Expert Opinions

The EUR USD finished lower on Friday as fear continued to dominate the trade. Despite the approval of the Greece austerity measures by the government, investors are still worried the fiscal responsibility plan will not pass the Parliament. The breakdown in the Euro on Friday did not appear to be a major retreat, but rather reactions to rumors that continued to circulate throughout the day. This is a typical reaction by nervous traders who have been forced to wait until June 28 for the final outcome of the Greece austerity vote. Although the Euro retreated heavily this week, the single-currency still managed to hold the June 16 bottom at 1.4073 that was made when the Euro Zone finance ministers gave Greece a second chance to get its act together before the bailout package would be released. As long as this bottom remains in place and Greece is moving in the right direction, then patient traders are likely to be rewarded when the...

The USD CAD continued to straddle the 50% - 61.8% retracement lines created by the .9973 to .9444 main range. This pair has traded inside of this range since the top was formed in mid-March and the bottom in late April, clearly defining investor indecision. Since the bottom was reached at .9444 on April 29, the main trend turned up in the midst of a series of higher tops and higher bottoms. Although the main trend is up on the daily chart, the rally seems to have run out of steam, setting up a potential change in trend to down on a move through the last swing bottom at .9670. Based on the main range of .9444 to .9898, watch for a potential pullback into a support zone at .9671 to .9617. On Wednesday the Canadian Dollar reached a one-month high against the U.S. Dollar after touching a 50% level at .9708, the USD CAD mounted a quick intraday turnaround and a...

The EUR USD finished the New York session lower as traders shifted their focus from the U.S. Fed announcement to next week’s Greece austerity vote. Early in the trading session there were signs the single-currency was making a top as traders refused to buy strength once the market entered a retracement zone identified as 1.4384 to 1.4458.    Although the Euro tried to mount a rally shortly before the release of the Fed’s interest decision and economic assessment at 2:15 pm EDT, this attempt failed, leading to a sell-off into the close and the formation of a minor reversal top. Based on the short-term range of 1.4073 to 1.4441, expectations are for the market to finish its near-term correction to 1.4257 to 1.4214. Uptrending Gann angle support is at 1.4233, making this a part of a strong support cluster.  If sentiment is shifting back to up along with demand for risky assets, then the Euro is likely to attract fresh buying following its...