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Forex News – Eurozone economic morale worsens in August to 8-month low

Posted on August 28, 2014 at 11:23 am GMT

A slew of data from the Eurozone today were not very inspiring as they did not provide optimism for the region’s economic recovery. Economic sentiment surveys for the 18 countries in the euro-area were overall soft. According to the European Commission, economic morale in August was the worst since December 2013, falling more-than-expected to 100.6 from a previous revised 102.1 in July. Forecasts for the index were for a drop to 101.5. A main catalyst for the decline was a [..]

Technical Analysis – EURJPY falls back into downward channel

Posted on August 28, 2014 at 6:59 am GMT

After a false breakout above the downward channel, EURJPY resumed its downtrend within it. The Ichimoku cloud has proven to be strong resistance as prices tested it at the 138.00 level and have since endured losses down to 136.73. Next major support is seen at 135.70 which is the August 8 low (a 9-month low). EURJPY is trading back below the 23.6% Fibonacci retracement level of the 143.46 (April 2) – 135.71 (August 8) downleg. This shows strong weakness in [..]

Asian Session – US dollar continues pullback as aussie gains on business investment plans

Posted on August 28, 2014 at 6:31 am GMT

The US dollar traded on the soft side today as it returned some of its recent gains versus other majors. The euro climbed above the 1.32 level, but ran into some sell orders in the 1.3215-20 area. Dollar / yen was kept under the 104 level after it fell as low as 103.67. It then rebounded to around 103.75-80. Recent action is unlikely to dissuade US dollar bulls, as one could claim it is part of a healthy process of [..]

European Session – Broad dollar weakness helps stabilize euro, sterling

Posted on August 27, 2014 at 2:30 pm GMT

The US dollar trimmed recent gains today in a relatively quiet day that lacked key economic data releases. The only data out of Europe was on German import prices which dropped more than expected by 0.4% month-over-month instead of 0.1% drop forecasted. Also the German GfK Consumer Climate index disappointed by showing confidence the Eurozone’s largest economy proved weaker than expected for the coming month. Focus will shift to tomorrow’s German CPI data. The euro remains under pressure near one-year [..]

Forex News – US economy on positive track according to durable goods, consumer confidence

Posted on August 27, 2014 at 1:53 pm GMT

The latest data from the US economy released on Tuesday was moderately positive and they showed that both business investment and consumer confidence were broadly on track. This benefited the US dollar and strengthened the existing arguments that the dollar’s rally may have further to run. Starting with durable goods orders, the headline number jumped by 22.6% month-on-month, crashing expectations of a 7.5% rise. The main reason for this outsized gain was various airplane orders received by Boeing following a [..]

Technical Analysis – USDCAD falls for second day

Posted on August 27, 2014 at 10:06 am GMT

USDCAD is weakening and falling for a second day. The recent rally from the July 3 low of 1.0619 to August 6 high of 1.0984 has stalled and since then the trend has been sideways. The tenkan-sen and kijun-sen lines are now flat and RSI has turned down, all signaling that the upward momentum has faded. There was an attempt to breach resistance at 1.0984 (Aug 6 high) but failed. So this false breakout favors further short-term weakness. Near-term support [..]

Technical Analysis – USDJPY overbought

Posted on August 27, 2014 at 7:12 am GMT

USDJPY medium-term bias remains on the upside with scope to test the 78.6% Fibonacci level of the 105.43 (January) – 100.74 (February) downleg at 104.42. The strong positive alignment of the daily tenkan-sen and kijun-sen lines and prices above the 200-day moving average all highlight the bullish market structure. However, daily RSI and the stochastic are at overbought levels, which are signs that the market is overextended and a correction is due. Support is seen at 103.64, the 61.8% Fibonacci [..]

Asian Session – Euro continues decline to fresh 11-month low vs dollar

Posted on August 27, 2014 at 6:31 am GMT

The euro continued to drop to fresh 11-month lows against the US dollar, on anticipation of weak Eurozone consumer and business sentiment figures and month-on-month flat German inflation numbers tomorrow. Data out of the Eurozone are expected to reinforce the case in favor of Quantitative Easing from the European Central Bank, which may put additional downward pressure on the euro. The German Gfk consumer sentiment numbers for September came out weaker-than-expected today at 8.6 (9 was the previous and the [..]

European Session – Dollar jumps as US durable goods orders surge to record highs

Posted on August 26, 2014 at 1:55 pm GMT

The dollar is strong and hovers at its highest level against the euro in almost a year as the divergence between Europe and the United States grows. As the US economy shows continuing signs of growth, economic prospects for Europe are dimmer, leading to speculation of looser monetary policy from the European Central Bank. Poor German economic data and comments by European Central Bank chief Mario Draghi recently have pressured the euro which slid against the dollar to 1.3178 today, [..]

Forex News – US equity benchmark S&P 500 crosses landmark 2K level

Posted on August 26, 2014 at 12:24 pm GMT

The news that the US stock market benchmark index of the 500 largest companies by market capitalization hit the 2,000 level was a significant milestone for the bull market in equities. This marks a remarkable turnaround from the infamous 666 low hit by the S&P 500 in March of 2009. The new all-time record for US stocks is an indication that risk sentiment remains quite positive and it should be noted that US equities have outperformed most other developed market [..]

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