Daily Forecasts - Currency Technicals and Fundamentals

[Forexrazor]

EUR/USD Commentary and Trade Ideas


The failure of the Euro to spend any significant time above the 1.40 level, has unnerved the bulls and probably caused a little selling. If the retracement resumes today and takes the pair into the 1.37/1.3750 level I want to try the long side. The economic sentiment in Euroland might be a little better, hopeful of a better future. Yesterday's US Treasury auction of 5 year notes brought glowing reports of foreign central bank participation right before the bond market tanked and the rates appreciated sharply. Something is not right about this picture. Maybe today's 7 year note sale will provide clarity. It does appear that quantitative easing, the newspeak term for printing money, is unable to stop the upward march of rates. With the GM bankruptcy pending, has the market discounted this event? The tentacles of GM are extensive and I doubt this will be bullish on the dollar.

Bias: Higher Bias Term: Long Support: 1.3850 1.3800 1.3730 Resistance: 1.3920 1.3980 1.4050

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[Forexrazor]

It looks like the Euro, now trading around 1.41, is destined to spend a little quality time above 1.40. The highest weekly close since Sept 08 was 1.4064 so this close will be meaningful. Further, this is the last trading day in May, and those holding the winning hands often "paint the tape" to enhance their month end statement. The Euro economic news is mixed with equities higher and German retail sales a little better,

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