Forex Blog - Currency Trading Online

Consolidation May Be The Theme For Today

Tuesday, 07 July 2009 12:31

DJIA Under 8200, WARNING
I have been calling for the DJIA to go back to 8200 for over a month now. Even when all the "green shoots" theorists and guru's were say the bottom was in already and we were done with the retracements so we wouldn't see those prices again. Be forewarned. 8200 wasn't the next bottom I was calling either. I have speculated 7800 stopping ground and 7250 further down. Before that happens though, I think we will see a few days, maybe even a few weeks, that rally getting a few buyers back on board before the market takes their shirts and pant again.

Consolidation In The EURUSD Brings The Pair To Test Resistance
After the fall below the support line yesterday, price has risen back to test the support as resistance. I mentioned yesterday that I expected price to test a bit higher, though it has risen higher than I expected. This area is right on the 21 day SMA and it may take a few days to really work through the area and create some directional bias. Earnings and rate decisions are coming up, and will have a distinct effect on prices. Earnings start Wednesday as well EZ GDP, then Thursday presents BoE Rate decisions with QE risk. The Dollar is extremely light on news for the rest of the week.

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