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Technical Analysis – EURUSD testing 1.3500

Posted on July 21, 2014 at 2:04 pm GMT

The recent trend for the EURUSD has been bearish since early May and after prices fell below the Ichimoku cloud. The pair remains safe as long as it remains above the key 1.3500 level, which has been tested several times and has been holding up well. Momentum indicators are bearish, with RSI below 50 and the MACD below zero. However the stochastic is in extreme oversold territory signaling a possible correction for prices. To the upside, barriers are seen at [..]

European Session – Dollar gains amidst risk-off environment

Posted on July 21, 2014 at 1:31 pm GMT

Risk aversion was back in the markets as geopolitical uncertainty was back in the foreground as tensions rise over the conflict in Gaza and over the Ukraine. Safe haven demand has kept the dollar stronger against most major currencies except against the yen which is itself a safe haven asset. Speculation of a rate hike by the Fed is also lending support to the dollar especially against the euro. The euro was trading in the lower end of its recent [..]

Forex News – Canadian inflation higher than expectations but loonie rally not sustained

Posted on July 21, 2014 at 12:44 pm GMT

The news that Canadian inflation during June was higher-than-expected showed that inflation in the country was picking up more than perhaps the Bank of Canada would like. Year-on-year headline inflation climbed to 2.4% compared to expectations of a 2.3% rise. 2.3% was the inflation rate of the previous month. The core rate, which excludes the more volatile price categories such as food and energy, rose by 1.8% year-on-year compared to expectations of a 1.7% rise. It was the highest inflation [..]

Asian Session – Profit- taking on dollar ahead of tomorrow’s US inflation

Posted on July 21, 2014 at 6:57 am GMT

The euro and the yen regained some ground against the US dollar during Monday’s Asian trading in an otherwise quiet session as the lack of significant fresh economic data and a Japanese public holiday kept trading volumes low. The euro was trading at 1.3542 against the dollar compared to Friday’s close of 1.3526 as some buyers stepped in before the 1.3500 level. The area around 1.35 is particularly key for the euro to defend, since failure to hold that level [..]

Technical Analysis – GBPUSD maintains bullish outlook on Daily

Posted on July 21, 2014 at 6:46 am GMT

GBPUSD has been consolidating on the daily chart for the past three weeks. The overall market structure is bullish as prices created higher highs and higher lows since July 2013 and trading above the Ichimoku cloud and the 200-day moving average. The tenkan-sen and kijun-sen are positively aligned, adding to the bullish bias. Momentum has eased a bit but the RSI remains in bullish territory for now. The multi-year high of 1.7190 hit on Tuesday is now key resistance. To [..]

European Session – Damp risk appetite keeps risk currencies under pressure

Posted on July 18, 2014 at 1:03 pm GMT

Risk sentiment was still damp due to the global events and geopolitical tensions in the Ukraine and the Gaza strip. There were, however, some signs that currencies were trying to stabilize. With a lack of risk appetite the euro remained added pressure and traded at 1.3523 after bouncing off one-month lows of 1.3511 against the dollar. The Eurozone current account balance data today was worse-than-expected but did not have a huge impact on the euro. Neither did Bundesbank President Weidmann’s [..]

Forex News – Week Ahead – PMIs will be the main focus

Posted on July 18, 2014 at 10:05 am GMT

In the coming week economic data will focus on PMIs (Purchasing Managers Index) from various countries. Starting with the Eurozone, PMIs will be released on Thursday, with focus being on the larger Eurozone economies of Germany and France. All surveys will be flash readings from Markit on both manufacturing and services PMIs and tend to have more impact than the final readings. PMI data are important to watch as they can sometimes have a strong impact on the euro. The [..]

Technical Analysis – AUDUSD possible bearish head and shoulders pattern

Posted on July 18, 2014 at 8:21 am GMT

AUDUSD has found support at the lower Bollinger Band at 0.9330 on the daily chart. This is a key level since it is the base of a possible head and shoulders pattern. If this level doesn’t hold, then further downside will lead prices towards the 200-day moving average at 0.9202. A shift in the bearish structure would occur if prices break above resistance at the middle Bollinger Band at 0.9401. Further resistance stands at 0.9455 and 0.9505. Currently RSI is [..]

Asian Session – Light profit-taking on yen following geopolitics-driven rally

Posted on July 18, 2014 at 6:49 am GMT

There was some light profit-taking by yen longs during today’s Asian session, although the yen held near its strongest levels in 5 months against the euro and the dollar. The yen is trading very close to some key technical levels, which if broken, could lead to further gains for the Japanese currency. The yen has managed to defy predictions of further losses this year and has managed to post a positive performance against both the euro and the dollar. Specifically, [..]

Technical Analysis – USDJPY remains bearish below cloud

Posted on July 18, 2014 at 6:41 am GMT

USDJPY has taken a bearish turn again after failing to rise above the tenkan-sen and kijun-sen lines on the daily chart. The pair remains below the daily Ichimoku cloud and the downtrend line from April. Momentum is negative – RSI has fallen back into bearish territory, signaling potential for further downside. Scope is to target recent lows at 100.81 and then towards the February low of 100.74. Near term upside is likely to find resistance at 101.80. [..]

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