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Technical Analysis – EURJPY marks new 2014 low

Posted on August 7, 2014 at 7:00 am GMT

EURJPY continues its bearish trend and marked a new 2014 low at 136.13 yesterday. The tenkan-sen and kijun-sen lines are negatively aligned while the market is below the daily Ichimoku cloud and below the 200-day moving average, all adding to the bearish market structure. Immediate resistance is seen at 138.01, August 1 high and above this at 139.26 (July 3 high), which would limit any upside moves. RSI has dipped back into bearish territory and MACD remains below zero, signaling [..]

Asian Session – Aussie crashes after employment data; market awaits ECB

Posted on August 7, 2014 at 6:33 am GMT

The Australian dollar fell sharply during Thursday’s trading, following much weaker-than-expected employment data for July. Unemployment jumped to 6.4% compared with 6.0% during June. 6% was also the figure economists were expecting. This represented a 12-year high in unemployment and it was quite a shock for market participants. Employment fell by 300, as opposed to economists’ expectations of a gain of 12,000. The Australian Bureau of Statistics did caution however that statistical issues such as the rotation of the survey [..]

European Session – Euro hits new 8-month low on weak Italian GDP

Posted on August 6, 2014 at 2:07 pm GMT

The US dollar was broadly stronger against risk currencies due to damp risk sentiment today as geopolitical tensions are back to the fore regarding Russia and the Ukraine crisis. Meanwhile Tuesday’s strong US ISM non-manufacturing data also helped lend support to the greenback. The euro fell to a new 8-month low of 1.3332 in early European trading hours, also coming under pressure by disappointing Italian GDP data. Despite better-than-expected Italian industrial production figures (up 0.9% in June versus a prior [..]

Technical Analysis – AUDUSD bearish below 0.9400

Posted on August 6, 2014 at 10:01 am GMT

AUDUSD has fallen back below the key psychological support level of 0.9400 and is trading below the daily Ichimoku cloud, which adds to the bearish market structure. The pair is consolidating around the 23.6% Fibonacci retracement level of the 0.8659 – 0.9503 upleg (January to July). This level comes in at 0.9305. The 100-day moving average is capping the market. Meanwhile, the cloud bottom a 0.9351 acts as immediate resistance to the upside. The break of support at 0.9274 (August [..]

Forex News – Ukraine developments spook market

Posted on August 6, 2014 at 9:38 am GMT

News of intense fighting between the Ukrainian army and pro-Russian rebels in Eastern Ukraine as well as the buildup of Russian troops on the Russia-Ukraine border, depressed risk sentiment and boosted the allure of safe haven assets. It appears that Western sanctions against Russia, rather than leading to a de-escalation of the situation, could be having the opposite effect. The downing of the Malaysian Airlines flight over Eastern Ukraine has increased the tension between the European Union and Russia as [..]

Technical Analysis – EURUSD scope for losses to 1.3300

Posted on August 6, 2014 at 7:09 am GMT

EURUSD extended losses to make a new 2014 low at 1.3348. Technical indicators have turned very bearish, with RSI below 50 and approaching oversold levels and MACD below zero. The Tenkan and Kijun lines are increasingly negative, adding to the downside bias. The next key level comes at 1.3300. There is scope to target the November 7 low at 1.3293. Immediate resistance is seen at 1.3444, August 1 high. This is also the 78.6% Fibonacci retracement level of the 1.3293 [..]

Asian Session – Dollar rallies on strong data and geopolitics

Posted on August 6, 2014 at 6:46 am GMT

The US dollar extended its gains following encouraging economic statistics and negative geopolitical developments. The ISM non-manufacturing index came in at a near 9-year high, with all of the report’s components except prices coming in very strong. Services account for nearly 80% of the US economy. In addition, factory orders climbed 1.1% month-on-month in June against expectations of a 0.6% increase, which showed that manufacturing and investment in equipment was also doing well. The data again led to speculation that [..]

European Session – Dollar broadly stronger after solid ISM non-manufacturing data

Posted on August 5, 2014 at 2:05 pm GMT

The euro extended losses after some disappointing data on the purchasing mangers’ index (PMI) for the services sector. While the euro zone’s final services PMI came in at 54.2, up from 52.2 in June, it slowed slightly from a preliminary reading of 54.4. It was Italy’s services PMIs which disappointed markets and pushed the euro lower. The Italian PMI reading fell more-than-expected to 52.8 in June from a reading of 53.9 in June. Analysts had expected the index to inch [..]

Forex News – Reserve Bank of Australia keeps rates and outlook steady

Posted on August 5, 2014 at 10:17 am GMT

The decision by the Reserve Bank of Australia to keep interest rates unchanged was widely anticipated by all economists that were polled ahead of the decision. Rates were kept at a record low of 2.50% with the rationale that the economy would post modest growth rates without causing wage pressures and higher inflation. Steady rates were appropriate according to the RBA and this reinforced expectations that rates would remain unchanged for the foreseeable future – the next year or so [..]

Technical Analysis – EURGBP turns bearish

Posted on August 5, 2014 at 9:52 am GMT

EURGBP broke out of the downward channel to rise towards the 78.6% Fibonacci retracement level of the move from 0.7750 to 0.8813. This level at 0.7979 proved to be a strong resistance level and the pair failed to decisively break above it. Prices are falling back towards the channel. RSI has turned down towards 50 signaling falling momentum. Support is seen at 0.7873 which is the July 23 low, a near 2-year low. The general trend is bearish, given that [..]

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