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Forex Trading

EUR/USD finding short term trend line support

The pair is testing trend line support on the 15 minute chart; currently trading close to the lows. If support continues we look back towards 1.3104 as the topside target. We may see some more risk as the Nikkei trades in the positive.

usd/hkd breaks through this upward wedge.

usd/hkd breaks through this upward wedge giving a bullish signal and we also see the top of the wedge is becoming a support for the pair.

oil/usd break through this sideways channel.

oil/usd break through this sideways channel giving a bullish signal.

Comments from a Senior Fed Official…

  • Expects banks to continue building capital.
  • Banks have 30 days to resubmit distribution plans.
  • 4 banks wont have distributions approved.
  • Fed loss models are higher than those of the banks.
  • Capital positions improved in 3 years.
  • Fed plans to release stress test results annually.
  • No order for banks to cut announced dividends.
  • Stress tests are not the only factor involved on the capital plan review.
  • JP Morgan didn’t prompt early release of tests.

 

Fed says 15 of the 19 banks had capital above minimum levels.

  • Stress test doesn’t represent prediction for the economy.
  • Depicts impact from 21% fall in home prices.
  • Depicts 50% drop in stocks, 13% jobless rate.
  • “Majority’ of US banks would meet “supervisory goals”.
  • Capital ratio of Suntrust bank was too low.
  • Ratios of Ally Financial, Citi were too low.

Shorter term traders trade….Keep EURUSD above the 1.3053 support


The selling has dominated in the EURUSD since the FOMC decision, but the traders continue to trade the levels. The proof is the bounce off support at the 1.3057 level – just above the key support at the 1.3053 level. The pair will now eye the 1.3081-88 level (see yellow area) as the traders resistance. If it holds resistance, there still is a chance for the key support to be broken. A move much above this level, would not be welcomed.

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