News / Page 101

Technical Analysis – GBPUSD tests 1.45 area after correcting recent uptrend

Posted on May 5, 2016 at 6:45 am GMT

After a steady rise from the key 1.4000 level, GBPUSD reached the 200-day moving average this week but was unable to close above it. This proved to be a strong resistance area and consequently the pair reversed back down. The level at 1.4670 has also proven to be a strong resistance level, which after several tests at this level, prices failed to close above it and fell back down to now test the 1.45 area, an important support level. In [..]

European Session – Dollar boosted by strong US data but euro and pound sag

Posted on May 4, 2016 at 3:07 pm GMT

Markets continued to be short on risk appetite on Wednesday as commodity currencies remained under pressure even as the dollar retreated from earlier gains. Major European indices were in the red again as traders turned gloomy on the outlook for global growth. The negative sentiment was heightened further by disappointing European PMI numbers out earlier today. The final reading of the Eurozone services PMI was revised lower from 53.2 to 53.1 in April, while the composite PMI was left unchanged [..]

Crunch points could be near for euro / dollar, dollar / yen

Posted on May 4, 2016 at 1:45 pm GMT

One very interesting question in the minds of many market participants is what will happen to the US dollar and whether its rally since May / June of 2014 has now finally come to an end. Technically speaking, the prospects of its major rivals such as the yen and the euro, are looking much better for the moment. The dollar is looking bearish in both euro / dollar and dollar / yen as the 200-day moving average and the Ichimoku [..]

New Zealand dollar extends slide on weak dairy prices and mixed jobs data

Posted on May 4, 2016 at 11:35 am GMT

Global dairy prices failed to sustain the increase of the last two dairy auctions and fell 1.4% in yesterday’s auction, dealing a blow to signs of a recovery for the commodity, which has fallen by nearly 60% since early 2014. However, there was some good news for New Zealand exporters as the price of whole milk, the country’s main export, rose by 0.7% in Tuesday’s auction. This gave little respite to the New Zealand dollar, which is down sharply for [..]

Asian Session – US dollar rebounds versus yen in volatile trading

Posted on May 4, 2016 at 7:40 am GMT

The US dollar managed to claw back some ground versus the Japanese yen during Wednesday’s trading, climbing to the 107.45 level before dropping back below 107. Thin liquidity due to a Japanese national holiday as well as heavy speculative positioning in favor of the yen that made it vulnerable to a reversal, might have exacerbated the sharp moves. The moves occurred in the absence of any fundamental announcements or other news. The US dollar also managed to preserve its previous [..]

Technical Analysis – USDCAD remains bearish in descending channel

Posted on May 4, 2016 at 7:27 am GMT

USDCAD saw its sharpest one-day rally in nine months on Tuesday as it managed to climb back above the 1.27 handle for the first time in a week. The pair has been stuck in a descending channel since January and touched fresh 10-month lows just before the rally. The positive momentum from yesterday’s upswing is still in place on Wednesday and looking at the stochastic oscillator chart, there is scope for further gains as the %K and %D lines are [..]

European Session – Sterling falls after poor PMI; dollars firms on Lockhart comments

Posted on May 3, 2016 at 2:41 pm GMT

The US dollar pared back its losses in Tuesday’s European trading after the Fed’s Lockhart reignited expectations that the Fed could still be on course for two rate hikes this year. The greenback rebounded from fresh 18-month lows of 105.54 against the Japanese yen earlier today to test the 106 level in the European session. Speaking in Florida, Atlanta Fed President Dennis Lockhart told reporters that two rate hikes are “certainly possible” in 2016 and that the FOMC kept the [..]

RBA unexpectedly cuts rates for first time in a year; aussie plunges

Posted on May 3, 2016 at 11:28 am GMT

The Reserve Bank of Australia took markets by surprise on Tuesday by cutting its benchmark rate by 25bps, citing weakening inflationary pressures as the main reason for the move. The central bank lowered its cash rate for the first time in 12 months from 2.00% to a new historic low of 1.75%. Although many analysts had expected for the RBA to resume soon with its rate cutting cycle, following much weaker-than-expected quarterly inflation figures out last week, the consensus was [..]

Asian Session – Aussie drops after RBA rate cut; US dollar under pressure

Posted on May 3, 2016 at 8:02 am GMT

The Reserve Bank of Australia surprised markets with a rate cut while the US dollar continued to drop to multi-month lows against other major currencies during Tuesday’s Asian trading. The aussie dropped more than 1 cent versus the US dollar following the RBA’s announcement; from the 77 cents’ level down to below 76. The previous week’s weaker-than-expected inflation rate for the first quarter played a key part in the bank’s decision, as persistently low inflation in previous months as well [..]

Technical Analysis – EURAUD approaches 200-DMA on strong upside momentum

Posted on May 3, 2016 at 7:15 am GMT

EURAUD has seen a strong rally over the past week and this has taken prices above the 50-day moving average and towards the 200-day moving average. The near-term bias is bullish with RSI sharply above 50 and the MACD histogram turning positive. However, with RSI fast approaching overbought territory, there may be limited scope for further strong gains. In the medium term, EURAUD remains within its 8-month range and the neutral outlook is supported by prices moving into the Ichimoku [..]

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. XM accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The research and analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests and to disregard any conflicts of interest in providing our services.

CFDs are leveraged products. CFD trading may not be suitable for everyone and can result in losing all of your invested capital, so please make sure that you fully understand the risks involved.

How can we help?

Live Chat Terms

How to Access

Telegram Chat Terms

News