a tight positive correlation with U. S. equities. The pressure remains to the downside as the 30 Year futures trade well below our 2nd and 3rd tier downtrend lines.

The futures are headed towards fundamentally significant territory, particularly March lows. Though the lows seem far away right now, they could be reached faster than one may anticipate. The negative performance of the 30 year creates an interesting scenario.

EURO USD Forex Trading Tips and Analysis for Day Traders

Rate has inside-range day so far failing to extend to a new low on follow-on selling overnight; rate reaches to tech support around 1.2880 but traders say conditions are still on the thin side. Rate has two-way action into the lows suggesting short-term traders and profit-taking by the shorts.

Support at or around the 50 day MA now being tested; the 50 day MA is next level needed to hold for the bulls to feel comfortable this week. Need a rally back over within 72 hours for the drop to be considered a correction and not a breakout.

GBP USD Technical Forex Analysis for Forex Traders

Rate extends briefly into the 1.4400 handle and rallies out as shorts cover; stops over the 1.4620 area are large lifting the rate to new highs. Holding firm into the close more upside is likely overnight. Stops said to be building above the 1.4720 area after rate clears close-in stops.

Tests of the psychological 1.5000 area now complete with the pullback likely about over. Rate likely to find buyers on any dip to the 1.4500 area as this was the breakout area. Rate is still holding the 100 day MA nicely and aggressive traders can look to buy dips.