Morning View: Amazon Spikes and Euro Growth

Amazon Spikes:
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:

Stocks huh!

Euro Growth:
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.

Friday:
EUR Eurogroup Meetings
EUR German Ifo Business Climate
USD Core Durable Goods Orders
CAD BOC Gov Poloz Speaks

Chart of the Day:
EUR/USD Daily:

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.