CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

It smells of co ordination

Article By: ,  Financial Analyst
July 27, 2012 9:00 AM

 

EUR/USD
Range: 1.2270-1.2316
Support: 1.2250
Resistance: 1.2330

Whilst trying to evaluate how badly I called this market yesterday I tried to put into context Draghi’s comment yesterday ‘the ECB is ready to do whatever it takes to preserve the Euro. Believe me it will be enough’ the later reminding me of comments made by my parents in my youth that I initially dismissed only to be told a week later that my ticket for the upcoming Arsenal game had been given to my sister! I feel that the ECB now have to deliver after these comments and with all the traders I speak to saying ‘I just can’t buy it up here’ the market looks set to squeeze further. Technically 1.2330 is a huge level and we failed initially yesterday but the retracement is light with initial support now seen at 1.2250.

 

 

 

GBP/USD
Range: 1.5665 – 1.5702
Support: 1.5520
Resistance: 1.5750

Sterling like all other currencies in the G10 space consolidates at elevated levels following Draghi’s comment inspired a risk rally. I agree there is no fundamental reason to buy the queens currency confirmed by the release of GDP at -0.7 this week but 1.5450-1.5470 has held and we now look set to test 1.5750. I’m long risk and will add on a break of 1.5750 bar any contractions from the ECB president.

 

 

 
AUD/USD
Range: 1.0383-1.0442
Support: 1.0350
Resistance: 1.0450

The lifestyle currency benefits from both the risk rally and Central Bank diversification with the 1.0500 target now in sight. As mentioned it feels like Central Bankers are telling us they are ready to take action with media rumours in the US that FED are ready to pull the trigger on QE3 and the stark warning from ECB members that they will act to stop rising debt yields. All about the US GDP today with a consensus of 1.4% but get some rest this week-end as next week we have a busy calendar with the FOMC, ECB, and BoE oh and NFP.

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024