EUR and GBP Crushed by ECB and BoE

While most Americans are off enjoying their July 4th holiday, big moves are happening in the FX market. The euro and British pound dropped to 5 week lows against the U.S. dollar, taking out key levels in the process. The absence of U.S. traders most likely compounded the volatility in currencies. The European Central Bank and the Bank of England left monetary policy unchanged but Mario Draghi and Mark Carney made it clear that both central banks have a bias to ease. The dovish comments from European central bankers were motivated by the recent volatility in interest rates and a desire to set themselves apart from the Federal Reserve who is on a path to reduce stimulus. The ECB and the BoE wants everyone to know that they are still prepared to increase stimulus if the volatility in the bond markets persist or their economies weaken.


In the Eurozone in particular, the EUR/USD dropped through 1.30 and 1.29. The currency started to fall as soon as Draghi said that policy will remains accommodative as long as needed, there are downside risks to their economic outlook and rates will stay low for an extended period of time. The sell-off gained momentum when the central bank took the unprecedented step of forward guidance. The ECB said there is no exit in sight, they are keeping rates low for an extended period of time, their decision will be data dependent and they are keeping an open mind on negative deposit rates. Draghi also reminded everyone that the central bank is "technically ready" for negative rates. They had an extensive discussion about the possibility of a rate cut and unanimously decided that the guidance was needed which included saying that 50bp is not the lower bound. The central bank is screaming their bias to ease from the top of the mountain - they don't want to leave any room for ambiguity because the risk could be a further rise in yields. Having dropped below 1.29, the next support for the EUR/USD should be at 1.28.

EUR and GBP Crushed by ECB and BoE

EURUSD DAILY 29TH MAY 2013

EURUSD has formed head and shoulder pattern  with neckline 

i feel  as per Elliot wave, Pair has finished corrective wave ABC and developed new impulsive 

pair has support @1.2740 & 1.27  which is remained historic strong level and also neckline in this pattern

if pair breaks this neckline then it may test 1.204 , last year low 

Dear friends i know this level will not achieve in one single wave 

EURUSD 27th May 2013

EurUsd  has formed head and shoulder pattern above moving average 50- period

it has neckline as well as support @1.29 

Pair has strong resistance 1.2980 where Fibonacci retracement 23.6 %

if pair breaks below neckline then pair will move to the 1.2820 level 

EURUSD has bearish emgulfing pattern

EURUSD has formed bearish emgulfing pattern above 50 SMA 

Pair is rejecting from level 50% fibbonacci retracement

resistance @1.3140 & 1.3208  support @1.2980  &1.29 1.2840

if Pair breaks 1.30  then pair may test next given support

   

EURUSD HAS PIN BAR SETUP

EURUSD has formed pin bar setup in daily charts 
pair has showing rejection from level 1.3200 50% retracement ( as shown in charts)

resitance @1.3200 and support@ 1.3120 & 1.3050

AUDUSD HAS EVENING STAR

AUDUSD HAS FORMED EVENING STAR   DAILY CHARTS 

PAIR IS BELOW 50 PERIOD MOVING AVERAGE  PAIR IS VOLATILE MOVING   

IT HAS ALREADY BROKEN CONFIRMATION LEVEL 

 On downside   pair is targeting towards 1.01 & 1.0050

EURUSD HAS FORMED HEAD AND SHOULDER PATTERN

EURUSD  has formed Heads and shoulder pattern with neckline @1.300
Pair is currently consolidated above 50 Period moving average @1.2995

Also pair is showing retraced from level 50%

Downside
if Pair breaks below 1.30( neckline) then Pair may test next support @1.29 &1.2840

Upside
if Pair  breaks above 1.3130 then it may find resistance @1.3220 & 1.3350

Recommend

Sell below 1.3  target @1.2850 &1.2740 

EURUSD 20130320

EURUSD has formed bearish emgulfing pattern below falling trendline
RSI is below 40 recently Pair has broken support @1.2880
Pair may support @1.2840, 1.2820 & 1.2740
Resistance @1.2942, 1.2970

If Pair breaks below support @1.2840 then it may show weakness 

Recommendation: 
EURUSD  SELL @1.2840 STOP @1.3 TARGET @1.2740 &1.2644

EURUSD IS IN TRIANGLE PATTERN

EURUSD has formed triangle pattern

investor are waiting for ECB meeting which is on tomorrow 

if Pair breaks upside line of triangle then pair may test resistance @1.3585 ,1.36  & 1.3710

&  if pair manage to break higher low of this triangle then pair has next support @1.3460 & 1.3411 

AUDUSD HAS DOUBLE TOP PATTERN

AUDUSD has formed double top pattern ( A & B are two tops)

and pair has developed bearish emgulfing pattern below 50SMA 

So pair has entered in negative zone 

if pair breaks neckline @1.034 then it will be targeting towards 1.0140 & 1.01

Recommendation

AUDUSD Sell @ 1.0360 Stop loss @ 1.0460   Target @1.0140 & 1.010

Please trade with proper risk management plan with hedging 

Reuters.com - Obama proposes short-term budget fix, Republicans swiftly object

nidhi mistry (nidhimistry1@gmail.com) has sent you this article. Personal Message: Obama proposes short-term budget fix, Republicans swiftly object Tue Feb 05 23:05:26 UTC 2013 By Jeff Mason and Mark Felsenthal WASHINGTON (Reuters) - President Barack Obama on Tuesday urged Congress to pass a small package of spending cuts and tax reforms to delay larger, automatic cuts from going into effect and damaging the economy on March 1. Republican leaders quickly rebuffed his proposals, rejecting what they saw as a bid for new tax increases after lawmakers agreed to raise rates for top U.S. earners earlier this year. If launched as scheduled, the cuts - dubbed the "sequester" - would reduce federal spending across the board by about $85 billion for one year, split evenly between military and domestic programs. The total of reductions through 2022 would amount to roughly $1.2 trillion. Obama said he still believed a broad, balanced plan to achieve $4 trillion in deficit reduction was possible, and he said his proposals to do so during "fiscal cliff" talks with Republican Speaker of the House John Boehner last year were still on the table. With only a few weeks before the spending cuts go into force, however, Obama urged lawmakers to agree to a small package now that would avert economic damage and give them more time to negotiate a broader deal. "So if Congress can't act immediately on a bigger package ... then I believe that they should at least pass a smaller package of spending cuts and tax reforms that would delay the economically damaging effects of the sequester for a few more months until Congress finds a way to replace these cuts with a smarter solution," Obama told reporters. "Congress is already working towards a budget that would permanently replace the sequester. At the very least, we should give them the chance to come up with this budget, instead of making indiscriminate cuts now that will cost us jobs and significantly slow down our recovery," he said. The budget deficit for fiscal 2013 will dip to $845 billion after four straight years of $1 trillion-plus deficits, the Congressional Budget Office said on Tuesday, largely because of the higher taxes being paid by wealthy Americans. The analysis assumes that the $85 billion in spending cuts that Obama wants to avoid will go into effect on March 1. Reactions from Republicans suggested that was likely. "Sorry, President Obama, but no more tax increases for even more government spending," said Republican Senator Pat Toomey in a statement. "We should keep our word to the American people and keep the spending cuts you signed into law." Senate Republican Leader Mitch McConnell, who helped secure the deal that avoided the "fiscal cliff," said Obama needed to lay out specific spending cut ideas and abandon his tax push. "The American people will not support more tax hikes in place of the meaningful spending reductions both parties already agreed to and the president signed into law," McConnell said in a statement. "Now that Congress has acted on the tax issue, the president needs to lay out significant spending reforms — the other side of the 'balance' as he defines it," he said. ECONOMIC PAIN Obama has been reaching out to business leaders to support his domestic policy agenda, meeting with a group at the White House on Tuesday. But a large group of chief executives rejected his proposal. "Hiking taxes and forgoing improvements in our nation's long-term competitiveness in favor of short-term budget choices would move us in the wrong direction," said John Engler, president of the Business Roundtable, which represents chief executives in Washington. Engler said tax changes should be made in the context of broad reform. The group would prefer a more thoughtful allocation of spending cuts than sequestration, he said. The White House and Congress agreed on a deal at the beginning of this year that avoided the "fiscal cliff" of spending cuts and tax increases by raising tax rates on households making more than $450,000 a year. During these negotiations, Obama offered a means to reach $4 trillion in deficit reductions. The deal put off the huge spending cuts for just two months. The Republican-controlled House last year passed two measures that sought to replace the sequester cuts and shield military spending by shifting the burden onto domestic programs, including many that serve the poor, such as Medicaid, food stamps and social services block grants that fund programs like Meals on Wheels. The measure was never taken up in the Democratic-controlled Senate. Obama's statement is the latest in a series of moves to outline his policy agenda before his State of the Union address on February 12. The president has recently made trips outside of Washington to promote proposals to reform immigration and reduce gun violence. Obama's push for a short-term deal to avoid the sequester comes after a sharp drop in defense spending helped cause U.S. economic output to shrink at the end of last year. The White House has attacked Republican leaders for threatening to use the sequestration deadline as a bargaining chip to obtain cuts to government retiree and healthcare programs. The U.S. economy contracted by 0.1 percent in the last three months of 2012 on the deepest plunge in defense spending in 40 years. Outgoing Defense Secretary Leon Panetta said on Sunday the cuts would be deeply harmful and make it more difficult to respond to crises in the world. His designated successor, Chuck Hagel, has made similar warnings. (Additional reporting by Steve Holland, Roberta Rampton and David Lawder; Editing by Philip Barbara and Jim Loney) This service is not intended to encourage spam. The details provided by your colleague have been used for the sole purpose of facilitating this email communication and have not been retained by Thomson Reuters. Your personal details have not been added to any database or mailing list. If you would like to receive news articles delivered to your email address, please subscribe at www.reuters.com/newsmails © Copyright Thomson Reuters 2013 All rights reserved. Users may download and print extracts of content from this website for their own personal and non-commercial use only. Republication or redistribution of Thomson Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters and its logo are registered trademarks or trademarks of the Thomson Reuters group of companies around the world. Quotes and other data are provided for your personal information only, and are not intended for trading purposes. Thomson Reuters and its data providers shall not be liable for any errors or delays in the quotes or other data, or for any actions taken in reliance thereon.

GBPUSD has formed Double top pattern

GBPUSD has formed Double Top Pattern with neckline @1.5824

if pair breaks neckline @1.5824  then Pair may targeting towards 400pips

pair has Strong Support @1.5775

EURUSD has formed Double Top Pattern

EURUSD has formed Double Top Pattern with neckline @1.3260

Pair has Support @1.3250 and Resistance @1.3340 Strong 1.3402 

Downwards
if Pair Breaks level @1.3250 then pair may test support near 1.310 & 1.30

Upwards

if Pair breaks Jan 14, 2013's high @1.3402 then it has Strong resistance @1.3485  which is 50% retracement of rally 2011-2012

Daily Chart 

Pair has formed regular bearish divergence with RSI 14(RELATIVE STRENGTH INDEX)

EURUSD has strong resistance @1.33

EURUSD has formed Pin Bar Setup in daily chart
It has Strong resistance @1.33 pair has broken level 1.3150 targeting towards 1.3 & 1.2950