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Technical Analysis –EURJPY consolidating at 5-year highs

Posted on December 24, 2013 at 11:39 am GMT

EURJPY has been in an uptrend since November 8, hitting a 5-year high of 142.88 on December 18. On the daily chart, the 10-day moving average has crossed above the 20-day moving average which is a bullish signal and a good indication that the longer-term trend is intact. EURJPY has approached key resistance at its 5-year high (142.88) and as a result has been consolidating for the past 2 weeks, finding support at 140.90. Above the current 5-year high, 143.50 [..]

Asian Session – Dollar climbs back above 104 against yen

Posted on December 24, 2013 at 8:59 am GMT

The Asian session was relatively quiet as trading volumes are thin before the Christmas holiday and many investors are locking in profits before the year-end. News flow was light except for a monthly report from the Bank of Japan which was fairly upbeat. Overall market sentiment was risk-on today, following from encouraging US data yesterday which underpins the Fed’s view that the US economy is improving. Last week the Fed announced it will begin trimming its bond buying program. This [..]

Forex News – Improving US economy underpins Fed taper

Posted on December 23, 2013 at 5:28 pm GMT

Markets are focused on US data following the Federal Reserve’s announcement on December 18 to scale back its stimulus program. Since Federal Reserve Chairman Ben Bernanke first mentioned earlier this year that tapering was data-dependent, much of the dollar’s recent strength especially against the yen has been driven by improving US data. Last Friday, GDP data showed the US economy expanded at the fastest pace in two years in the third quarter. The revised figures showed a 4.1% growth at [..]

European Session – Euro bounces to 1.37

Posted on December 23, 2013 at 2:53 pm GMT

Major currency pairs were mostly range-bound in low volume trading as investors were positioning ahead of the holiday period and the year-end. There were no market-moving news releases today so market participants were still digesting the news of the Fed tapering and the strong US GDP numbers from last week. This kept risk sentiment up today but currency pair direction was mostly driven by profit-taking, which kept the US dollar under some pressure. From Europe, there were no tier-one data [..]

Technical Analysis – EURUSD consolidates

Posted on December 23, 2013 at 10:16 am GMT

Weakness in EURUSD remains at the start of the new trading week after the pair’s sharp drop following last week’s Fed taper announcement. Despite a short rally on Friday that led to the EURUSD briefly reaching the 1.37 handle, the pair has remained capped below this key level. On the 4-hour chart there is consolidation just below the 23.6% Fibonacci level (of the move from the November 7 low to the December 11 high) now acting as strong resistance at [..]

Asian Session – Dollar stalls after Fed-induced rally in quite Asian session

Posted on December 23, 2013 at 8:37 am GMT

The US dollar gave back some of its Fed-induced gains during a relatively quiet Asian session on Monday. Markets in Tokyo were closed for a holiday and the upcoming Christmas holidays led to light volumes and little interest from investors to take on fresh positions. Currency markets were still mostly focused on last week’s Fed announcement that it will begin tapering its $85 billion-a-month bond purchase program to $75-billion-a-month. The dollar has since eased lower on profit-taking after hitting five-year [..]

European Session – euro recovers in slow market

Posted on December 20, 2013 at 1:07 pm GMT

The euro was stronger by 0.11% against the dollar, to trade at 1.3645, rebounding slightly after recent losses. The dollar continued to trade very near its highs against the Japanese yen, gaining a slight 0.06% to trade at 104.46. It was a relatively busy session in terms of economic statistics releases, but these were mostly second-tier indicators which did not have the significance to move the market by much. The GfK consumer sentiment for Germany for January was slightly higher-than-expected [..]

Technical Analysis: GBPUSD hourly: range trading near 2-year high from sterling

Posted on December 20, 2013 at 11:02 am GMT

[caption id="attachment_12203" align="alignnone" width="550"] (Click to enlarge)[/caption] Both the pound and the dollar have seen positive fundamental developments during the past few trading sessions. As a result the recent fresh 2 – year high registered by the pound against the dollar did not result in follow-through buying and the pair remained roughly in a trading range pattern. The high of the previous 8 days was around the 1.6433, whereas the low was at 1.6217. The high could act as resistance [..]

Asian Session – Dollar continues to climb following Fed stimulus tapering

Posted on December 20, 2013 at 8:29 am GMT

The dollar continued to post gains after the Fed’s decision to taper its monthly bond-buying, although the gains were contained as trading appeared to be winding down ahead of the Christmas and New Year holidays. The euro fell 0.23% against the dollar to trade at 1.363, after rating agency S&P downgraded the European Union institutions from triple A (AAA) to double A minus (AA-). The agency cited rising tensions in budget negotiations and the rising probability that some member-states may [..]

European Session – Dollar up on post-Fed economic optimism

Posted on December 19, 2013 at 1:54 pm GMT

The dollar rose against most major currencies, as optimism about the prospects of the US economy and a rally in US risk assets made the greenback attractive. The dollar gained 0.11% against the euro to trade at 1.3661. The market was still trying to digest the ramifications of the previous day’s move by the Fed as some analysts went as far as to state that the forward guidance was akin to additional stimulus, whereas others stated that tapering was tightening. [..]

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