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Technical Analysis – USDJPY maintains upside momentum

Posted on December 23, 2014 at 7:46 am GMT

USDJPY has regained upside momentum, rising for 5 straight days after bouncing off 115.55. The kijun-sen line has crossed above the tenkan-sen line which is a bullish signal. RSI is back into bullish territory above 50. There is scope for a retest of 121.84, the 7-year high hit on December 8. To the downside, there is immediate support at 117.90 which is the 23.6% Fibonacci retracement level of the move up from 105.19 to 121.84. Below this strong support is [..]

European Session – Euro supported by rise in Eurozone consumer confidence

Posted on December 22, 2014 at 3:41 pm GMT

Currency markets were relatively quiet at the beginning of a holiday-shortened week. Consequently trading volumes were light but there was slight risk appetite. After revisiting Friday’s 2-year low in early Asian session trading, the euro edged higher in the European session to trade between 1.2249 and 1.2271. Eurozone consumer confidence data helped support the euro. According to a flash estimate from the European Commission, the confidence index rose 0.6 points in December from the prior month’s revised minus 11.5 points. [..]

Technical Analysis – AUDUSD hovers at 4-year lows, bearish outlook remains

Posted on December 22, 2014 at 8:03 am GMT

AUDUSD has paused its decline and is consolidating near a 4-year low of 0.8105 hit on December 17. Any bounce higher would see immediate resistance at the tenkan-sen line at 0.8239. As long as the market remains below 0.8500, the bearish bias is strong. A break back below 0.8105 would target the May 2010 low of 0.8064 and below this there is scope to reach the 61.8% Fibonacci level of 0.7948 of the upleg from 0.6008 to 1.1078. The underlying [..]

Asian Session – Euro touches 2-year low vs dollar on ECB QE speculation

Posted on December 22, 2014 at 7:57 am GMT

The euro tested its 2-year low against the dollar as it again dropped to 1.2219 that was also registered on Friday. The euro subsequently managed to rebound to 1.2261. Recent ECB speakers such as ECB council member Luc Coene and Vice President Vitor Constancio encouraged speculation that Quantitative Easing using sovereign bonds could take place. Specifically, there would be a reassessment of the effectiveness of existing stimulus measures according to Constancio and government bond purchases would help restore investor confidence [..]

European Session – Dollar retains post-FOMC strength ahead of weekend

Posted on December 19, 2014 at 2:29 pm GMT

The last day of the trading week was quiet in the absence of major economic data releases. Most currency pairs consolidated in ranges and US dollar strength was the main theme. The result of the FOMC meeting this week helped underpin the greenback. The euro edged down to 1.2252 and has almost retraced the entire rally from the December 8 low of 1.2246 to the December 16 high of 1.2569. Better-than-expected data from Germany on PPI and consumer climate did [..]

Forex News – Week Ahead – GDP data in focus

Posted on December 19, 2014 at 11:13 am GMT

The week ahead has few major economic releases as the year draws to a close. The main data of importance will be Gross Domestic Product figures (GDP) from various countries – UK, Canada and the US. The data will be final estimates for third quarter GDP in all three countries. The UK will release its final third quarter GDP numbers on Tuesday. The Office for National Statistics’ second estimate showed the UK economy expanding by 0.7% in the months from [..]

Asian Session – Yen retreats because of risk asset rally

Posted on December 19, 2014 at 8:24 am GMT

The yen was under pressure during today’s Asian session, trading above the 119 mark against the US dollar (119.46 was the session high), as a powerful pre-Xmas rally in risk assets led traders to sell the safe haven yen. Dollar / yen was trading at 119.20 as the Bank of Japan decided to maintain the annual pace of asset purchases at 80 trillion yen. The Bank of Japan and Governor Kuroda were relatively upbeat on economic prospects, saying there was [..]

Technical Analysis – USDJPY extends recovery to target 7-year high

Posted on December 19, 2014 at 8:18 am GMT

USDJPY continues to extend higher after bouncing off a low of 115.55. The pair found support at the 38.2% Fibonacci retracement level of the upleg from 105.19 to 121.84. It is targeting resistance at 119.65. The upside momentum is back as the RSI has crossed above 50 into bullish territory. The Ichimoku cloud is thickening, which is supporting the bullish market structure. The upside recovery is expected to continue after breaking past resistance at 119.65 to target the 7-year high [..]

European Session – UK retail sales boost sterling, dollar higher on US jobs data

Posted on December 18, 2014 at 2:48 pm GMT

The dollar extended its rally against the yen today after upbeat US initial jobless claims data that indicate the labour market continues to strengthen. This pleased the markets because any jobs-related data is closely watched by the Federal Reserve as the timing of the first rate hike is data-dependent. On Wednesday, Fed Chair Janet Yellen reiterated this while talking at a press conference following the FOMC statement. The dollar surged after Yellen sent signals to the markets that the Fed [..]

Forex News – Yellen puts risk appetite back, dollar rises

Posted on December 18, 2014 at 11:13 am GMT

Federal Reserve Chair Janet Yellen put risk appetite back in the markets after her hawkish comments made on Wednesday following the conclusion of a 2-day Federal Reserve policy meeting. Yellen said that as progress in achieving maximum employment and 2% inflation continues, at some point it will become appropriate to begin reducing policy accommodation. However, the Fed is eyeing those improvements with caution and it isn’t yet convinced it can start to pull away its stimulus of record-low interest rates. [..]

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