Forex today picking up heights on ECB and EU announcement

Today the sun has risen from opposite direction, its not funny, really this is because of the surprise shot of EU and ECB and their plans that have rushed the forex online market with the crowd of traders due to observing extremely higher moved up trends in EUR and the Asian market also surged up with flying colors.

Market trends signaling green to show that trends are moving higher and traders will surely redeem their investment that is time to sell off. EU policy makers sudden turned up attitude swerved up market of EUR in this morning.

The breeze of positive reaction blows all across the global Forex market and this is alluring to have some settle down of trades at EUR protecting the short-term trend. Although trends are moving in positive direction but it will take some more time to recuperate integrity at the forex trading platform.

In order to deal with the loosing consumer confidence and increasing crisis over the market at the weekend Fed, EU authorities and ECB combined took a strong decision that shook the entire currency pair market and forex session opening came up over with great precision at the pairs.
All this due to announcement of 750bln funding package allotment by EU and ECB promise to buy the government bonds at the market relieved the tensed market sentiments within a shot span of time.

Standard and Poor Index futures gathered at 4.1 percent while EUR cherished with 2.3 percent to share the incline of $1.3046. The victory of South Korea further drove the currency by 2% in front of USD whereas the protection cost of Asian bonds fell down once again while crude oil prices inclined higher at 3.8%.

This attempt of EU zone and approval of such a lump-sum aid package to soothe out the mushrooming debt crisis of sovereign that have sprouted in Greece but is threatening the other part of the forex market and their attempt put an end to the spreading of debts to other financial market.

US equities didn’t showed any positive response over this news and threw again for the fourth consecutive forex session on Friday. There is no exaggeration in saying that EU attempt of stabilizing the situation of market troubles and ceasing the crisis from spreading is appreciable.

The currency pair of EUR/USD is the only pair that have displayed some rise after intra-day trading session up to 1.2968 signifying miniature consolidation would likely to be observed along with the signs of recoil to the level of 1.2900. However, with the improvement in the buying and selling off the interests should come up, stay at the minor support level of 1.2809, and probably hold that position and stay at the minor support level of 1.2809 with the possibilities of additional rise.

The resistance would likely to expand from the last week’s trade lows level of 1.2510 to move towards the stronger recoiled level of current turn down towards 1.3000 but the trade didn’t achieved and finally stayed with 1.3038. According to the Fibonacci analysis, it is observed that the trade trends retraced from the level of 1.3365 to 1.2510 that would continue to hold from this level of trading.

The currency pair of GBP/USD is having short-term entry from the trade level of 92.50 and the target trade level at 90.80 and ceasing point of the trade is at 93.15.

Whereas USD managed to maintain the firm hold at the forex trading platform due to JPY’s winding down with upward trending risk is likely to test the resisting trends at 93.27/28. Nevertheless, there is a need to have a break in the trend that would signal the decline in the trading of the currency from the level 94.99 of the peak ended up at 87.95 in last week then again regained some pace in trading at 93.90 but changes would speed up or not this couldn’t be said now.

Overall, next forex session would undergo through vital trading session and there would be no precision in the trade of the market that could be affirmed for sometime lets see where the reaction of consumers and traders would probably rest that can be signaled from the lows and highs of market.