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Technical Analysis – EURUSD bearish long term outlook

Posted on October 22, 2014 at 7:31 am GMT

EURUSD has been in a downtrend since the May 8 high of 1.3992. It has retraced 23.6% of this downleg after bouncing from the key technical level of 1.2500. Resistance at 1.2850 has proven to be strong and is capping prices below this. The bias is to the downside as indicated by the RSI which is in bearish territory below 50. The tenkan-sen and kijun-sen lines are falling. Hourly support is seen ahead of the key psychological level of 1.2600. [..]

Asian Session – Euro drops on expectations of extra ECB stimulus, aussie flat after CPI

Posted on October 22, 2014 at 6:59 am GMT

The euro was holding near its 1.27 low of the past week at 1.2730, as speculation that the ECB would inject extra stimulus into the ailing Eurozone economy meant more selling of the single currency. Specifically, the rumor – reported by Reuters as it had several unnamed sources that confirmed it – was that as soon as December, the ECB was going to start buying corporate bonds. The ECB had bought covered bonds for the second consecutive day the previous [..]

European Session – Euro vulnerable after ECB talk of bond buying

Posted on October 21, 2014 at 2:15 pm GMT

The euro fell on rumours that the European Central Bank is planning to buy corporate bonds on the secondary markets as soon as December. The ECB soon denied these rumours but the euro still remained under pressure. It fell more than 100 pips against the dollar from 1.2838 down to as low as 1.2734. Other than this ECB talk, there were no economic data releases today. The next risk event for the euro will be the preliminary October PMIs out [..]

Forex News – Chinese growth slows a touch but beats expectations

Posted on October 21, 2014 at 1:17 pm GMT

China, as the world’s second largest economy, is particularly important for the health of the global economy. Given the worries about a possible global economic slowdown – particularly in countries and regions like the Eurozone and China – Chinese GDP data for the third quarter became particularly important. In the event, the Chinese data was not so bad, as despite indicating a slower growth rate, they exceeded expectations. More specifically, the year-on-year growth rate for the third quarter was 7.3% [..]

Technical Analysis – EURJPY challenging 137.00

Posted on October 21, 2014 at 7:53 am GMT

The key psychological level of 137.00 is being challenged. This is acting as a strong resistance level. Prices are expected to fall back as the underlying trend is bearish. The declining slope of the 200-day moving average signals a bearish bias as does the RSI which is below 50. Meanwhile the negatively aligned tenkan-sen and kijun-sen lines are also signaling a downside bias. Immediate support is seen at the key psychological level of 136.00. Below this another key technical level [..]

Asian Session – Yen, aussie rise following Chinese GDP

Posted on October 21, 2014 at 6:56 am GMT

Asian financial markets were giving some mixed signals on Tuesday; perhaps an indication that the recent wave of market turbulence is not quite over yet. The day’s most important statistic was Chinese GDP growth, which came in slightly better-than-expected and helped the Australian dollar, while some profit-taking in the Nikkei propelled the yen higher versus the US dollar. China’s growth during the third quarter came in at 7.3% year-on-year versus expectations of a 7.2% print. The fact that the number [..]

Forex News – American consumer sentiment strongest in 7 years according to survey

Posted on October 20, 2014 at 2:26 pm GMT

The US dollar rallied above the important technical level of 106.00 yen on Friday after being boosted by an upbeat American consumer sentiment report. The closely watched University of Michigan/ Thomson Reuters index on consumer sentiment in October rose to the highest in more than 7 years to 86.4. This was above forecasts for a drop to 84.1 from September’s 84.6 reading. The data for the sentiment survey was collected between September 25 and October 15. The markets responded positively [..]

European Session – Sterling breaches key 1.6100 level

Posted on October 20, 2014 at 1:45 pm GMT

There were few major economic releases today, keeping most currency pairs steady. The markets soon forgot the strong University of Michigan consumer sentiment data from Friday which had lifted the dollar. The greenback gave back those gains today. Focus shifts to Wednesday’s release of US inflation data, with headline CPI expected to weaken to 1.6% year-on-year. Another upcoming highlight of the week will be China’s GDP. The dollar eased back to Friday’s highs versus the yen after having rallied to [..]

Technical Analysis – USDCHF bulls struggling

Posted on October 20, 2014 at 7:50 am GMT

USDCHF has paused its decline from the October 6 high of 0.9685 but is at risk for a further decline back towards the key 0.9300 level. The tenkan-sen line has just crossed below the kijun-sen line, which is a bearish signal. RSI has been falling since the October 6 high although is resting on the 50 line currently. MACD has turned back down, indicating bearishness. Prices are hovering at 0.9454 – which is the 23.6% Fibonacci retracement level of the [..]

Asian Session – Dollar recovers further as risk appetite also bounces back

Posted on October 20, 2014 at 7:00 am GMT

The US dollar as well as high-yielding currencies such as the Australian dollar and the New Zealand dollar did well at the start of the week, helped by positive risk sentiment. Following strong economic data out of the United States – such as University of Michigan consumer confidence – the US stock market posted sharp gains on Friday and index futures were also up this morning. The yen fell, as dollar / yen climbed to a high of 107.38 before [..]

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