The EURUSD is maintaining the trend lower. The topside trendlined now has three points along the line. The bottom, less steep trendline has 3 points (and one failed break). The sellers are still in control with the 1.2775 level as the bottom target now.   I would look for buyers against this level as it…

The US dollar is down on the day against all the major currencies except the NZD which suffered continued earthquake tremors over the weekend (the above chart shows the dollars change agains the major currencies). The China/Japan pact over the weekend got the dollar off on the wrong foot and that has…

The ECB loan program whereby they will extend credit out to 3 years at the average of the ECB's benchmark rate (currently at 1%) was subscribed to the tune of $645 billion today.  This was much larger than expected but I am not surprised.  With the ECB likely to keep rates low for an "extended period of time" (the Feds chosen words, not the ECB's at least publically) now, the money represents virtually fixed liquidity at a low 1% yield or less if the ECB cuts more.  Banks decided to take the…

The EURUSD has enjoyed a nice trend day to the upside today on the back of better German data and also better US housing data.  Stocks are up nicely as well which is contributing to the risk on trade and buying of the EURUSD.  However, the pair is currently testing key topside resistance at the 1.3131-37 level. The level is the underside of a broken trendline (1.3137), the 38.2% of the trend move down (at 1.31315) and the 200 hour MA (1.3134) . For a closer look at…