A fun one to start your Friday Asian session (…well if you didn’t buy the high and sell the low within a single morning’s trading), with a crazy spike in the Amazon stock price. Amazon again reported a loss amid rapidly rising sales numbers.
The market was obviously confused as to whether the headline number or the future prospects was the important factor, and there were sure to be a few daytraders who either profited a LOT of money as well as a few who would have been equally CRUNCHED by the move.
The Stocktwits account covered the swings well here:
— StockTwits (@StockTwits) April 23, 2015
In an already unsettled Eurozone thanks to the complete failure to even progress toward a solution to the Greek debt crisis, they weren’t helped last night by a raft of PMI misses across the board.
I said in yesterday’s Morning View that it’s sometimes a punt as to which one of these PMI figures, if any at all, will actually move the market. But you would think that a clean sweep of misses across the board would put the Euro under pressure, however it seems optimism trumped reality.
A dangerous premise, but something that markets are built on.
On the European open, EUR/USD printed a nice little pin bar on short term trend line support that price kicked up off throughout the evening. Was a nice trade if you were on your toes and happy to fade the news.
I take a wider look at the EUR/USD technicals in the Chart of the Day section below.
On the Calendar Today:
Quiet on the Asian Calendar but another round of Eurogroup meetings tonight should throw up a few headlines throughout the evening.
We also have the US Core Durable Goods Orders once we hit the New York session. This is the change in the total value of new purchase orders placed with manufacturers and is seen as a leading indicator to production numbers.
EUR Eurogroup Meetings
EUR German Ifo Business Climate
USD Core Durable Goods Orders
CAD BOC Gov Poloz Speaks
Chart of the Day:
Click on chart to see a larger view.
Taking a look at the EUR/USD daily chart, we can see that price is trying to form a bottom and now pushing through descending channel resistance. Price printed a lower high but has not given any sort of conformation that this is anything other than a consolidation at lows.
That 1.10 to 1.11 resistance zone is capping price pretty hard still and as long as we are still below that, I wouldn’t be paying too much attention to this channel break.
Take a look and let us know what you think of the Euro? Leave a comment below or mention @VantageFX on Twitter.
Risk Disclosure: In addition to the website disclaimer below, the material on this page prepared by Vantage FX Pty Ltd, does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. The Forex research contained in this report should not be construed as a solicitation to trade. All opinions, news, research, analyses, prices or other information is provided as general market commentary and marketing communication – not as investment advice. Consequently any person acting on it does so entirely at their own risk. The experts writers express their personal opinions and will not assume any responsibility whatsoever for the actions of the reader. We always aim for maximum accuracy and timeliness and Vantage FX shall not be liable for any loss or damage, consequential or otherwise, which may arise from the use or reliance on the service and its content, inaccurate information or typos. No representation is being made that any results discussed within the report will be achieved, and past performance is not indicative of future performance.