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Technical Analysis – EURGBP maintains bearish bias

Posted on June 20, 2014 at 10:11 am GMT

EURGBP maintains its bearish bias as there have been a series of daily closes below the key 0.8000 level. Daily momentum remains negative; the RSI is well into bearish territory at 25. Prices are below the Ichimoku cloud and the tenkan-sen and kijun-sen are negatively aligned, adding to the bearish market structure. To the downside, immediate support is seen at 0.7958 which is the June 16 low, the lowest since September 2012. A break below this would precipitate a move [..]

Technical Analysis – USDCAD at 6-month lows

Posted on June 20, 2014 at 7:24 am GMT

USDCAD has been declining since the June 5 high of 1.0959, currently trading at 1.0820. On the 4-hour chart prices are below the Ichimoku cloud and the tenkan-sen and kijun-sen are negatively aligned, adding to the bearish market structure. RSI is bearish below 50. Strong resistance at 1.0886 (June 18 high) will cap the pair to the upside. Immediate support is at 1.0809, yesterday’s low. This is an important level and the lowest level since January, so consolidation around this [..]

Asian Session – Dollar still under pressure despite positive data

Posted on June 20, 2014 at 6:42 am GMT

The dollar was attempting to stabilize from the post-Fed meeting selloff as the negative momentum weakened. The euro traded up to 1.3626 against the greenback, while dollar / yen dipped slightly to 101.89. The euro continued to advance against the yen at 138.79 while the Australian dollar was drawn back towards the 94 cent level against its US counterpart. The big question of course is whether the FX market will continue to sell the US dollar or whether for the [..]

Forex news – Fed staying the course disappoints dollar bulls, risk assets rally

Posted on June 19, 2014 at 1:35 pm GMT

The key risk events of the Fed policy meeting, statement, updated staff economic forecasts and the quarterly press conference by Janet Yellen, proved to be dollar negative as they sparked aggressive sales of the greenback. Given that there were few changes in the overall tone of Fed communication and the outlook for monetary policy, the disappointment by dollar bulls could be hard to explain. The market’s disappointment was probably due to the fact that despite some upbeat news on the [..]

European Session – Dollar remained weak despite forecast-beating jobless claims

Posted on June 19, 2014 at 1:35 pm GMT

The US dollar remained weak across the board today as a result of the Federal Reserve failing to deliver a more hawkish message in the FOMC statement on Thursday. The continued dovish stance of the Fed as well as of Fed Chair Janet Yellen pushed investors to sell the dollar. Even better-than-expected US initial jobless claims data today were not enough to convince market participants to buy back the greenback. The number of Americans filing new claims for unemployment benefits [..]

Technical Analysis – EURUSD rises above 1.36

Posted on June 19, 2014 at 7:31 am GMT

EURUSD continues its rally for a second day, breaching the 1.36 handle. It seems like the pair is coming out of a short-term base where it had consolidated at just above the 1.3500 level last week. On the 4-hour chart tenkan – sen and kijun-sen are now positively aligned and RSI has turned up and is above 50 in bullish territory. The market has risen above the Ichimoku cloud and broken a key resistance level at 1.3589. A move higher [..]

Asian Session – Dollar hit by Yellen’s pledge to continue easy policy

Posted on June 19, 2014 at 6:43 am GMT

The week’s big event, the Federal Reserve meeting, hurt the dollar but boosted risk assets, as Fed Chair Janet Yellen appeared ready to keep interest rates at zero for a “considerable” period following the end of tapering. The euro was trying to regain the 1.36 mark versus the US dollar following Yellen, trading around 1.3610, which was its highest in 10 days. Dollar / yen fell below the 102 level to 101.90 despite the positive risk sentiment. Sterling also benefitted [..]

European Session – Yellen and FOMC minutes grab market attention

Posted on June 18, 2014 at 1:30 pm GMT

The Federal Reserve is in the spotlight today, with all eyes being on the policy statement and a press conference by Fed Chair Janet Yellen later in the day. There are no surprises expected though from the Fed. The Bank of England policy meeting minutes were released today, showing the MPC vote on policy was unanimous. The minutes also noted some upside to GDP growth in the second half of the year. Apart from that the June minutes were not [..]

Forex News – US May inflation higher-than-expected but dollar little moved

Posted on June 18, 2014 at 12:35 pm GMT

News that US seasonally adjusted consumer prices increased by 0.4% month-on-month surpassed expectations of a 0.2% rise and a 0.3% rise during the previous month. The annual rate of inflation was 2.1%, which was the strongest reading since October of 2012. According to the Bureau of Labor Statistics, inflation was strong across the board, with many of the sub-components rising by more than 2%. Food prices were especially strong as they climbed by 0.5% month-on-month and by 2.5% year-on-year. Energy [..]

Technical Analysis – AUDUSD back below 0.94

Posted on June 18, 2014 at 7:11 am GMT

AUDUSD has turned back down after peaking at 0.9436 and is approaching the mid-Bollinger Band around the key 0.9300 level on the daily chart. RSI is close to 50 and the stochastic has crossed below its signal line, adding to the downside bias. A re-test of the bottom of the recent 0.9200 – 0.9460 trading range seems likely in the near-term. Important support levels come in at 0.9200 and 0.9153 – the area which includes the 200 day moving average [..]

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