Forex Weekly Analysis – 15th Nov

We are seeing increased volatility in currency markets due to growing worries in Eurozone and unsettling harmony between G-20 nations. Last week G-20 summit failed to reach agreement on currencies, at the same time China,Japan and Germany criticised US of devaluing its currency by printing more money.

Earlier this month Fed decided to print $600Bn over next several months in anticipation that it will likely to aid US economy. Most analyst are worried that these dollars will trickle through to emerging economies and cause asset bubbles, appreciate their currencies and increase inflation.

EURUSD this week is going to be affected by decision from Ireland if they are going to need help from EU to deal with debt issue. Other EU countries are insisting on Ireland to accept bailout to increase confidence.

Looking at weekly charts EURUSD dropped sharply from Weekly upper trendline last week and looking to head lower. If Ireland refuses to accept help then EURUSD could fall below 1.3500 and find support at 1.3300

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Forex Daily Analysis – 9th Nov

EURUSD fell for a second day with concerns hovering over some European governments with their ability to pay back debt. In my opinion this is just a correction in the long term rally, and EURUSD and GBPUSD are likely to rise in coming months. So far there are no signs of downtrend to continue much longer.

4 hour EURUSD closed below trendline yesterday and kept moving lower as we discussed in yesterday’s analysis. Right now it is looking to head lower towards Support at 1.3800. It is likely to head upward from this level. In an even where it breaks and close below 1.3750 then it can open room for further down move.

G20 summit is the key news items this week. While countries are talking about ending currency wars, rift between China and US is increasing. US has blamed China for keeping Yuan low to gain competitiveĀ  advantage. On the other handĀ  FOMC decision to implement QE2.0 in turn will devalue Dollar, which won’t go down well when US tries to convince other economies to stop manipulating their currencies. It will be interesting to see how it plays out later in the week.

By the way keep an eye out for update later today regarding our services.

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