fibonacci Posts on Forex Blog
Italian GDP Sends European FX Lower
Aug 8, 2008
Italy, the 3rd largest economy in the Eurozone, reported a preliminary -0.3% reduction in Q2 GDP overnight.
Previously, Italy had recorder a 0.5% increase for Q1 and -0.3% for Q4 2007.
News of the negative GDP has sparked a technical busting rally in the Greenback against the Euro, Pound, and Franc.
The EURUSD is trading at 1.5066, 100 pips below the 50% fibonacci retracement of 50%. This is a sharp drop below the 1.53 - 1.60 range the pair has traded at since March.
The GBPUSD is also seeing technical levels shattered. The pair is trading at 1.9201, 200 pips below the the 1.94 support.
The USDCHF is trading at 1.07, a 5 month high and well above 1.06 resistance.
In related news, ECB Governing Council Member Wellink indicated Friday the ECB was ready to raise rates should CPI climb higher. He also reinforced recent market expectations for negative Euro-zone GDP growth in the second quarter, stating "I think it won't look so good"
fibonacci, Euro, European Central Bank, GDP, EUR
British Pound Bull Run - Buh Bye?
Apr 4, 2008
The British Pound (GBP), has been the winning horse in the USD trade for several years now. In 2001, the Sterling was 1.40, 36% below the high of November 2007.
The US housing sector looks bleak (like the Cubs, *sigh*), commodities are shooting through the roof, the Dems + media are talking down the economy daily, and the USD just had the worst quarter in 4 years. So the Pound will soldier on, right?
Not so fast! In this video, Adam Hewison examines the future prospects of the GBPUSD trade Using MarketClub's triangle trading system and Fibonacci retracements, he shows technical analysis suggesting the GBP is about to give up some of its' strength. Specifically, the GBPUSD market has already crossed the 32% fibonacci retracement from the high of 2.1161. After a short rebound from the 32% line, the market appears headed to the 50% retracement of 1.9109.
If that all sounds confusing, dont worry! Adam keeps it simple. and the charts do a great job of telling the story. Watch GBP/USD Technical Analysis
fibonacci, GBP, Pound, USD
