Forex Bull

Olivier Desbarres, director of FX Strategy at Credit Suisse does not think the Swiss National Bank’s direct intervention in the FX market marks the start of competitive devaluations.

Student?s Question: This might seem like a silly question… but please can you help me better understand the table extract attached by providing me with the rational/formulas used?

Euro-zone retail sales are expected to have increased by 0.2% in January as declining energy costs increases consumers purchasing power. However, the year-over-year reading is expected to show a 2.3% decline, which would be the eight straight negative month.

China’s Premier Wen Jiabao reassured the world on Friday that China would deliver on its promise of 8 percent growth in 2009 despite a slate of challenges, and could roll out extra stimulus spending if needed to meet the goal.

Now that my outlook from the previous post on EURUSD has already been confirmed (http://blog.fxinstructor.com/10-reasons-i-like-eurusd-longs/), my eyes turn to the Aussie as a nice reversal setup is trying to kick in on this one as well. Here’s what we have so far, in a nutshell: 1) Weekly chart: last retracement wave on D1 (red) bounced AGAIN from the key support level @0.6290 (78% fib, last frontier for the bears). The weekly low is now @0.6008, and the large ABC correction on weekly seems to have ended with double bottom @6290

The Euro consolidated gains in overnight trading, oscillating around the 1.29 level. Euro Zone Retail Sales are expected to show the annual pace of decline accelerated to -2.3% in January from -1.5% in the previous month, issuing the eighth consecutive month in negative territory.

PK Basu, chief economist at Daiwa Institute of Research thinks it will be very difficult for China to achieve 8% real GDP growth this year. He tells CNBC’s Oriel Morrison why.

The Swiss National Bank’s direct intervention in the FX markets to weaken the Swiss franc will only help in the very short term, says David Mann, FX strategist at Standard Chartered Bank. He explains why to CNBC’s Amanda Drury.    Watch Video MEDIA: VIDEO Permalink

Fri, 13th of March, 2009 By Setyo Wibowo (analyst@fxinstructor.com) EURUSD Outlook The EURUSD attempted to push lower yesterday, bottomed at 1.2731 but further bearish scenario was rejected as the pair whipsawed to the upside, topped at 1.2943 and closed at 1.2898 . The pair make a significant bullish correction this week but on daily chart we have a Hanging Man candlestick formation suggesting a potential bearish warning as the price approaching 1.2988 resistance level, a potential double top formation

Posted By: Reuters The euro jumped to a two-month high against the yen but pared earlier gains against the dollar after reaching a 2-1/2 week high, helped by solid gains on equity markets.    Read More Topics: euro | Economy (U.S.) | Economy (Global) | Foreign Exchange | Interest Rates | Employment | Currencies | U.S. Dollar | Yen MEDIA: PHOTO Permalink