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Technical Analysis – EURUSD bearish

Posted on October 10, 2013 at 8:31 am GMT

EURUSD is bearish and back in a downtrend after breaking below its short-term uptrend line and fell below the 50-period moving average on the 4H time frame. Price action is currently along the lower Bollinger Band at around 1.3514. . RSI is falling towards 30 which is bearish territory. Next support level is at 1.3460 which is the Sept. 25 low. A break below this support will confirm the bearish bias and open the way to next target at 1.3325, [..]

Asian Session – US dollar extends gains for a third day

Posted on October 10, 2013 at 6:35 am GMT

The US dollar extended gains against the yen, rising for the third day as market sentiment has improved for the currency. Investors are optimistic that a deal will be reached in the US Congress to avoid a default by the government when the debt ceiling is reached on October 17. The nomination of Janet Yellen as new Fed Chief yesterday was also cheered by the markets. In Asian markets, the Nikkei stock index rose, causing the Japanese yen to fall, [..]

US Session – US Dollar spikes after Fed minutes

Posted on October 9, 2013 at 7:54 pm GMT

The US dollar spiked higher against the yen after the FOMC minutes released late in the US session on Wednesday. The minutes were of the last Federal Reserve policy meeting of September 17-18 and showed that most Fed policy makers said that tapering is possible before the end of this year. A reduction of the Fed’s current $85 billion a month of bond purchases would be positive for the dollar. USDJPY jumped after the minutes to 97.63 from 97.34 yen. [..]

Forex News – Sterling falls after UK manufacturing numbers unexpectedly drop

Posted on October 9, 2013 at 12:47 pm GMT

Sterling weakened on Wednesday after disappointing UK manufacturing production data, which raised concerns about the health of the economic recovery in the nation. According to a report released by the Office for National Statistics, the August figure was less than forecast since production fell from July. Manufacturing Production dropped by a seasonally adjusted 1.2 percent in August, despite expectations for a 0.4 percent increase. In July production rose by 0.7 percent. Meanwhile, on an annualized basis, manufacturing production declined at [..]

European Session – Dollar strength on Yellen, sterling down on industrial production

Posted on October 9, 2013 at 12:37 pm GMT

The overnight news that President Obama would nominate Janet Yellen to head the Federal Reserve dominated trading, pushing the dollar higher and leading to a rebound in stocks after the previous day’s sharp losses. According to analysts, although Yellen is a known dove which should in theory hurt the dollar, the fact she was the person to be nominated as Fed chief removed one source of uncertainty regarding US assets. Others questioned whether the dollar rebound would continue in the [..]

Technical Analysis – EURUSD reversal pattern

Posted on October 9, 2013 at 8:09 am GMT

EURUSD downside bias is strong. A bearish reversal pattern (double tops) was completed today and the pair broke below key support at $1.3563. Next support is being held at 1.3520. 1H chart: Indicators are bearish – RSI fell to 30 and Stochastic is below its signal, currently below 10. Price action is below the Ichimoku cloud, which also indicates bearishness. A daily close below 1.3540 will confirm that EURUSD has topped and will strengthen the bearish bias. A break above [..]

Asian Session – Yellen’s nomination as Fed Chair boosts US dollar

Posted on October 9, 2013 at 6:31 am GMT

The dollar rebounded against the yen early on Wednesday as Asian markets reacted to news that a new Federal Reserve Chief will be nominated. Janet Yellen who is the current Vice President of the Fed will be a front runner to replace Ben Bernanke when he leaves in January. Yellen’s nomination will be announced by US President Obama at the White House later today. The news has given some relief to markets and gave investors a temporary break from concerns [..]

US Session – Canadian dollar tumbles as US shutdown weighs

Posted on October 8, 2013 at 8:30 pm GMT

Uncertainty about the US government shutdown and more importantly the looming debt ceiling, remains high and should continue to weigh on the dollar against majors like the euro and pound, as well as against safe havens like yen and Swiss franc. Today US President Obama gave a press conference from the White House, and called on Republicans to vote to reopen the federal government and increase the nation’s borrowing limit, saying failure to act would create the “significant risk of [..]

European Session – Sterling bounces higher on UK data, AUD surges

Posted on October 8, 2013 at 12:57 pm GMT

Currency markets are not heading anywhere during the US government shutdown. Major G10 currency pairs continue to hover in familiar ranges though, with USD weakness prevailing. Investors are being cautious over the shutdown and the potential risks associated with the debt ceiling, as the October 17th deadline approaches. For now markets appear to be complacent and expect some sort of resolution to be reached, which is helping keep currencies within a somewhat steady range. EURUSD is down 0.1 percent today, [..]

Forex News – As US government shutdown enters 8th day what is drama and what is reality?

Posted on October 8, 2013 at 12:22 pm GMT

The failure of the United States Congress to pass a funding bill for the new fiscal year (year-end is 30 September) resulted in a partial shutdown of the US government meaning that various federal government functions were scaled down or closed and 800.000 non-essential, non-emergency government workers were sent home without pay. The shutdown is largely the result of the deepening polarization in Congress between Democrats and Republicans as well as the ascendancy of the Tea Party movement within the [..]

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