News / Page 169

Technical Analysis – USDJPY neutral, weighed by Ichimoku cloud

Posted on October 14, 2015 at 6:46 am GMT

Since its plunge from 125.27 in mid-Aug to 116.19 on Aug 24, USDJPY has been confined to a 118.58-121.31 range. The key level that prices are hovering around is at 120.00. USDJPY remains capped by the daily Ichimoku cloud and this is keeping the bias for a bearish resumption. The tenkan-sen and kijun-sen lines are negative aligned, highlighting the overall bearish market structure. A break below the October 2 low of 118.67 would increase a downside move. RSI is trending [..]

European Session – Euro tests 1.14, sterling down on negative inflation, Swedish crown hits 4-month high

Posted on October 13, 2015 at 1:59 pm GMT

Sterling was one of the worst performing currencies today as it weakened into and through the UK inflation release with the headline CPI number entering negative territory at -0.1% year-on-year. Merger news only briefly caused the pound to spike but the announcement of an improved offer for SABMiller PLC from AB InBev failed to provide long lasting support and cable fell from a session high of 1.5386 to 1.5199. The decline accelerated after data showed UK CPI unexpectedly fell in [..]

Technical Analysis – EURGBP strengthens bullish bias as it approaches 0.75

Posted on October 13, 2015 at 1:36 pm GMT

EURGBP has been looking increasingly bullish since late August and the recent golden cross of the 50- and 200-day moving averages underlines the positive momentum. The pair hit an 8½-month high of 0.7492 today, breaking past the May high of 0.7483. The near-term bias remains strongly bullish with RSI and the stochastics trending sharply upwards. The strong positive momentum is likely to continue in the medium term as all indicators are pointing upwards. As prices approach the key psychological level [..]

UK dips back into deflation in September; pound slumps

Posted on October 13, 2015 at 11:06 am GMT

UK inflation slipped back into negative territory in September, as the 12-month CPI fell to -0.1% from 0.0% the prior month. Consensus estimates were for CPI to stay unchanged. The month-on-month rate also fell by 0.1%. The core rate, which excludes energy, food, alcohol and tobacco, was unchanged at 1.0% year-on-year, against expectations that it would pick up to 1.1%. The biggest contributor to the change in the 12-month rate was a smaller-than-expected rise in the price of clothing and [..]

Asian Session – Dollar back at 3-week lows; China imports plunge

Posted on October 13, 2015 at 7:35 am GMT

Better-than-expected exports data in China failed to lift equities in Asia as a big slump in imports underscored concerns about the slowing economy. Exports in September fell by 3.7% year-on-year, beating estimates that they would fall by 6%. However, imports plunged by 20.4% over the year, much bigger than the fall of 15.9% anticipated. Some analysts expect Chinese authorities to announce further stimulus measures to boost the domestic economy in the coming months. In Australia, business confidence improved in September, [..]

Technical Analysis – NZDUSD rally to 3-month high meets barrier

Posted on October 13, 2015 at 6:29 am GMT

NZDUSD has made some strong gains, but is now facing a significant hurdle at 0.6749, which is the 38.2% Fibonacci retracement of the 0.7743- 0.6139 (April-August) decline. Since RSI has reached overbought territory there is a risk for corrective moves back down. This has already happened on Tuesday after the pair reached a 3-month high of 0.6738 on Monday. The support area lies between 0.6516 and 0.6466. Looking at the bigger picture, the market has risen above the Ichimoku cloud, [..]

European Session – Dollar weighed down by Fed as Euro eyes 1.14 dollars

Posted on October 12, 2015 at 2:12 pm GMT

After a positive close in Asia, equities in Europe were mixed in quiet trading with a light calendar for European data. Trading is also expected to be very thin in the US session due to Columbus Day celebrations. The US dollar drifted lower for much of the day but bounced back from three-week lows. The greenback was weighed down by comments from Fed Vice Chairmen Stanley Fischer over the weekend. Speaking at the IMF’s annual meeting in Peru, Fischer said [..]

Technical Analysis – US benchmark index finds resistance at 7½-week high

Posted on October 12, 2015 at 11:02 am GMT

The US benchmark index touched a 7½-week high of 2013.30 on Friday but it met resistance at the 61.8% of the Fibonacci retracement level. The index has now retraced 61.8% of the July-August downleg and is the second time it has found resistance around 2013. With RSI looking steady above 50, the momentum is strong. But the stochastics are in overbought territory, signalling a possible reversal in the coming days. The medium-term picture is neutral though as prices have some [..]

Asian Session – Equities and commodities extend rally as dollar retreats

Posted on October 12, 2015 at 7:40 am GMT

Asian equities rose sharply on Monday as energy and commodity linked shares were boosted by the recovery in oil and commodity prices. Shares in China were 3.5% higher after the People’s Bank of China expanded a pilot scheme to inject liquidity into the banking system. Market sentiment was also lifted on reports that the PBOC’s deputy governor was quoted as saying that the stock market correction is “almost over”. In the currency markets, the dollar extended Friday’s losses on fading [..]

Technical Analysis – AUDUSD rallies to 7-week high, testing cloud top

Posted on October 12, 2015 at 4:43 am GMT

AUDUSD has made an impressive rally since bouncing at the end of September from a low of 0.6935. The pair reached a seven-week high of 0.7346 early on Monday. Prices are now testing the top of the daily Ichimoku cloud. A decisive close above the cloud would strengthen the upside momentum. The intra-day bias is bullish as the RSI is positive and rising. The tenkan-sen line has made a bullish crossover above the kijun-sen line. For a more sustained bullish [..]

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