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Technical Analysis – AUDUSD steady above 0.9200

Posted on May 6, 2014 at 7:23 am GMT

For the past 2 weeks, AUDUSD has been gyrating the 23.6% Fibonacci retracement level (0.9271) of the upleg from January 24 (0.8659) to April 10 (0.9460). Technical indicators are mixed and are not showing a clear direction at the moment on the daily time frame. The RSI is flat on the 50 level. The 50-day moving average has crossed above the 200-day moving average, which is usually a bullish signal. The market is above the Ichimoku cloud, which is also [..]

Asian Session – Reserve Bank of Australia holds rates, aussie gains

Posted on May 6, 2014 at 6:34 am GMT

Today was another day off for Tokyo and this resulted in tight ranges for FX majors. Dollar / yen dropped back slightly to 102.03 – but remained above 102, while the euro was stable at the relatively high level of 1.3880. The excitement was mainly provided by the Australian dollar and the Reserve Bank of Australia’s announcement about interest rates and the economy. The RBA – as expected – kept interest rates unchanged at a record low of 2.50% as [..]

European Session – Yen outperforms in quiet London session

Posted on May 5, 2014 at 1:54 pm GMT

The May Day holiday in London and the Golden Week holiday in Tokyo kept currency markets relatively quiet in low volumes. There was a general risk-off tone due to the tensions in Ukraine, which meant the safe haven yen was stronger today. Also data earlier in the day from China that indicated a slowing economy kept risk appetite soft. The euro traded in a range against the dollar for most of the European session before ending up 0.09% to trade [..]

Forex News – Chinese manufacturing survey index remains underwater in April

Posted on May 5, 2014 at 12:46 pm GMT

The news that China’s final April HSBC PMI index dipped to 48.1 compared to 48.3 announced initially, was interpreted as a slightly negative development for risk assets and the global economy. It was the fourth consecutive month during which the index was below 50, which is the expansion-contraction dividing point. However, despite the downward revision of the index, it was up marginally from March’s 48.0 reading. It appears the deterioration in operating conditions observed during April had to do with [..]

Technical Analysis – GBPUSD corrects upside move

Posted on May 5, 2014 at 12:03 pm GMT

GBPUSD hit a new multi-year high of 1.6917 on Thursday and has corrected slightly lower to the 38.2% retracement level of the upleg from April 24 (1.6764) to May 1 (1.6917). This level is at 1.6860, which is also where prices found support at the Tenkan-Sen line on the 4-hour chart. The market is above the Ichimoku cloud which is a bullish signal. The RSI is positive above 50 but inclining downwards so there is scope for a correction lower [..]

Technical Analysis – USDJPY turned bearish below Ichimoku Cloud

Posted on May 5, 2014 at 8:52 am GMT

USDJPY has turned bearish after dipping below the Ichimoku Cloud base on the 4-hour chart and is testing the key 102.00 level. The RSI has turned negative below 50 signaling the potential for further downside. Support is seen at 101.70 and 101.31. While the upside is capped at the 102.00 barrier, any move higher would target the 102.30 resistance level provided by the cloud base. Above this, a successful penetration above the cloud would lead to 102.56 and 102.77 before [..]

Technical Analysis – EURUSD bullish bias remains

Posted on May 5, 2014 at 7:16 am GMT

EURUSD has been testing the key 1.3880 level in recent days, while the bullish bias remains since the pair trades above the Ichimoku cloud on the daily chart. RSI and MACD are positive, signaling the potential for further upside. A daily close above the key barrier at 1.3880 will open the way for prices to target 1.3904, which is the April 11 high. Should prices breach 1.3906 resistance, the next target comes in at 1.3966 (March 16 high). To the [..]

Asian Session – Yen gains on weaker-than-expected Chinese manufacturing survey, Kuroda comments

Posted on May 5, 2014 at 6:38 am GMT

The yen managed to drive the US dollar under the 102 level to trade around 101.95- near a 2-week low, as an indicator of Chinese manufacturing health remained in contraction territory. The final HSBC Manufacturing PMI for April came in at 48.1 compared to 48.3 which was the flash estimate. When the indicator is below 50, it is a signal that manufacturing is contracting. The specific survey has been below 50 for four months now and it shows that Chinese [..]

European Session – Dollar surges after nonfarm payrolls big surprise to the upside

Posted on May 2, 2014 at 1:58 pm GMT

After a quiet start to the day, there was more currency movement following the strong US employment data. The main data out of the Eurozone was on manufacturing PMI and jobs, both of which were encouraging. Manufacturing PMI in the Euro-area beat forecasts to rise to 53.4 versus a previous 53.3. The unemployment rate was lower-than-forecast at 11.8% versus 11.9% but in line with the downwardly revised previous number. While the numbers for both the PMI and unemployment were in [..]

Forex News – Week ahead: Central bank meetings and business surveys likely to dominate agenda

Posted on May 2, 2014 at 11:39 am GMT

The highlight of the week will be the European Central Bank’s Governing Council meeting on Thursday and ECB chief Mario Draghi’s press conference after the decision. The ECB is not expected to provide any fresh monetary stimulus in the form of rate cuts, asset purchases or additional liquidity. However, Draghi could clarify what the bank’s future options are, how the bank views the level of the euro and what the progress is for the Asset Quality Review (AQR or bank [..]

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