Forex Commentary: EURUSD and GBPUSD weekly recap, 12th August 2011

Trading Setups / Chart in Focus:

EURUSD

The EURUSD has been quite boring lately despite the major moves in the credit and equity markets. It seems that due to the recent debt issues in the euro-zone, sellers are coming in and selling any attempts for price to move higher, while underlying concerns about the U.S. economy are keeping the greenback from gaining ground. A move will occur at some point, and it will probably be quite substantial given the amount of consolidation and “coiling” we are seeing in this market. Until then however, we are in hurry-up-and-wait mode.

GBPUSD

The GBPUSD seems to be oscillating between about 1.6450 and 1.6100. These are the support and resistance levels to keep an eye on next week, price will need to break out of this range one way or another to have a chance at making a sustained directional move.

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Forex Commentary:

The euro and dollar looked to extend gains against the Swiss franc in the upcoming week as investors remained cautious about potential Swiss National Bank action to slow the pace of the franc’s rise.

The yen, meanwhile, hovered in a tight range near a record high versus the dollar on Friday, as markets remained alert for possible Japanese intervention to halt its rally.

The euro was little changed at $1.42489, erasing gains as data showing U.S. consumer sentiment worsened in early August weighed on risk appetite.

Other Markets:

On Wall Street today U.S. stocks ended a very wild week with a second day of gains. Trading was very volatile across financial markets this week; Gold briefly topped $1,800 per ounce.

The Dow gained 135.71 points, or 1.1 percent, the S&P 500 rose 6.17 points, or 0.5 percent, and the Nasdaq added 15.30 points, or 0.6 percent.

Upcoming important economic announcements: 8 /14/2011

7:50pm EST: Japan – Prelim GDP q/q

8/15/2011

9:00am EST: United States – TIC Long-Term Purchases
9:30pm EST: Australia – Monetary Policy Meeting Minutes