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Technical Analysis – AUDUSD 4-hourly: Near December’s 3-year low – are fresh lows ahead?

Posted on January 8, 2014 at 10:31 am GMT

[caption id="attachment_12379" align="alignnone" width="550"] (click to enlarge)[/caption] The Australian dollar was one of the weakest currencies of 2013, dropping 14.2% against its US counterpart. Worries of overvaluation, verbal intervention by the Reserve Bank of Australia to drive the aussie lower and some growth scares out of China, all contributed to push the currency down despite robust economic growth down under. The ausssie made a fresh 3-year low on December 18 at 0.8819. This also represents the pair’s immediate support level, [..]

Asian Session – Risk on sentiment hurts yen as stocks gain

Posted on January 8, 2014 at 7:46 am GMT

Stronger risk sentiment drove the yen lower during Asian trading, as the Nikkei rose on the back of strong gains on Wall Street the previous day. The dollar gained 0.30% against the yen to trade at 104.91. The euro was also stronger against the yen as the euro made back some of its recent losses, gaining 0.39% to trade at 142.97. The euro was down 1.40% against the yen so far in the New Year. The yen has been strong [..]

European Session – Euro rallies to 2-½ month high versus Swiss Franc

Posted on January 7, 2014 at 2:52 pm GMT

The main theme of the European session was euro strength, despite some soft Euro zone inflation data today. The euro has made a big recovery since Monday’s 1-month low against the dollar and it rose to a 2-1/2-month high against the Swiss Franc today. The Eurozone headline inflation rate dipped to 0.8% in December from 0.9% in November and was in line with expectations. The figure though was not deemed to be enough to prompt a change in the European [..]

Forex News – Eurozone inflation dips in December, remains below ECB target

Posted on January 7, 2014 at 12:49 pm GMT

Inflation in the Eurozone dipped in December, despite various measures taken by the European Central Bank to stimulate growth in the economy, raising some concerns about deflation in the region. According to data released by Eurostat, CPI fell to 0.8% in December from 0.9% in November. This headline inflation rate was in line with expectations but it should be noted that today’s number is a preliminary estimate and the final reading will be released on January 16. Contributing to the [..]

Technical Analysis – GBPUSD intra-day short-term bearish

Posted on January 7, 2014 at 10:03 am GMT

Cable has been bearish since falling from a 2-year high on a Jan 2nd. Sterling is experiencing a natural correction after a sharp rally against the dollar from November last year. GBPUSD has since retraced as far as 38.2% of the down leg from the January 2nd high to the Jan 6th low and is currently just below the 23.6% Fibonacci retracement level of this move. The pair is trading below the key 1.64 level today despite a brief bounce [..]

Asian Session – Dollar bounces back after soft ISM, Yellen vote passes

Posted on January 7, 2014 at 8:14 am GMT

The US dollar bounced back against the yen to recover losses made after disappointing US PMI data. On Monday, two reports showing service sector activity showed a slowdown in December. The more important ISM non-manufacturing PMI surprisingly declined in December to 53.0 despite forecasts for an increase to 54.5. The previous reading was at 53.9. Meanwhile a separate report from Markit showed the final services PMI reading for December fell slightly to 55.7 from 56.0. In other news, late on [..]

European Session – Euro rebounds on services PMI data

Posted on January 6, 2014 at 2:34 pm GMT

The currency markets were dominated by risk aversion today as several key risk events are scheduled for this week – the Fed meeting minutes on Wednesday, European Central Bank and Bank of England policy meetings on Thursday and the all-important US nonfarm payrolls on Friday. As a result, the yen as broadly stronger today due to safe haven demand flows, especially against the dollar and the euro. There was some relief for the euro during the European session though. Better [..]

Technical Analysis – EURJPY under pressure

Posted on January 6, 2014 at 11:49 am GMT

EURJPY extended lower early in Monday‘s Asian session, to reach a 2-week low of 141.48, due to a broadly stronger yen. The decline has stalled and the pair is hovering around 142.25, which is the 23.6% Fibonacci retracement level of the move from the November 7 low of 131.18 to the December 27 high of 145.65. The short-term technicals suggest bearishness in the pair. On the 4-hour chart the RSI has dipped sharply below 50 into bearish territory. The stochastic [..]

Forex News – Week ahead – US nonfarm payrolls will be key driver for dollar, ECB and BoE in focus

Posted on January 6, 2014 at 10:43 am GMT

It will be a busy week as the first full trading week of 2014 kicks off with several key risk events. Monday began with releases of Euro zone services PMI data. The Markit services PMI final reading for December was unchanged at 51.0 and in line with expectations while the composite PMI was also unchanged at 52.1. On a country-by-country basis, German, French and Spanish PMI all rose, except Italian PMI, which unexpectedly fell. On Tuesday, the major event of the [..]

Asian Session – Yen extends gains after soft China services PMI data

Posted on January 6, 2014 at 8:04 am GMT

The yen extended gains against the dollar and the euro, while the Nikkei fell over 2% as Tokyo markets began their first trading day in 2014 after an extended holiday. Market sentiment was damp today after data released from China showed that service sector activity slowed to the weakest level in 2 years, fuelling concerns over the growth prospects in the world’s second largest economy. The HSBC/Market PMI for China’s service sectors fell in December to 50.9, the weakest since [..]

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