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Forex News – Australian GDP tops expectations but aussie meets with resistance at 93 cents

Posted on June 4, 2014 at 12:19 pm GMT

The news that Australian GDP grew by a strong 1.1% during the first quarter (quarter-on-quarter) was an affirmation that the economy was doing very well. The performance represented an acceleration from the previous quarter’s growth rate of 0.8% and was also higher than the consensus expectation of 1.0% growth by economists. It was the fastest quarterly growth rate since the fourth quarter of 2011. A major reason behind the faster growth experienced in Australia is the boom in the export [..]

Technical Analysis – AUDUSD looking bearish (4H)

Posted on June 4, 2014 at 8:46 am GMT

AUDUSD has drifted back to the middle Bollinger Band on the 4-hour chart and is hugging the 23.6% Fibonacci retracement level of upleg from 0.8659 (January 24 low) to 0.9460 (April 10 high) at 0.9270. The U.S dollar strength is capping any upside move at the key psychological level of 0.9300. To the downside, support is seen at 0.9209 (May 21 low). RSI has just risen into bearish territory above 50. Clearer technical signals are needed. But the bias tends [..]

Asian Session – Dollar gains versus yen while the euro holds its ground

Posted on June 4, 2014 at 6:32 am GMT

The dollar gained against the yen on the back of rising treasury yields, while the euro held relatively well despite weaker-than-expected inflation numbers out of the Eurozone. The dollar reached a 1-month high versus the yen at 102.76, as the yield on the 10-year Treasury bond in the US reached as high as 2.60% – its highest for 2 weeks. This represented a sharp and significant move from the 11-month lows around 2.40% the yields had reached only the previous [..]

Technical Analysis – USDJPY attempts to rise above Ichimoku Cloud

Posted on June 4, 2014 at 6:19 am GMT

USDJPY is attempting to break through the upper level of the Ichimoku cloud on the daily chart, which is currently between 102.50-102.65. The pair briefly breached it to hit a high of 102.78 before easing back down. A daily close above 102.65 is required for the bearish bias to strengthen. Technicals have only just begun to turn bullish. Tenkan-sen has crossed above kijun-sen and the RSI is above 50. To the upside, resistance is seen at 103.00 and to the [..]

European Session – Dollar holds gains as US Treasury yields rise, euro resilient after soft EZ CPI

Posted on June 3, 2014 at 1:41 pm GMT

The euro remained resilient despite disappointing inflation data from the Eurozone today, which should strengthen the case for more easing by the European Central Bank on Thursday. The euro was volatile after the flash CPI reading was released for the Euro-region, touching lows of 1.3586 against the dollar before bouncing to reclaim the 1.36 handle, climbing to as high as 1.3635 by 12:13 GMT. The euro gained 0.24% during the European session. The headline CPI fell in May to 0.5% [..]

Forex News – Eurozone inflation misses forecasts but unemployment also dips; euro climbs

Posted on June 3, 2014 at 12:14 pm GMT

Today’s inflation and unemployment statistics for the Eurozone were some of the last economic data that was released ahead of the June 5 ECB Governing Council meeting. Flash inflation missed expectations by coming in at 0.5% compared to 0.7% in April. 0.5% matches the March inflation estimate and is the lowest inflation rate since October of 2009 when the Eurozone actually experienced deflation. Core inflation, which excludes energy, food, alcohol and tobacco was at 0.7%. A near 5-year low for [..]

Technical Analysis – EURJPY bullish bias (4H)

Posted on June 3, 2014 at 8:34 am GMT

EURJPY rallied to 139.33 today and has found support at the 61.8% Fibonacci retracement level of the upleg from 136.21 (February 4 low) to 143.77 (March 7 high). Technical indicators have turned marginally bullish on the 4-hour chart. RSI has turned positive while the tenkan-sen and kijun-sen are now positively aligned. The market is above the Ichimoku cloud. The bias is to the upside, with the next target at the resistance level of 140.00 (50% Fibonacci) and then 140.89 (38.2% [..]

Technical Analysis – GBPUSD downside bias

Posted on June 3, 2014 at 6:40 am GMT

Daily technical indicators warn of downside risk for the GBPUSD pair. The tenkan-sen and kijun-sen are increasingly negatively aligned. The RSI has fallen below 50 into bearish territory and the MACD is declining. 1.6776 is acting as resistance while support lies at 1.6728 at the 23.6% Fibonacci retracement level of the upleg from 1.5852 (November 12 low) to 1.6995 (May 6 high). A move to the downside below 1.6728 would target support at 1.6657. A close below this would open [..]

Asian Session – US dollar upbeat following strong ISM manufacturing and higher yields

Posted on June 3, 2014 at 6:24 am GMT

The euro remained close to the 1.36 support level against the dollar at 1.3603 while the greenback managed to remain above the 102 level against the yen at 102.3. Risk sentiment was also helped by decent business survey numbers out of China, although the HSBC Manufacturing PMI was revised lower from its initial release but was still at its highest in four months at 49.4. The highlight of the previous day was the relatively strong ISM Manufacturing PMI out of [..]

European Session – Euro drifts lower on weak Eurozone PMI and speculation of ECB easing

Posted on June 2, 2014 at 1:26 pm GMT

The euro edged lower against the dollar and other major counterparts today as the market’s attention switched to this week’s European Central Bank policy meeting and expectations of more easing. The ECB has signaled recently that part of the policy options it could implement at its June 5 meeting includes cuts in interest rates. Most analysts expect a cut of 10 or 15 basis points to the ECB’s main refinancing rate, now at 0.25 percent and a lowering of the [..]

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