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Technical Analysis – AUDUSD strongly bearish

Posted on December 4, 2014 at 7:59 am GMT

AUDUSD remains bearish as the downtrend continues to new 4-year lows. The pair reached 0.8357 in early European session trading and looks set to head even lower. The decline accelerated after breaking below the 50% Fibonacci level at 0.8546 of the upleg from 0.6008 to 1.1078. The next key technical level that would act as immediate support is seen at 0.8300 and then at 0.8200. To the upside prices are capped at 0.8500. Overall the bias is strongly bearish and [..]

Asian Session – Dollar knocks on 120 yen door, as euro holds 1.23

Posted on December 4, 2014 at 7:35 am GMT

The dollar again advanced versus the yen while the euro was waiting for today’s ECB meeting later on. Dollar / yen made fresh 7-year highs at 119.94, as polls in Japan indicated that Prime Minister Abe would boost his government’s parliamentary majority in the upcoming elections. This in turn meant that the stimulus policies that had so weakened the yen would probably continue. Strong data out of the United States boosted the dollar. A measure of private payrolls for November [..]

European Session – Pound firms up after UK services PMI

Posted on December 3, 2014 at 2:28 pm GMT

The pound was strong after data showed the UK services sector expanded faster-than-expected in November. The closely watched Markit/CIPS services PMI rose to 58.6 in November after a previous sharp fall to 56.2. This was welcome news as it showed some recovery in the economy’s largest sector. Sterling rose versus the dollar to as high as 1.5696 after bouncing off a low of 1.5618. The focus from now on will be Thursday’s Bank of England policy meeting. The euro tumbled [..]

Forex News – Aussie crashes to fresh 4-year low after big miss in GDP numbers

Posted on December 3, 2014 at 11:05 am GMT

News that the Australian economy only grew by a 0.3% rate quarter-on-quarter during Q3 was a significant negative surprise. Economists were expecting the economy to grow by 0.7%. The yearly growth rate was at 2.7% versus 3.1% that was expected. Although these growth rates would probably excite other developed countries, the change in national income, which mainly adjusts for capital consumption (depreciation) and certain taxes, was negative. Contrary to other developed economies, Australia also has positive demographics due to population [..]

Technical Analysis – USDJPY hits new 7-year high as bullish trend continues

Posted on December 3, 2014 at 8:07 am GMT

USDJPY extended higher to hit yet another new 7-year high of 119.43 early on Wednesday. There is scope to target the key 120.00 level. Looking at the daily chart, the upside bias is reinforced by the positively aligned tenkan-sen and kijun-sen lines and the rising Ichimoku cloud. RSI is in bullish territory. It is however at overbought levels as is the stochastic, warning of a pause in the upside momentum. The overall trend is bullish so any dips would expect [..]

Asian Session – Aussie and yen drop to fresh lows

Posted on December 3, 2014 at 7:44 am GMT

A weak Australian GDP and optimism about the US economy’s prospects from Fed officials pushed the aussie down and kept the US dollar strong during today’s Asian session. The dollar index hit a fresh 4-year high at 88.70 as the dollar climbed to as high as 119.44 against the yen (a fresh 7-year high) and euro / dollar was also pushed lower to around 1.2369. Fed officials such as Vice Chair Stanley Fischer and New York Fed President William Dudley [..]

European Session – Sterling down after UK Construction PMI, dollar broadly stronger

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

Sentiment for the US dollar was strong today, especially after supportive remarks from New York Federal Reserve Chief William Dudley on Monday. Dudley played down the disinflationary threat of the fall in oil prices by saying they would likely boost income growth and help the US economy. Other encouraging remarks made were that a rate hike in mid-2015 was reasonable. The dollar gained versus most major counterparts, particularly against the yen as it rose above the key 119.00yen level to [..]

Forex News – RBA keeps rate at 2.5% as falling iron ore prices drag economy

Posted on December 2, 2014 at 12:03 pm GMT

The Reserve Bank of Australia held its monthly monetary policy meeting on Tuesday and made a decision to keep its overnight cash rate unchanged at 2.5%. This the 16th consecutive month that the benchmark interest rate has been left at a record low as the central bank attempts to give the economy a chance to recover from the effects of a slowing mining sector and falling export prices. The RBA decision was widely expected by the market which is probably [..]

Technical Analysis – GBPUSD pauses downtrend

Posted on December 2, 2014 at 8:39 am GMT

GBPUSD remains neutral for the moment, consolidating around the 61.8% Fibonacci retracement level of the upleg from 1.4811 to 1.7190. Resistance is seen at 1.5825. Failure to break above this would see prices extend lower after breaking immediate support at 1.5583 to target the 78.6% Fibonacci level at 1.5322. Overall the trend is bearish as can be seen on the daily chart. RSI is bearish territory below 50. The Ichimoku cloud is falling and prices are below it. The tenkan-sen [..]

Asian Session – Commodity rebound causes dollar rally to stall

Posted on December 2, 2014 at 7:54 am GMT

The US dollar traded mostly sideways, as a rebound in commodities and commodity currencies weighed on the greenback and prevented it from moving higher. Euro / dollar was trading little changed around 1.2463 and dollar / yen moved higher to 118.57 – not far from its 119.14 high registered the previous day. The yen was under some pressure after yesterday’s downgrade of Japan by Moody’s and news that rating agency S&P was also doubting Japan’s fiscal consolidation plan. The effect [..]

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