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European Session – Dollar rebounds after US jobless claims fall to 7-year low

Posted on April 10, 2014 at 1:45 pm GMT

The dollar remained bearish today after coming under heavy selling from the dovish FOMC minutes on Wednesday that showed the Fed was to remain accommodative for longer-than-previously thought. An upbeat US jobless claims report today helped the dollar trim some losses. The number of Americans filing for unemployment benefits last week fell to the lowest level in seven years, decreasing by 32,000 to 300,000. This was less than the expected 320,000 claims. The dollar was hovering at three-week lows of [..]

Forex News – Fed minutes cause dollar selloff because of dovish content

Posted on April 10, 2014 at 1:12 pm GMT

The release of the minutes from the March 19 meeting of the Federal Open Market Committee (FOMC) – the body responsible for setting monetary policy in the US – showed that members were keen to downplay fears of higher interest rates in coming years. This was contrary to the message the market got right after Janet Yellen’s press conference, in which she said that a reasonable time period between the completion of the tapering process and the first rate hike [..]

Technical Analysis – AUDUSD bullish in rising channel

Posted on April 10, 2014 at 9:49 am GMT

AUDUSD is strongly bullish and hit a fresh 4-month high of 0.9460 today. Prices have been rising within the channel since April 7 and trading above the 20 and 50-hour moving averages. Strong bullish momentum gives the pair scope to target 0.9541 (November 6 high). The hourly RSI and stochastic are both approaching overbought territory which could lead to a correction in the market. A downside move will target support at 0.9398. A decisive break below this will lead to [..]

Technical Analysis – USDJPY bearish below Ichimoku cloud

Posted on April 10, 2014 at 9:09 am GMT

USDJPY is bearish on the hourly chart and remains below the Ichimoku cloud. The market is below the kijun-sen and tenkan-sen which are negatively aligned. RSI is in bearish territory below 50. The pair faces resistance at 101.12 (a level tested in the past 2 days). Above this barriers lie at 102.29 and 102.46 (top of the Ichimoku cloud). A decisive break below 101.54 (April 8 low) will lead to a further decline towards support at 101.19. Overall, USDJPY remains [..]

Technical Analysis – EURUSD bullish trend prevails

Posted on April 10, 2014 at 8:36 am GMT

EURUSD is bullish on the hourly chart and remains above the rising trendline from April 4. The pair has regained the 1.38 handle and hit a 2-week high of 1.3870 by early Thursday. There is room for further upside since the RSI and stochastic are not yet overbought. The 20-and 50-hour moving averages are positively aligned. A break above the resistance area of 1.3870/75 would target 1.3890 and 1.3925. To the downside, prices would find support at the key psychological [..]

Technical Analysis – Gold hits 2-week high

Posted on April 10, 2014 at 7:22 am GMT

Gold rose for a third day to reach a new 2-week high of 1318.74. After retracing about 50% of the rally from 1182.16 (December 31 low) to 1392.07 (March 17), the market bounced to the 38.2% Fibonacci level. The outlook for gold is bullish since the market is above the 100 and 200-day moving averages. The 50-day moving average crossed above the other two averages, which is a bullish signal. RSI has risen above 50. However, the market is likely [..]

Asian Session – US dollar stays low post Fed minutes, Chinese exports slow

Posted on April 10, 2014 at 6:26 am GMT

After a relatively slow start to the week, action picked up overnight as the Fed’s minutes were less hawkish than expected and Chinese exports failed to rebound after a New Year-related drop in February. The dollar index fell to a 3-week low after the release of the minutes of the latest Federal Reserve meeting on March 19, which showed that members of the committee were concerned that the Fed’s interest rate forecasts were too aggressive and that they might scare [..]

Forex News – QE and the euro: will the ECB decide to print and buy assets?

Posted on April 9, 2014 at 2:05 pm GMT

Perhaps the highlight of the previous week’s European Central Bank meeting and subsequent press conference by its President Mario Draghi was the news that the ECB council openly discussed the possibility of Quantitative Easing and it was unanimously agreed that QE or asset purchases was a tool that was available. The subject of QE had been one of contention and intense debate in previous years as the Bundesbank, the German central bank, was against such a tool to stimulate the [..]

European Session – Quiet trading ahead of FOMC minutes

Posted on April 9, 2014 at 1:22 pm GMT

All eyes are on the FOMC minutes later today to see if there will be any more clues on the Federal Reserve’s monetary policy. The minutes are from the March meeting when the Fed reduced its monthly bond purchases by $10 billion a month to a total of $55 billion a month. During the European session today most currency pairs were flat. The economic calendar was light, with just trade balance data from both the UK and Germany, which had [..]

Technical Analysis – GBPUSD bullish but prone to correction

Posted on April 9, 2014 at 9:18 am GMT

GBPUSD is bullish on the hourly chart. The pair rallied strongly from 1.6611 to reach a high of 1.6753 on April 8th. The pair has since been consolidating in a tight range below this high. A break above the range-high of 1.6753 will target 1.6784 (March 7 high) and then 1.6821 (February 17 high). A short term correction is possible and bullish momentum may come under pressure as RSI is dropping and prices have fallen below the 20-hour moving average. [..]

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