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Technical Analysis – GBPUSD bullish bias intact

Posted on May 2, 2014 at 9:46 am GMT

After range-trading between 1.6760 and 1.6850 for the past 2 weeks, GBPUSD finally broke out higher to reach 1.6917, a near 5-year high. The uptrend remains in place as the market continues to trade above the rising trendline from early April on the 4-hour chart. Also prices are above the positively aligned 20 and 50-period moving averages. A positive RSI and MACD adds to the bullish bias. Prices are currently consolidating just above 1.6872, as markets await for direction to [..]

Technical Analysis – EURUSD finds support at 1.3850

Posted on May 2, 2014 at 8:34 am GMT

EURUSD has found strong resistance at the 1.3880 level, falling back under it after rallying on Wednesday from a dip to 1.3700. The pair has found support at 1.3850, which is the 23.6% Fibonacci retracement level of the upleg from 1.3671 (April 4 low) to 1.3904 (April 11). The market is above the 20 and 50-period moving averages on the 4-hour chart. The RSI and MACD are still in positive territory so there is no sign of a bearish reversal [..]

Technical Analysis – Gold supported by 100-day MA

Posted on May 2, 2014 at 7:15 am GMT

Gold prices have fallen for the past 4 consecutive days and the negative RSI adds to bearishness. The stochastic is falling and has room to reach oversold levels. For now prices have found strong support from the 100-day moving average. The market is at a critical point as it lies just below the 50% Fibonacci retracement level of the upleg from December 31 low (1182.16) to the March 17 high (1392.07). Key US nonfarm payrolls data due later today will [..]

Asian Session – Majors little changed as they await nonfarm payrolls

Posted on May 2, 2014 at 6:45 am GMT

Most foreign currency majors were little changed during Asian trading this morning, as the market awaited the US employment report for April later in the day. Economists were expecting a strong reading for nonfarm payrolls, with payrolls created forecast to come in at their highest since November. According to Reuters, the median forecast was for 210 thousand net new jobs. The unemployment rate was set to dip to 6.6% from 6.7% the previous month. The economic reports and events from [..]

European Session – Sterling climbs to near 5-year high on UK Manufacturing PMI

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

The pound was one of the best performing currencies in holiday-thinned trading today. Many markets were closed for Labour Day. The UK Manufacturing PMI hit a 5-month high, meeting expectations for an improvement in activity from the previous month. The index gave a reading of 57.3, surpassing the 55.8 figure in March. Sterling rose to a near-5-year high of 1.6917 against the dollar after the data. Cable was last at 1.6885 at 12:00 GMT, up 0.07% in the London trade. [..]

Forex News – Sterling boosted after UK Manufacturing PMI hits 5-month high

Posted on May 1, 2014 at 10:13 am GMT

The British pound strengthened after the UK purchasing managers’ index (PMI) advanced higher in March to hit a five month high. The seasonally adjusted data collected by Markit/CIPS between 11-25 April showed the PMI printed a reading of 57.3, surpassing the 55.8 figure in March. Manufacturing production expanded at a robust pace as enterprises in the UK increased their new orders, both due to increased domestic as well as overseas demand. Factory production expanded at the fastest in four years [..]

Technical Analysis – EURJPY bullish bias strengthened by Ichimoku cloud support

Posted on May 1, 2014 at 9:21 am GMT

EURJPY continues to find support from the Ichimoku cloud on the daily chart. The upside bias remains as the pair continues to trade above the rising trendline from February 4 and the break above the Tenkan-Sen and Kijun-Sen yesterday provided a bullish signal. Prices are capped by the 23.6% Fibonacci retracement level of the upleg from February 4 (136.21) to March 7 (143.77). A potential upside move could retest the April 29 high of 142.46 and above this level prices [..]

Asian Session – Dollar holds losses as Fed reiterates low rates to remain

Posted on May 1, 2014 at 7:02 am GMT

Chinese official manufacturing PMI numbers released today came in lower-than-estimates, underscoring weakness in the world’s second largest economy. The PMI figure rose to 50.4 in April from 50.3 in March, below forecasts for a bigger increase to 50.5. In other news, the Federal Reserve concluded its monthly policy meeting yesterday by announcing a further cut of $10 billion to its bond buying program. The Fed reiterated that it will keep interest rates close to zero for a considerable time. The [..]

Forex News – Eurozone inflation slightly misses expectations; ECB unlikely to be moved

Posted on April 30, 2014 at 1:09 pm GMT

The April flash inflation estimate came in at 0.7% year-on-year on Wednesday, up from the previous month’s 0.5% final reading but slightly lower than the 0.8% economists were expecting. The relative rise in Eurozone inflation looked to be mainly the result of base effects. Energy prices were declining by a 1.2% annual pace in April compared to a 2.1% drop in March, whereas services inflation climbed to 1.6% compared to a more moderate 1.1% pace the previous month. Therefore it [..]

Technical Analysis – EURUSD bullish above 1.3780

Posted on April 30, 2014 at 12:31 pm GMT

EURUSD rebounded off support at 1.3780 to pierce through the cloud and rise back above it to test the 1.3850 resistance level. This is the 23.6% Fibonacci retracement level of the upleg from the February 3 low (1.3476) to the March 16 high (1.3966). There is room for further upside as the RSI moving back into bullish territory and the stochastic is leaving oversold levels. Resistance above 1.3850 is seen at 1.3880 and above this at 1.3904. Support below 1.3780 [..]

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