6ECONT and EURUSD: hard way up

03 November 06:39 AM

Yesterday the common European currency managed to update its local high, getting close to 1.4060. However the movement looks weak. Even though from the technical point of view GBPUSD shows uptrend, in practice it looks like everything may rapidly change in the short run.

 

Nevertheless, most investors tend to express positive sentiments, noting that EUR has reached its max value since Oct 25
^th
. It happened in spite of the fact that the yield spreads of the Spanish and Irish treasury bonds had grown against the German bond yield spreads. Such an ambiguous situation makes EURUSD look uncertain in the mid-term perspective, increasing risky sentiments.

 

Today’s macroeconomic data may turn out to be a significant market accelerator as there are many important news releases expected for today:

8.00GMT   - EU news block

09:30GMT - PMI Services (GB)

USA news

12:15 GMT - ADP Employment Change

14:00 GMT - ISM Non-Manufacturing Composite, Factory orders

14:30 GMT - Crude Oil Inventories

18:15 GMT - Federal Open Market Committee Rate Decision

 

Nov 3^rd 2010. The Department of Volume Analysis, Masterforex-V Academy, has defined the following market dynamics:

The mid-term dynamics of EURUSD is upward

The short-term dynamics of 6ECONT (EURUSD):

 

In terms of trading volume, 1.4005 is a fairly significant level (over 1000 lots of volume). A breakout with an impulse of more than 50 pts down will testify to a deep retracement against the current uptrend. If the price consolidates above it EURUSD may get further support to conquer new heights.

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