Philip Chua Business Blog

Posts Tagged ‘correction’

Last week we suggested that EUR/USD might base out in the 1.2150/2200 area and then begin a correction higher and that Elliott Wave projection proved spot on. Market short-covering, spurred on by rumors of intervention (actual in the case of the SNB in EUR/CHF), sparked the move higher, but there's more to it than that. Despite the cacophony of doomsayers predicting the demise of the EUR and an end to the global recovery, markets actually got what they have been demanding for the last several weeks: passage of the peripheral-EU rescue package by Germany and others and a commitment to defend the EUR. A sovereign debt default by Greece, Portugal, or Spain has effectively been forestalled for the next several years, buying those nations time to get their fiscal houses in order.

This past week has all the hallmarks of a market set to stall and undergo a correction lower for a few weeks at least. Before outlining those hallmarks, it's worth mentioning the main source of hesitation with this view, namely the proximate catalyst to Friday's sell-off: the US bank being...

Technical analysis shows us the Euro may continue its uptrend but we may have a correction first. Indicators are in a bullish direction like MACD, which crosses the signal line upwards. RSI is in an uptrend. Bollinger gives us a bullish signal by closing the candle above the higher band.

INVESTORS should use the recent correction to buy into markets, say strategists of two private banks. But banish the thought of a buy and hold approach, as volatility may well erase gains made during the year.
Says Credit Suisse Private Bank’s chief investment officer Stefan Keitel: ‘Buy on weakness, sell on strength. There will be two to three corrections in 2010 but also opportunities.
‘We think… more

The U.K. currency might start to rebound after a strong bearish movement based on technical analysis. Indicators gives us a bullish signal for a correction reason like RSI, which bounces on 30% line upwards, MACD crosses the signal upwards on hourly chart, and Bollinger gives us a bullish signal by…

The USD has seen its correction extend further this past week, but critical resistance levels (EUR/USD support levels) we highlighted in last week’s issue appear to be exerting some influence. The 1.4250 level has held as support on a daily closing basis thus far, and the more significant 1.4170/90 area…