Thanks to the warm responses I’ve been getting lately, I decided to post another midweek market analysis this week. Hopefully this review would be as helpful to your trades as last week’s market analysis has helped me win my USD/CAD trade.
Let’s take a look at what’s been moving the markets lately, shall we?
EU countries decide on Greece’s new bailout package
Last Monday traders shrugged off reports of S&P placing Greece in a selective default because Germany successfully approved of Greece’s newest bailout package. But it doesn’t end there! Apparently, Ireland is holding a referendum on the EU Treaty, and the German Constitutional Court is warning of possible unconstitutional decisions if a sub-committee continues to fast-track euro zone financial aid matters.
Dow Jones Industrial Average (DJIA) soars above 13,000
Okay, I know it’s not exactly currency-related, but I can tell ya it’s been moving markets nonetheless. Strong economic reports from the U.S., as well as optimism on the ECB’s LTRO program hitting us this week, have been boosting investor confidence in the U.S., enough to lift other high-yielding currencies against the Greenback early this week.
ECB to launch another LTRO program
While Greece and the DJIA took center stage early this week, the spotlight really belongs to the ECB as it implements its second longer-term refinancing operation (LTRO). With the program aiming to provide liquidity to European banks, traders are going to watch just how in demand the ECB’s funds are.
They say that a number below 750 billion EUR might be good for the common currency as it signals healthy bank balance sheets and an influx of liquidity in markets, but make sure you stick around in case we see any surprises!
Alright, it’s time to zoom in on how the comdolls have been performing this week!
Both USD/CAD and AUD/USD have been posting gains for past couple of days as rising oil prices, strong Australian retail sales, and risk appetite in markets are all giving support to the comdolls. NZD/USD is also positive against the dollar for the week, but is lagging behind AUD and CAD thanks to a surprisingly weak trade balance report on Monday.
For the rest of the week comdoll traders will most likely focus on the results of the ECB’s LTRO, developments on Greece’s bailout, and even rising oil prices. Oh, and don’t forget! Australia is set to release its building approvals and quarterly private capital expenditure report tomorrow, while Canada will be publishing its GDP numbers on Friday.
Oh, and before you dash off to hunt for a new trade setup, I’d just like to announce that BabyPips.com got three nominations in FXStreet.com’s Forex Awards for 2012. Whoo!
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Good luck in your trades this week!
Comdoll Event Highlights for February 27-March 2, 2012
It seems that this week would be off to a slow start for the comdolls in terms of economic data, but the action should pick up towards the middle of the week as Australia and New Zealand are set to release a bunch of top-tier reports.
PMI reports from China should also usher in extra volatility on Thursday while the Canadian monthly GDP report due Friday could spice things up for my short USD/CAD trade.
Now let’s take a look at the weekly levels for the comdolls:
Significant Levels to Watch Out For
|Week Open (WO)|
|Previous Week High (PWH)|
|Previous Week Low (PWL)|
|Top Weekly ATR (tWATR)|
|Bottom Weekly ATR (bWATR)|
|Other significant levels|
Alright, that’s it for me today! If you want to ask or share anything, just tell me, okay? Thanks for giving your feedback!
Happy trading to you all!
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