News / Page 68

Technical Analysis – GBPUSD strengthens bearish outlook after break below 1.29

Posted on August 16, 2016 at 5:12 am GMT

GBPUSD broke below a major support level of 1.2900 on Monday and had a daily close below it for the first time since July 7. This level will now act as immediate resistance. A move back above 1.2900 would extend the short term consolidation pattern (since early July). Downside pressure still remains as the RSI is trending down and is in bearish territory below 50. There is scope to retest the 31-year low of 1.2794 that was hit on July [..]

European Session – Dollar tumbles against yen on soft US retail sales data; oil set to end week higher

Posted on August 12, 2016 at 2:40 pm GMT

Major currency pairs were mostly consolidating the previous day’s moves in the early part of today’s European session until the release of US data which resulted in some substantial moves. The dollar was overall underperforming all week and the release of disappointing US retail sales figures today added to its losses especially against the yen. The highlight of the day was the US retail sales data which was unexpectedly unchanged in July. A 0.4% m/m increase was forecast. Meanwhile, June’s figure was upwardly revised to show [..]

Week Ahead – UK post-Brexit data to be closely monitored; dollar to tune into Fed minutes

Posted on August 12, 2016 at 1:31 pm GMT

The British pound will likely experience some movement next week, as one of the first major batches of post-Brexit economic data will be released. Elsewhere, the US inflation report, some Fed speakers and the Fed meeting minutes and Japanese GDP growth for the second quarter, will all be closely watched by market participants. The week will get off to a slow start, with the first important indicator coming out of Japan on Monday in the form of GDP for the [..]

Asian Session – Dollar extends rally driven by Fed’s Williams support for rate hikes; oil higher on Saudi oil Minister’s comments

Posted on August 12, 2016 at 8:44 am GMT

The US dollar extended gains versus the yen in Asian trading on Friday after being lifted late on Thursday by comments from San Francisco Fed President John Williams. The US central bank official said in an interview with the Washington Post that he supported the view that there should be more Fed rate hikes this year as labour market conditions improve in the US economy and inflation is likely heading higher. The dollar reacted positively to the expectation of another [..]

Technical Analysis – USDJPY neutral short term; long term downtrend stalls above 100

Posted on August 12, 2016 at 7:32 am GMT

USDJPY has a neutral bias in the short term, with a range between 100.60 and 102.80. In the bigger picture, there is a long term downtrend that started from early this year when prices fell from 121.68 to reach a low of 98.96 in June. A break below the key psychological level of 100.00 would see the market resume this downtrend. Prices would need to clear the June high of 107.48 and target major resistance at 111.00 in order to [..]

European Session – Sterling dips to 1-month low; oil rallies on softer dollar

Posted on August 11, 2016 at 3:15 pm GMT

Currency markets were relatively subdued during the European session due to a lack of key economic data and also due to light trading during the summer holidays. Consequently, there was no clear direction in the markets today. The euro started off the session on a soft note against the dollar, falling to a low of $1.1136 before bouncing back up to beat the early session highs. The pair reached a high of $1.1173 as the greenback reversed earlier strength. Despite [..]

Technical Analysis – Germany 30 Cash Index looking bullish at 2016 high

Posted on August 11, 2016 at 3:02 pm GMT

The Germany 30 cash index hit the highest level since December 2015 today as it extended its post-Brexit gains. The rally has taken prices above the 50- and 200-day moving averages and above the Ichimoku cloud. The tenkan-sen and kijun-sen lines are positively aligned and rising, and the positive momentum is further supported by the RSI holding close to the 70 level. Today’s intra-day peak of 10740.30 is the nearest resistance should prices attempt fresh yearly highs. Further gains could [..]

RBNZ cuts rates to record low but kiwi jumps to 15-month high

Posted on August 11, 2016 at 12:01 pm GMT

The Reserve Bank of New Zealand cut its official cash rate by 0.25% to a record low of 2.0% at its policy meeting earlier today as it attempts to fend off disinflation. Declining price pressures prompted the RBNZ to cut rates for the second time this year as annual inflation in New Zealand remains stuck near 0%. Expectations of a rate cut had been largely priced in by the markets after the central bank made an unscheduled economic update on [..]

Asian Session – Kiwi rallies after RBNZ disappoints with size of rate cut

Posted on August 11, 2016 at 8:22 am GMT

The New Zealand dollar extended its rally today as the expected rate cut by the Reserve Bank of New Zealand failed to halt the kiwi bulls. The RBNZ announced a 25bps reduction in its official cash rate to 2.0% earlier today, the second cut this year. In his statement, the Governor Graeme Wheeler said “further policy easing will be required” to ensure that inflation rises to the target range, warning that a sustained weakness in headline inflation risks dragging down [..]

Technical Analysis – NZDUSD capped at 0.73, neutral bias remains in medium term

Posted on August 11, 2016 at 7:26 am GMT

NZDUSD was on an upward trajectory from the January low of 0.6346 to the 0.7300 area in June where the upside momentum stalled. The pair will likely find strong resistance around 0.7300 and it remains to be seen whether the market can make a daily close above this key level. NZDUSD is trading sideways with major support at 0.6950 and prices capped just above 0.7300, keeping the medium term bias neutral. Only a daily close above today’s peak of 0.7338 [..]

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