The financial crisis in Europe is leading the global slowdown putting renewed pressure on the sovereigns around the world, many of them facing high debt-to-GDP ratio. Searching for a way to stimulate their economies many are running their mints at full capacity. But, every currency cannot depreciate against every other currency. This is throwing up…
On April 10th S&P500 made a low of 1357.38 and then tested it again on April 23rd by making a low of 1358.79. Later in early May, the index broke this support level. After making a low of 1266.74 on June 4th, the index bounced back and by Tuesday, June 19th, it was trying to…
The bad news coming out of Europe is keeping euro from recovering part of its sustained decline against the greenback. The pair has been in oversold territory for quite some time. The 9-day RSI is still showing divergence but the pair is reacting more to Spain worries than to any chart pattern. This week, EUR/USD bounced up…
Past few weeks have been quite brutal for the single currency of the eurozone against the greenback. By Memorial Day, EUR/USD had declined everyday in May except for two. Now it seems that the pair may be setting up for a bounce. Since mid-February, EUR/USD has been forming a descending triangle. The lower boundary line…
Despite an economy that is sinking deeper in recession, British Pound has done quite well against the euro. One of the causes is the uncertainty about eurozone due to the Greek crisis. As Greece grapples with her debt and insolvency issues, the number of alternatives available to her is decreasing. One alternative is that she…
Small cap Russell 200 Index ($RUT) is very precariously positioned. At the moment it is flirting with the neck line break of a potential Head & Shoulder pattern. The left shoulder of the pattern was formed at 833.02 in early Feb and then in mid-Feb – making a double left shoulder. The head of the…
In recent times, one of the flight-to-safety trade in currency markets has been USD/JPY. When the market uncertainty goes up, JPY goes up against USD. USD made an all time low of 75.57 on October 31, 2011. It again came down to within 50 PIPs of this low in early Feb ’12 before rising up to 84.178…
For most of 2011, Microsoft (MSFT) oscillated within a horizontal channel with a lower bound in 23-24 range and upper bound in 27-28 range. There was false breakout in early 2011, but it did not last long and price fell back into the channel. Mr. Softy finally made a move to break out of this…
After making an all time low of 71.05 in April ’08, Dollar Index bounced back up to 89.25 by November ’08, retracing between 78.6% – to -89% of the drop from the previous high of 92.53 reached in November ’05, arguably, driven by the fear trade in the aftermath of ’08 financial crisis. For the…
It’s about time too. Infosys (INFY) is one of the bellwether IT companies of India. It is seeking European acquisitions to lift its value. Infosys, whose $4 billion cash pile is the biggest among India’s computer-services providers, said last month it’s looking for a European deal after its annual sales forecast trailed analysts’ estimates. ……
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