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Technical Analysis – AUDUSD pauses downtrend

Posted on December 11, 2014 at 8:14 am GMT

AUDUSD paused its decline and bounced from 0.8223 – a 4-year low – to 0.8374 by early Thursday. The doji candlestick formation on Tuesday represents indecision in the market and signals a potential rebound and a stall in the downtrend. This pause in the decline is also suggested by the RSI which is pointing back up and also the kijun-sen line is flattening out. A correction higher would test the key level at 0.8500. However the underlying trend remains bearish [..]

Asian Session – Kiwi jumps on hawkish RBNZ; dollar rebounds versus yen

Posted on December 11, 2014 at 8:10 am GMT

Dollar / yen was at the center of attention once again as the dollar staged a recovery from a dip to 117.43 the previous day to trade around 118.20. Excessive long dollar positions were combined with key risk events ahead for the pair such as Japanese elections on Sunday and the Federal Reserve meeting next week to substantially raise volatility. Some analysts were expecting the Fed to drop the reference to keeping interest rates low for a “considerable time” in [..]

Forex News – Preview: Japanese yen to experience more volatility following December 14 election

Posted on December 10, 2014 at 3:14 pm GMT

Japan will go to the polls on Sunday to vote a new lower house of Parliament of the “National Diet”. The elections are expected to be comfortably won by the incumbent Prime Minister Shinzo Abe. It remains to be seen however whether Abe will use this victory in order to push through potentially painful structural reforms that would boost the economy’s growth potential. Structural reforms are the so-called ‘third arrow’ of Abenomics and they include labor market reforms such as [..]

European Session – Euro capped at 1.2400 as focus turns to TLTRO

Posted on December 10, 2014 at 2:25 pm GMT

News flow was light today and with no major economic data releases to cause big moves, most major currency pairs consolidated at Tuesday’s levels as the broader theme was risk aversion. The only data of note today was China’s CPI which came in softer-than- expected at 1.4%, thereby keeping market sentiment down. The yen benefited from risk aversion, maintaining gains against the dollar and euro. However, key risk for the yen will be Sunday’s Lower House elections in Japan. The [..]

Asian Session – Yen gains as oil again under pressure

Posted on December 10, 2014 at 8:29 am GMT

The yen was volatile against the dollar and other currencies as many traders took profits on their dollar longs but still others were looking to reestablish positions from more favorable levels. Dollar / yen spiked to as low as 117.93 the previous day, before rallying to 119.90 during the early half of the Asian session and then backing down to 118.85. Increased volatility was the result of excessive long dollar positions, according to market experts. Crude oil was again under [..]

Technical Analysis – EURJPY has scope for a push to 150.00

Posted on December 10, 2014 at 7:59 am GMT

EURJPY has found support at 146.78 after retracing from a 6-year high of 149.76 hit on Monday. The recent bullish run from 134.13 on October 16 to 149.76 has scope to continue higher as the kijun-sen line continues to point north. The next target is 150.00. In the near term the pair is expected to find resistance formed by the tenkan-sen line at 148.24. A break above this would accelerate upside momentum. But a break below support at 146.78 could [..]

European Session – Dollar reverses recent rallies in risk averse market

Posted on December 9, 2014 at 2:27 pm GMT

Risk aversion dominated market sentiment on Tuesday, supporting safe haven assets like the yen and gold. There were no tier one economic data releases to give currencies a specific direction, leaving he dollar mixed against its various counterparts. Consequently, most of the rallies made by the greenback were reversed, particularly against the yen. The dollar hit a new 7-year high of 121.84 on Monday and has since fallen to 119.56 going into the US session on Tuesday. A lack of [..]

Forex News – UK manufacturing sector shows signs of weakness

Posted on December 9, 2014 at 11:24 am GMT

UK data from the industrial sector on Tuesday showed signs that the British economy was not performing that well in the fourth quarter. Growth in manufacturing has been a lot weaker than the services sector. According to the Office for National Statistics (ONS), output is still well below 2008 levels. Figures released for October showed industrial output contracted unexpectedly and manufacturing output tumbled by the most since May. After having jumped by a revised 0.7 percent in September, industrial output [..]

Asian Session – Yen rebounds on risk aversion, aussie drops

Posted on December 9, 2014 at 7:27 am GMT

The yen managed to rebound against the dollar as a wave of selling in commodities and risk assets such as stocks benefitted the safe haven yen. Dollar / yen dipped below 120 from the previous day’s 121.84 7-year high as S&P 500 futures were under pressure. The S&P 500 futures were down around 0.5% compared to the close of business on Wall Street. Front-month crude oil futures were trading below the $63 a barrel mark; a new 5-year low. This [..]

Technical Analysis – USDCHF keeps bullish momentum, hits 19-month high

Posted on December 9, 2014 at 7:12 am GMT

USDCHF has been in an uptrend since moving off 3-year lows in March. The pair rose from 0.8698 to reach a high of 0.9816 on Monday, a new 1 ½ year high. The May 22nd high of 0.9837 now comes into sight as the next target. After retracing all of the decline that occurred in October from 0.9685 to 0.9360, the upside momentum took hold and RSI has remained in bullish territory since then. The tenkan-sen and kijun-sen lines are [..]

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