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Technical Analysis – Japan’s Nikkei at critical levels; looks to reverse uptrend

Posted on February 5, 2014 at 8:56 am GMT

[caption id="attachment_13093" align="alignnone" width="550"] (click to enlarge)[/caption] The Nikkei 225, the Japanese stock average, was one of the best performing stock markets in the world during 2013, rising in excess of 50%. The last trading day of 2013 also marked a 6-year closing high for the Nikkei 225 at 16,400 (on a front-month futures basis). The level also marks an important resistance point, which needs to be overcome to say that the uptrend is resuming. Since hitting this level, the [..]

Asian Session – Dollar eases against yen as focus turns to ADP jobs data

Posted on February 5, 2014 at 7:32 am GMT

The reluctance to take risks led to safe haven demand during the Asian session on Wednesday, helping buoy the yen as investors remain nervous about emerging markets. Also a string of key risk events happening in the next two days is keeping caution in the markets. Later in the day US private payrolls will be released by ADP and any disappointment will be taken negatively by investors. US ISM non-manufacturing data are also due today followed by the ECB on [..]

European Session – Sterling rebounds after UK construction PMI hits 6-1/2 year high

Posted on February 4, 2014 at 2:46 pm GMT

Most major currency pairs moved off lows reached after the dismal US ISM manufacturing data on Monday and became steadier going into Tuesday’s US session. There were moves higher by the euro and the pound during the European session based on some data releases, although the market focus will primarily be on the European Central Bank and Bank of England meetings on Thursday as well as on the US nonfarm payrolls report on Friday. The Eurozone Producer Price Index (PPI) [..]

Forex News – US January ISM Manufacturing PMI slides causing dollar to drop

Posted on February 4, 2014 at 1:18 pm GMT

[caption id="attachment_13080" align="alignnone" width="550"] (click to enlarge)[/caption] The release of the January ISM Manufacturing survey delivered a negative surprise both for risk assets and for the US dollar. Instead of backing off only slightly from December’s 56.5 figure, the index fell all the way to 51.3. Economists were expecting a drop to 56.0. The reading was the lowest since May of 2013, when the index fell to 50. The components of the survey also painted a negative picture. For example [..]

Technical Analysis – GBPJPY downside pressure

Posted on February 4, 2014 at 8:42 am GMT

GBPJPY on the daily chart is currently bearish and has retraced 61.8% of the up-leg from the November 5 low (156.61) to the January 2 high (174.74). The decline accelerated after the pair broke below an important support level at 167.80 (which is the 38.2% Fibonacci retracement level). Support is currently being provided by the 61.8% Fibonacci level and the 100-day moving average. RSI is falling and currently in bearish territory. A further price drop would bring the key psychological [..]

Asian Session – Aussie surges after RBA holds rates

Posted on February 4, 2014 at 7:41 am GMT

The Australian dollar was the main currency that stood out today after it surged by over 1% against the US dollar on the back of a more upbeat Reserve Bank of Australia policy statement. The RBA left its main interest rate on hold at a record low 2.5% and issued a less dovish statement that shifted from “a soft easing bias to a clearly neutral bias”. After initial weakness against the greenback, the aussie jumped to an Asian session high [..]

European Session – Euro remains below 1.35 after upbeat PMI as ECB comes into focus

Posted on February 3, 2014 at 2:33 pm GMT

The euro was briefly lifted above the key 1.3500 level following Eurozone PMI data today. The final figure for January came in at 54.0 versus a previous estimate of 53.9. Surprisingly better-than-expected readings from France and Germany acted as a catalyst of the move up to a session high of 1.3518, from a 2-month low of 1.3476. The euro was little changed against the dollar during the Europeans session, ending at 1.3494. The euro came back under pressure flat as [..]

Forex News – Busy week with ECB, Bank of England and US employment report

Posted on February 3, 2014 at 2:27 pm GMT

The week ahead is expected to be very busy, as many events will take place that are expected to have a significant impact on the foreign exchange market. By the end of the week, more will be known on the outlook for monetary policy in the Eurozone and the UK, on the outlook for manufacturing and services in the US and also on the employment situation in the world’s biggest economy. Following the previous week’s weaker-than-expected Eurozone flash inflation figures [..]

Technical Analysis – AUDUSD consolidates ahead of RBA policy meeting

Posted on February 3, 2014 at 9:53 am GMT

AUDUSD has been range- bound since reaching a more-than 3-year low of 0.8659 on January 24. The pair is consolidating ahead of a key risk event on Tuesday, when the Reserve Bank of Australia is expected to keep rates on hold. The reduction of easing expectations is keeping the pair supported above this 0.8659 level. Resistance at 0.8825 is keeping the pair capped for now. The daily chart shows a bearish bias as prices headed lower since the October 23 [..]

Asian Session – Euro weak ahead of PMIs

Posted on February 3, 2014 at 7:57 am GMT

Last week’s risk-off tone filtered through to the start of the new trading week while caution is also keeping markets subdued ahead of a risk-filled week. The Bank of England and European Central Bank both hold policy meetings on Thursday. Meanwhile, the Reserve Bank of Australia is also having a policy meeting on Tuesday. One of the most important events this week will be Friday’s US nonfarm payrolls, which could cause much volatility in the markets. Chinese markets were still [..]

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