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Technical Analysis – USDJPY 4-hourly: Dollar consolidates post-BOJ rally

Posted on January 8, 2015 at 9:27 am GMT

The US dollar has been consolidating its more than 10-yen rapid November- early December gain lately. It has not made a new high since December 8 of the previous year – around a month or so. Although the US dollar has in the meantime made fresh highs versus the other majors such as the euro, the pound and the Australian dollar, the December 8 high of 121.84 against the yen has held. In mid-December, as a result of a violent [..]

Asian Session – Dollar gains after bullish data; euro under pressure because of deflation

Posted on January 8, 2015 at 8:41 am GMT

The US dollar was strong across the board in Thursday’s Asian trading, as bullish employment numbers from the ADP payrolls processing company boosted expectations of a strong number out of Friday’s government employment report. The Federal Reserve meeting minutes did not contain any surprises; just that some board members were concerned about the possibility of low inflation that could in turn hinder the Fed’s ability to eventually raise interest rates. A strong rally in risk assets the previous day hurt [..]

European Session – Strong dollar ahead of FOMC, negative Eurozone CPI push euro to 9-year low

Posted on January 7, 2015 at 2:37 pm GMT

The euro moved another leg lower against the dollar today to touch a 9-year low of 1.1818. The main catalyst for today’s move was a lower-than-expected Eurozone CPI figure. Inflation fell to an annual rate of – 0.2% in December, the first time it went negative since 2009. Expectations were for a drop in the annual inflation rate to – 0.1%. The main contribution to a lower CPI rate came from energy prices, which is an important component in the [..]

Asian Session – Euro makes fresh 9-year low vs dollar; yen gives back gains on risk asset recovery

Posted on January 7, 2015 at 8:06 am GMT

The euro was under pressure again today, making fresh lows at 1.1848 as traders prepared for the Eurozone preliminary CPI data for December. Year-on-year inflation in the single currency area could dip into negative territory at -0.1% according to a Reuters economists’ poll. Expectations for the announcement of fresh Quantitative Easing measures are building up ahead of the January 22nd ECB meeting. In addition, there is caution ahead of the January 25 Greek election that could unseat the current pro-bailout [..]

Technical Analysis – EURJPY bearish below cloud

Posted on January 7, 2015 at 7:51 am GMT

EURJPY turned increasingly bearish after breaking below the Ichimoku cloud on the daily chart. Momentum is bearish as well, since the RSI is below 50.The negatively aligned tenkan-sen and kijun-sen lines are also adding to the bearish market structure. The pair is approaching a critical area around the psychological 140.00 level. The 61.8% Fibonacci retracement of the upleg from 134.13 to 149.76 lies at 140.00 and the 200-day moving average currently stands at 140.24. A break below 140 gives scope [..]

European Session – Euro, pound give ground after disappointing PMIs

Posted on January 6, 2015 at 3:35 pm GMT

The euro and the pound were the main losers of today’s European session while the US dollar managed to gain ground after disappointing business confidence surveys from the two main European economies. US data was also weaker-than-expected, although they did not change the market’s overall positive assessment of the US economy. Starting with the Eurozone, the final composite Markit PMI for the region during December came in at 51.4 versus a preliminary reading of 51.7. This suggested that the Eurozone [..]

Forex News – Greek elections on January 25 a major risk for the euro

Posted on January 6, 2015 at 11:03 am GMT

Following the failure to elect a new President of the Republic after three attempts (the final one was on December 29), the Greek parliament was dissolved and snap general elections were called for January 25. The current coalition government, which has agreed to abide by the country’s obligations in the memorandum of understanding with the Troika of international lenders, is on course to lose the upcoming elections. The potential winner of the elections is the SYRIZA far-left party, which has [..]

Technical Analysis – US 500 Daily: US stocks start 2015 on a negative footing

Posted on January 6, 2015 at 8:18 am GMT

The index of 500 largest-capitalized US stocks registered a fresh all-time high on December 29 at 2092 and closed 2014 with impressive gains of more than 11%. During the New Year however, the US stock market benchmark has seen substantial profit-taking. The index is an important indicator of risk appetite and of confidence in the US and global economies. The drops have led the price action to dip inside the cloud according to the Ichimoku analysis and it remains to [..]

Asian Session – Yen rallies on safe haven appeal, oil below $50

Posted on January 6, 2015 at 7:39 am GMT

The Japanese yen put in a strong performance during today’s Asian session, as risk aversion caused traders to seek safe havens. Oil crashed below 50 dollars a barrel, which caused worries about heavily-weighted energy stocks as well as about the health of the global economy. There were also concerns that Greece could potentially exit the Eurozone after the January 25 elections, which could cause a confidence crisis in the single currency. The S&P 500, the US stock market benchmark, registered [..]

Technical Analysis – EURUSD Daily: Euro slides to 9-year low of 1.1859

Posted on January 5, 2015 at 10:04 am GMT

The euro marked its lowest point since March of 2006 today, after a break of the 1.20 key psychological support level also led to the violation of the 2010 low of 1.1875. The collapse was caused by stop-loss orders that were triggered when 1.20 gave way. In just 2 trading sessions in 2015 so far, the euro has dropped from 1.21 (where it ended 2014) to 1.1860. The pair is potentially eyeing the 1.16 level, which was the 2005 low. [..]

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