EURUSD

Technical Analysis – EURUSD challenges descending trend line; bulls may take control

Posted on January 7, 2019 at 6:57 am GMT

EURUSD is challenging the long-term descending trend line, creating positive movement in the narrow range. The price has been developing within a consolidation area over the last three months with the 1.1480 resistance level as the upper boundary and the 1.1265 support barrier as the lower boundary. If the price jumps above the diagonal line, it would change the outlook to a more neutral one. Momentum indicators in the short-term though are currently supporting that neutral momentum. Specifically, the RSI indicator is pointing somewhat upwards near 50, while [..]

Week Ahead – Factory data to remain in focus; BoC to start off 2019 central bank meetings

Posted on January 4, 2019 at 2:28 pm GMT

Industrial production out of Germany, the UK and France will dominate the economic calendar next week, keeping investors’ attention firmly on the growth outlook for 2019. The Bank of Canada will be the first of the major central banks to hold a policy meeting this year, while the highlight in the US will be the ISM non-manufacturing PMI and speeches from Fed policymakers. However, with market moves being mostly driven by jitters about the growth outlook at the moment, economic [..]

Eurozone inflation not going anywhere; could upset ECB plans – Forex News Preview

Posted on January 3, 2019 at 4:00 pm GMT

Eurostat will publish its preliminary estimates of Eurozone inflation for December on Friday at 10:00 GMT. The figures are expected to confirm that the European Central Bank made little progress in lifting underling inflation during 2018, putting into question its plans to begin raising interest rates in the final quarter of 2019. The harmonised consumer price index (CPI) for the euro area is expected to have risen by an annual rate of 1.8% in December. Although this is marginally below [..]

European Open Preview – Yen spike triggers ‘flash crash’ as growth fears intensify

Posted on January 3, 2019 at 9:06 am GMT

Yen soars after Apple profit warning sends jitters across FX markets Aussie plunges to multi-year lows versus the dollar and yen Oil back down after sharp gains the previous day Volatility sweeps financial markets Currency markets had a volatile start to the new year as risk sentiment took another turn for the worse in the first two days of trading of 2019. The Japanese yen soared across the board as investors fled to safety on heightened concerns about the global [..]

European Open Preview – New year kicks off with low risk appetite

Posted on January 2, 2019 at 9:23 am GMT

Chinese factory activity contracts, feeding growth slowdown fears Yen rallies to seven-month highs, aussie drops to three-year lows Oil extends downtrend into 2019 Stocks have a rough start as Chinese data disappoint Stock markets in Asia started in the red in the first trading day of the year as lower than expected factory data out of the world’s second largest economy added further evidence of a potential slowdown in global growth. The Chinese Caixin manufacturing index crossed unexpectedly below 50 in December for the first [..]

Technical Analysis – EURUSD fails to jump above 1.1500 and downtrend line; neutral in short term

Posted on December 31, 2018 at 7:43 am GMT

EURUSD has declined after touching the 1.1470 resistance level once again, which overlaps with the falling trend line in the daily timeframe. In the short-term, the pair seems to be in neutral mode over the last one-and-a-half months. Momentum indicators in the short-term though are currently supporting that neutral momentum. Specifically, the RSI indicator is pointing downwards above 50, while the MACD oscillator continues to stand slightly above the trigger and zero lines, weakening its movement, signaling slightly bullish mode. Should the pair experience negative pressure, it could [..]

Week ahead – US employment report to kick off the New Year

Posted on December 28, 2018 at 1:20 pm GMT

After a particularly turbulent week that lacked fresh catalysts but not wild price swings, traders will now turn their sights back to more familiar themes, such as economic data releases, and most notably the US jobs report for December. That doesn’t mean everything is back to normal though, as liquidity will likely remain thin, which implies that any piece of news could have a disproportionally large market impact. Further deterioration in China’s manufacturing PMI expected The week will commence with [..]

European Open Preview – Dollar sags but equities stage comeback

Posted on December 28, 2018 at 9:07 am GMT

US equities stage a major comeback late in the session, close higher Dollar edges lower as Fed rate-hike expectations are almost fully priced out Yen shines, loonie and aussie flirt with lows amid broader risk-off mood US stocks stage an impressive late comeback, but skepticism lingers It was another session characterized by sharp moves in both the currency and equity markets on Thursday amid thinner-than-usual liquidity, and with little in the way of fresh news to drive the price action. [..]

FX year ahead 2019: End of dollar dominance?

Posted on December 24, 2018 at 12:22 pm GMT

As 2018 draws to a close, the heavily sold currencies are set to end the year off their lows, while the US dollar – one of the biggest winners of 2018 – appears on track to start 2019 on a negative footing. While it’s too early to predict a new downtrend for the dollar, expectations that US interest rates are nearing their cycle peak could provide the greenback’s peers some much-needed relief. Yet, several risks remain – ranging from the [..]

European Open Preview – Stock carnage deepens; yen extends gains

Posted on December 24, 2018 at 8:58 am GMT

US stock indices extend losses, Nasdaq enters bear market as concerns around future growth feed risk aversion Dollar and yen outperform on safe-haven demand, but are giving back some gains on Monday amid encouraging trade headlines Equities drop to fresh lows as uncertainty reigns US stock indices closed with sharp losses once again on Friday, in an environment characterized by thin liquidity, as investors attempted to protect their profitability heading into the New Year via liquidating more of their prior [..]

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