Fx Addicts Weekly Analysis

Week In Review - Sunday July 17, 2011 until Saturday July 23, 2011

And

A look Forward - Sunday July 24, 2011 until Saturday July 30, 2011

Volume 1 July 2011

Under The Cover:

- Europe Fixes Debt Issues - Euro Rallies

- Second Quarter US & UK GDP This Week

- Potentially Great Selling Opportunities inUSD/CHF & EUR/JPY

Hedge Yourself Against Today’s Market UnknownsSwap Ignorance For Education

Fundamentals

hursday’s European debt resolutions were positive for the Euro. Euro Zone leaders pledged 109 billionand private investors pledged 50 billion for a total of 159 billion in additional funds to bail out Greece

ize banks and also to buy government bonds in secondary markets. With the addition of 159 billion to the

country and the Union as a whole. All the money to stabilize the debts ofa few nations has to come from the many. In

In the U.S. the debate continues to raise the debt ceiling. If the ceiling is not raised it will most cer-

stop. It would most certainly hurt China (holds $1.4 trillion in U.S. Debt) and Japan (holds just under $1.0trillion in U.S. debt) both of which have their own economic issues to deal with; Japan more so than China.

2011 and both certainly are low in historical terms. U.K. GDP will be released on Tuesday and the U.S. on Friday.

Fx Addicts Weekly Analysis

Daily EUR/USD

Monthly EUR/USD

Technical Analysis for the Week

EUR/USD

On a daily chart the Euro looks to beslightly over bought; see the circle on the

and the %D is signaling a turnaround or

day’s large surge put price action rightback into the consolidation triangle wehad been in since late April. Friday’s sell

strong up days and 350 pips, is disap-pointing. It is as if there was not a lot

higher one more day, Friday, to at least1.4550. Monday’s session will needto close somewhere above 1.4550 toprove further continued advancementsagainst the Dollar. If not, the Euro will

Looking at the EUR/USD monthlychart you can see we are above the mi-nor trend line drawn from the highsback in 2008. While nothing includ-ing trend lines are absolute we can con-clude from a combination of indicatorsthat a market will go in a certain direc-tion. In this case we can say that themarket is above the trend line and that

the Euro will gain against the Dollar inthe coming months. Or, we can take analternative view and say that this is nowthe second time the market has been at

month and a lot can happen in that week.

Overall looking at all charts and fundamentals we can predict that the beginning of this week, Monday and

gress has not agreed to raise the debt limit, and if the President has not invoked the 14th amendment and raised


USD/CHF

Daily, weekly and monthly charts of theDollar Swissy show the long term weaknessof the Dollar or the long term strength of theSwiss Franc; however one chooses to look at the

Swiss Franc since 2001; ten years. Technically,there is no indication that this will change. Anyrallies should be met with selling. Earlier lastweek there was a good technical bottom on thedaily chart, it has since faded and now looksas though those lows will be exceeded later

and monthly charts are pathetically low with

Clearly a very oversold market. Look to sellany rallies that last 2 days and/or 250 pips or

good market to trade short for the last 10 years.


EUR/JPY

the Euro both in the short term as well as the

in three months against the Yen in 2008 theYen has resisted any rallies by the Euro. Last

debt restructuring it did not enjoy the samestrength against the Yen as it did against the

rallies by the Euro against the Yen have beenoutstanding selling opportunities, both short

by the Euro should really be treated the same.Technically, if the Euro were to rally in Mon-day’s or Tuesday’s session up to the resistancelevel around 113.50 it would be an even bet-ter selling opportunity. Stops could be eventighter placed just above 114.05 with a 50 pip


Fx Addicts Weekly Analysis

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