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Feb 17
2009
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Market UpdatePosted by veritefx in treasuries, stocks, gold, forex trading, forex signal, forex market, forex justice, forex blog, forex, euro, dollar, crude veritefx, commodities |
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With about 2-hours to go before Wall St. opens we can see all markets under a considerable amount of pressure early this morning. After the break of the 1.2700 level we've seen the euro drop 100-points and is now moving back towards a test of the 1.2600 level as I write this commentary.
My overall view remains bearish on the euro and my price levels remain the same -- as long as wemaintain a sustained break below the 1.2692 level I see more downside and I'm expecting a sustained downside break of 1.2600 and we should see points lower.
German and Eurozone ZEW printed much better than expected but this is mostly due to speculation Trichet will cut rates by 50bps in a few weeks. The euro gained back zero ground on the back of strong ZEW because what we're seeing right now has zero to do with those numbers, there is panic in these markets today.
The S&P 500 futures are at low levels I've never seen before. They've made a few runs at breaking 800, failing each time but the momentum to go lower is certainly there. Should spot crude decide to take another run at the $32 level or lower we could see some slaughter with the S&P 500 futures. Both of these EUR/USD market correlated variables keep downside pressure on the euro.
Spot gold has gone mental so far today trading at the $963 level. I saw gold blow through resistance at $950 and $955 and yet again we see clear evidence of how panicked and freaked the global financial markets are. Market particpants have little faith in the future right now because in reality conditions continue to deteriorate, this cannot be denied by any.
EUR/USD key levels:
Upside: 1.2644 / / 1.2692 / 1.2728 / 1.2759 / 1.2782
Downside: 1.2604 / 1.2592 / 1.2560 / 1.2523 / 1.2487
Trading risk will be extremely high today because it's very likely Wall St. will open with the Dow and S&P trading near dangerous downside levels. Should those November 2008 lows break down and support gives way on the Dow and S&P 500 there's really no predicting what could happen. I imagine we'd see some kind of freefall situation while stops are knocked out and a stoploss run of apocalyptic proportion unfolds in Forex, equities, and commodities. The futures market will go nuts if Wall St. breaks solid support.
Last week I said my gut feeling tells me those November lows will be tested and today could be the day. If not today, in the short-term I believe.
Trade smart today. If your risk appetite is low, sit on the sidelines and pick up the crumbs later on this evening.
-David
My overall view remains bearish on the euro and my price levels remain the same -- as long as wemaintain a sustained break below the 1.2692 level I see more downside and I'm expecting a sustained downside break of 1.2600 and we should see points lower.
German and Eurozone ZEW printed much better than expected but this is mostly due to speculation Trichet will cut rates by 50bps in a few weeks. The euro gained back zero ground on the back of strong ZEW because what we're seeing right now has zero to do with those numbers, there is panic in these markets today.
The S&P 500 futures are at low levels I've never seen before. They've made a few runs at breaking 800, failing each time but the momentum to go lower is certainly there. Should spot crude decide to take another run at the $32 level or lower we could see some slaughter with the S&P 500 futures. Both of these EUR/USD market correlated variables keep downside pressure on the euro.
Spot gold has gone mental so far today trading at the $963 level. I saw gold blow through resistance at $950 and $955 and yet again we see clear evidence of how panicked and freaked the global financial markets are. Market particpants have little faith in the future right now because in reality conditions continue to deteriorate, this cannot be denied by any.
EUR/USD key levels:
Upside: 1.2644 / / 1.2692 / 1.2728 / 1.2759 / 1.2782
Downside: 1.2604 / 1.2592 / 1.2560 / 1.2523 / 1.2487
Trading risk will be extremely high today because it's very likely Wall St. will open with the Dow and S&P trading near dangerous downside levels. Should those November 2008 lows break down and support gives way on the Dow and S&P 500 there's really no predicting what could happen. I imagine we'd see some kind of freefall situation while stops are knocked out and a stoploss run of apocalyptic proportion unfolds in Forex, equities, and commodities. The futures market will go nuts if Wall St. breaks solid support.
Last week I said my gut feeling tells me those November lows will be tested and today could be the day. If not today, in the short-term I believe.
Trade smart today. If your risk appetite is low, sit on the sidelines and pick up the crumbs later on this evening.
-David