{"id":15090,"date":"2010-11-08T08:26:23","date_gmt":"2010-11-08T13:26:23","guid":{"rendered":"http:\/\/countingpips.com\/fx\/?p=15090"},"modified":"2010-11-08T08:26:23","modified_gmt":"2010-11-08T13:26:23","slug":"european-fiscal-worries-return-usdcad-short-opportunity","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/fx\/2010\/11\/08\/european-fiscal-worries-return-usdcad-short-opportunity\/","title":{"rendered":"European Fiscal Worries Return, USD\/CAD Short Opportunity"},"content":{"rendered":"<p><strong>By Russell Glaser <\/strong>&#8211; The dollar was stronger at lunchtime during the European trading  session as the euro stumbled following renewed concerns over Greece and  Ireland\u2019s fiscal troubles. Canadian housing data is due out this  afternoon and the USD\/CAD shows a setup to short the pair.<\/p>\n<p>Following a better than expected US  Non-Farm Payrolls report last week, the dollar continues to strengthen.  Japanese traders bought the dollar from the opening bell and the buying  continued into the European trading session.<\/p>\n<p>Signs of fiscal difficulty are reemerging in Europe and have driven  the euro lower today.  Rising costs to insure the debt of Ireland have  sparked worries that Ireland may be the next nation to activate the  European mechanism for nations that cannot meet their bond payments.<\/p>\n<p>The drop in the dollar comes despite a bright spot in Greece as  voters there reaffirmed their support for the socialist ruling party and  at the same time affirmed their support for the government\u2019s strict  austerity measures. This should end the possibility of new elections in  Greece and allow for the implementation of the tough austerity measures  that Greece will undertake to shed its budget deficit.<\/p>\n<p>At lunchtime in the European session the EUR\/USD is trading lower  near the 1.39 level, after opening the day at 1.4031. The USD\/CHF is up  at 0.9680, following an opening day price of 0.9610. The EUR\/CHF is  trading at 1.3450, down from its opening price of 1.3485.<\/p>\n<p>The economic calendar is sparse for the US trading session with only  Canadian housing starts set to be released.  The USD\/CAD is trading up  at 1.0035, but better than expected data from Canada may reverse the  price appreciation from today and send the pair lower in line with the  long term trend.  An opportunity to enter short on the pair may present  itself as the pair has risen but failed to break the minor trend line  that begins at the end of October. Traders may want to target the mid  October low of 0.9980 while placing a protective stop above the trend  line should the pair continue to appreciate today.<\/p>\n<p><em><strong>Forex <\/strong><strong>Market Analysis provided by <span style=\"text-decoration: underline;\"><a href=\"http:\/\/www.forexyard.com\/?zone_id=1398\" target=\"_blank\">ForexYard.<\/a><\/span><\/strong><\/em><\/p>\n<p>\u00a9 2006 by FxYard Ltd<\/p>\n<p>Disclaimer: Trading Foreign Exchange carries a high level of risk and                                                                                                                                      may     not       be                   suitable         for         all                               investors.                  There          is    a                                                       possibility                    that                            you               could                         sustain  a        loss              of     all             of              your                                               investment       and                                       therefore      you                                should         not                       invest                         money         that           you                                 cannot                    afford  to                            lose.      You                              should           be                aware            of                    all              the            risks                                       associated               with                   Foreign                           Exchange                               trading.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The dollar was stronger at lunchtime during the European trading session as the euro stumbled following renewed concerns over Greece and Ireland\u2019s fiscal troubles. Canadian housing data is due out this afternoon and the USD\/CAD shows a setup to short the pair.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-15090","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15090","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/comments?post=15090"}],"version-history":[{"count":0,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/posts\/15090\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/media?parent=15090"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/categories?post=15090"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/fx\/wp-json\/wp\/v2\/tags?post=15090"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}