Andrei Tratseuski's  Instablog

Andrei Tratseuski
Send Message
Andrei Tratseuski currently works as a Currency Analyst at Forex Club LLC. Andrei was a key speaker at 2011 New York and Dallas Trader's Expo, his work appeared in variety of publication both online and print. Recently Andrei's commentary appeared on WABC Radio, Nasdaq.com, MarketWatch,... More
My company:
Forex Club
  • EUR/USD: Crossroads ahead 4 comments
    Jun 17, 2010 9:41 AM | about stocks: ERO, FXB, FXC, FXE, FXF, FXY, GBB, JYN, SPY, UDN, UUP, BEP-RETIRED, GRE, BEO, FEZ, GLD, SPY, VCR, XLY, EZU, ADE, EWA, CNY

    Better than anticipated government bond sale in Spain, sparked a risk appetite rally in the Euro. Adding to better news were superb retail sales in the U.K. Meanwhile, economic event in the United States were not market moving as Consumer Price Index came in-line with the expectations. The following puts us at bay of technical analysis guiding the markets instead fundamentals, in today's trading. However, the technical analysis is on cross roads of both directions.


    The following situation puts us between a rock and a hard place in terms of trading. In yesterday's article, we stated that the EUR/USD will once again go back to the support line, but remain in an uptrend, http://www.dailyforex.com/technical_analysis/2010/06/_5110_dailyforex-news_EUR_USD__A_Short_Term_Uptrend.aspx. Nonetheless, now the situation is completely different, the intermediate trend may be coming to an end. However, how high will the pair go before it turns around is anyone's guess. A word to the wise, sit out for a bit until decent set-ups are originated.



    Disclosure: No Positions
    Stocks: ERO, FXB, FXC, FXE, FXF, FXY, GBB, JYN, SPY, UDN, UUP, BEP-RETIRED, GRE, BEO, FEZ, GLD, SPY, VCR, XLY, EZU, ADE, EWA, CNY
Back To Andrei Tratseuski's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (4)
Track new comments
  • CKachi
    , contributor
    Comments (49) | Send Message
     
    The Long Term trend is clearly still a gain in the power of the dollar over the Euro...this maybe a possible setup for the Euro to bounce back for a short period.
    17 Jun 2010, 07:11 PM Reply Like
  • Andrei Tratseuski
    , contributor
    Comments (23) | Send Message
     
    Author’s reply » THe analysis is done each and everyday for the currency. Even though this might be a temporary correction from an overall trend, a temporary bottom has been established. The fundamentals are still not looking superb, I would personally wait for 16.2Billion Euro bond rollover of Spain during the following month to see how strong the Euro system is. The banking sector and its ability to lend, meaning less illiquidity would be beneficial for the Euro. However, everything else aside as long as the world markets tend to perform well, the Euro will gain due to its risk appetiate correlation.
    18 Jun 2010, 09:11 AM Reply Like
  • Mikeaaa
    , contributor
    Comment (1) | Send Message
     
    Do you have any directional indicator opinions on 16.2Billion Euro bond rollover of Spain during the following month
    2 Jul 2010, 11:38 AM Reply Like
  • Andrei Tratseuski
    , contributor
    Comments (23) | Send Message
     
    Author’s reply » There is a huge probability that the debt will be rolled over with success. Looking at the debt buying of previous offer on June 1st we see that all of the debt got bought out. Spain offered up to euro3.5 billion, and sale was 1.7 times oversubscribed. Meaning that there is more demand for the bonds than the offering amount. The reason why it is so in demand is because the rate is around 3.65% for a 5-year bond. Knowing that there is a backing of IMF and EU behind Spain, if it gets in trouble, the investors are pulling into the markets. Given the information and a successful past offering, the rollover debt should not be a problem for Spain.
    2 Jul 2010, 12:13 PM Reply Like
Full index of posts »
Latest Followers

StockTalks

  • Currency Market likely to consolidate prior to special EU summit tomorrow.
    Jul 20, 2011
More »

Latest Comments


Most Commented
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.