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European Session – Dollar rises after strong US retail sales

Posted on April 14, 2014 at 1:42 pm GMT

The euro extended losses against the dollar as the European session came around, following through from the Asian session decline when markets reacted negatively to ECB President Mario Draghi’s dovish comments over the weekend. Draghi as well as other ECB policy members talked down the euro by implying that a stronger euro exchange rate would trigger the ECB to take action, probably in the form of QE (quantitative easing). Also weighing on the euro was news of renewed tension between [..]

Technical Analysis – GBPUSD looking bearish

Posted on April 14, 2014 at 9:28 am GMT

GBPUSD is looking bearish below 1.6760 on the 4-hour chart. The pair has retraced 38.2% (1.6722) of the recent bull run from April 7 (1.6564) to April 10 (1.6819). Resistance at 1.6760 is important as it is where the 20-period moving average lies and is the 23.6% Fibonacci retracement level. A decisive break above this would see a retest of the April 10 high at 1.6819. A further move higher would target 1.6840. To the downside, the pair would find [..]

Technical Analysis – AUDUSD steady along key 0.9400 level

Posted on April 14, 2014 at 8:46 am GMT

AUDUSD is pivoting along the key 0.9400 level and supported by its 20-period moving average on the 4-hour chart. The pair retreated from a 4-month high of 0.9460 hit on April 10 but remains bullish above 0.9350. The 20, 50 and 100-period moving averages are all positively aligned and RSI remains above 50 although has flattened out. MACD is still in bullish territory. To the downside, support is found at 0.9360 and 0.9320. A decisive break above 0.9400 would open [..]

Technical Analysis – EURJPY neutral

Posted on April 14, 2014 at 7:35 am GMT

EURJPY gapped down in Monday’s open to trade below the key psychological level of 141.00. The pair is currently hovering at the 78.6% Fibonacci level (140.68) of the recent bull run from March 28 (139.95) to April 2 (143.46). Technical indicators are mixed and do not give any clear direction at the moment. The uptrend line from February is providing support for now. Momentum has diminished and the RSI is resting just below 50, while the MACD is still above [..]

Asian Session – Euro retreats on Draghi comments, but other majors hold ground

Posted on April 14, 2014 at 6:23 am GMT

The euro gave up some ground while other majors were mostly stable during Asian trading on Monday morning. The euro backed off from its attempt to overcome the 1.39 level against the dollar as it dropped to 1.3850 right after the opening of markets on Monday. The reason was verbal intervention by the European Central Bank as its President Mario Draghi said that – quote- “a further strengthening of the exchange rate would require further monetary stimulus”. This point was [..]

European Session – Euro retreats from 1.39, dollar rebounds after PPI data

Posted on April 11, 2014 at 1:41 pm GMT

The euro failed to sustain the 1.3900 level against the dollar and fell 0.13% to trade at 1.3872 as the recent dollar selloff eased. German CPI data came in as expected and gave no reason to support the euro. The relatively low inflation rate (0.3% on the month) was a reminder of the risks of low inflation in the Eurozone. If the ECB eventually starts to take action (say through QE) in the coming months, then this will weaken the [..]

Forex News – Busy week ahead with Chinese GDP, US retail sales, Yellen speeches and UK unemployment

Posted on April 11, 2014 at 11:47 am GMT

Next week will be relatively busy in terms of economic data and central bank events and this should help create a lively trading environment. The week’s most important number will be released on Wednesday; Chinese GDP growth for the first quarter. China is one of the first countries that announce its GDP figures so soon after the end of the quarter and the numbers will be closely scrutinized for signs of a slowdown. Economists of course do expect a slowdown [..]

Technical Analysis – USDJPY rebounds off 101.32

Posted on April 11, 2014 at 8:51 am GMT

USDJPY paused its decline and found support at 101.32. Looking at the hourly chart, the pair consolidated above this support level and rose back above 101.50 and above the kijun-sen and tenkan-sen lines, thereby bringing back a bullish scenario. RSI is positive and above 50 in bullish territory. There is scope to target the key level at 102.00 and then 102.40. Strong support remains at 101.32 and below this at 101.00 and then 100.70. Overall, USDJPY remains bullish above 101.50 [..]

Technical Analysis – EURUSD rises for fourth day to 1.39

Posted on April 11, 2014 at 7:46 am GMT

EURUSD maintains its bullish momentum after having risen for a fourth day. On the daily chart, the pair is trading above a rising trendline from November and remains above the 20, 50 and 100-day moving averages which are all positively aligned. The daily RSI is positive and has crossed above 50 which is a bullish sign. However, the stochastic is in overbought territory which could warn of a potential correction in the medium term. In early European session trading on [..]

Asian session – yen supported by falling stock markets; euro attempts to break 1.39 against dollar

Posted on April 11, 2014 at 6:35 am GMT

The yen was well supported during Friday’s trading as risk aversion took hold. The euro also remained strong versus the dollar, although it was having trouble breaking above 1.39. A sizeable drop in US equities overnight led to selling in the Japanese stock market, with the benchmark Nikkei 225 falling below the 14000 level. This caused the dollar to retreat against the yen, making a 4-week low at 101.31. The dollar later recovered to around 101.60. The catalyst for the [..]

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