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Technical Analysis – NZDUSD stages strong rally to 1-year high

Posted on June 9, 2016 at 7:14 am GMT

NZDUSD staged a strong rally early on Thursday to reach a one-year high of 0.7146. The pair turned more bullish after clearing some important barriers. There was a daily close above the key 0.70 level on Wednesday. Prices also cleared the April 19 high of 0.7053 and the 0.7100 level. There is scope to target the next key level at 0.7200. The daily RSI is trending up but is entering overbought territory, which suggests that there could be some consolidation [..]

European Session – Euro tests 1.14 as dollar stuck at one-month lows; Oil extends gains

Posted on June 8, 2016 at 2:48 pm GMT

The euro climbed to a 4-week high of 1.1410 dollars in European trading on Wednesday as the dollar continued to be weighed by receding expectations of a near-term Fed rate hike. The dollar index, which measures the US dollar against a basket of currencies, fell to a one-month low of 93.43. Apart from dollar weakness, there was little else driving the single currency today with the only major European data coming out of the UK. UK manufacturing and industrial production [..]

Yuan rebounds from 5-month lows on China trade data ahead of holiday weekend

Posted on June 8, 2016 at 12:11 pm GMT

Imports to China fell by less than expected in May, raising hopes that domestic demand in the world’s second largest economy is strengthening. Chinese imports have been declining on a year-on-year basis since November 2014 as the economic slowdown has led to lower demand for international goods and raw materials. May imports were down 0.4% on an annual basis, the lowest decline since December 2014 and above estimates that they would fall by a much larger 6.0%. Exports were slightly [..]

Asian Session – Dollar at one-month low; China trade mixed but Japan GDP revised up

Posted on June 8, 2016 at 7:56 am GMT

The dollar index fell to one-month lows on Wednesday as the US currency continues to be weighed by fading expectations of a summer rate hike by the Fed. The absence of any major data before the FOMC meeting next week is likely to keep the dollar muted. The greenback dipped to a low of 106.71 yen earlier in Asian trading after Japanese GDP figures for the first quarter were revised up. But it later rebounded slightly to 107.09 yen in [..]

Technical Analysis – USDCAD turns bearish after breaching 1.28 and 50MA

Posted on June 8, 2016 at 7:21 am GMT

USDCAD extended losses for a fourth day on Wednesday, further retracing the upleg from 1.2460 to 1.3187. The market is now testing the 61.8% Fibonacci retracement level at 1.2738. This is an important support level which if broken to the downside, would accelerate a further decline towards the key 1.2600 level. RSI is trending down and is in bearish territory below 50, suggesting there is risk of further downside. If the pair continues on its downside below 1.2600, there is [..]

European Session – Oil breaches $50 a barrel; sterling tests $1.46

Posted on June 7, 2016 at 2:37 pm GMT

It was a relatively quiet trading session, mainly due to the lack of major market moving data today. The US dollar was lower against most of its major counterparts like the euro and the pound and was also soft against the Canadian and Australian dollars. Fed Chair Yellen’s speech on Monday failed to show a repetition of her previously communicated call for a rate hike in the ‘coming months’, so this led to a move away from the greenback. European [..]

Technical Analysis – AUDJPY climbs above 80 in renewed upside momentum

Posted on June 7, 2016 at 1:53 pm GMT

AUDJPY has surged by almost 3% in the past two days to break above 80, helping it recover from fresh 4-month lows. However, despite the strong upside momentum, RSI has only barely reached 50 and the MACD is still in negative territory (although the signal line is in an ascending trend). Further gains in the near term are possible but the pair is already struggling to hold above the key resistance level of 80 and needs a strong break above [..]

Aussie jumps 1% after RBA cools on further rate cuts

Posted on June 7, 2016 at 10:44 am GMT

The Reserve Bank of Australia (RBA) kept its cash rate unchanged at 1.75% at its policy meeting on Tuesday in a widely expected move. But in a surprise change of tone, the accompanying statement from today’s meeting was a departure from the usual language where the RBA would maintain an easing bias. In today’s statement, RBA Governor Glenn Stevens said “the Board judged that holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in [..]

Asian Session – Dollar stuck near lows as Yellen gives no timing of rate hike

Posted on June 7, 2016 at 8:00 am GMT

Fed Chair Janet Yellen gave little away yesterday as she spoke about the US economy at the World Affairs Council in Philadelphia. After much speculation as to whether Yellen would signal a rate rise in the coming months, investors were left disappointed from the lack of policy direction. Analysts interpreted this as there being little chance now of a rate rise in June and that a July hike would be entirely dependent on the incoming data until then as Yellen [..]

Technical Analysis – US oil neutral after rally to $50

Posted on June 7, 2016 at 7:17 am GMT

US oil futures have rallied sharply from the April low of 35.24 to reach a high of 50.19 on May 26. In the bigger picture the trend is bullish and the crossing of the 50-day moving average above the 200-day moving average supports this view. However, the short term outlook is neutral since prices have failed to break above the 50.19 high and the market has been consolidating gains in the past three weeks. RSI is in bullish territory but [..]

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