Monday, May 16, 2011
China: Central Bank raised reserve ratio for banks by 50 basis points
FOREX NEWS: As it became known on Thursday, the Bank of China decided to raise reserve ratio for the banks by 50 basis points, the decision will come into effect on 18 May.
Source: Liteforex.org rss feed
The launch of LiteForex’ «Feel the Spread» contest
LiteForex's News: LiteForex group of companies announces the launch of a new contest «Feel the Spread», the total monthly prize money of which amounts to 3600$!
Now any holder of “Floating Spread” type of account can take part in the «Feel the Spread» weekly contest every Tuesday and get real money deposited in his account as a prize.
Seven holders of “Floating Spread” accounts will be the winners ...
Source: Liteforex.org rss feed
USA: PPI in April: +0.8% m/m
FOREX NEWS: As it became known on Thursday, PPI index in the U.S. rose by 0.8% m/m (+6.8% y/y) in April.
Source: Liteforex.org rss feed
USA: Number of unemployment benefit applications reduced by 44 thousand over a week
FOREX NEWS: According to the data released yesterday, number of unemployment benefit applications in the U.S. reduced by 44 thousand, to 434 thousand over a week.
Source: Liteforex.org rss feed
USA: Preliminary volume of retail sales in April: +0.5%
FOREX NEWS: As it became known on Thursday, preliminary volume of retail sales in the U.S. increased by 0.5% in April; while excluding sales of cars the index rose by 0.6%
Source: Liteforex.org rss feed
Canada: Prices index for new houses in March: +1.9% y/y
FOREX NEWS: According to the released data, price index for new houses in Canada rose by 1.9% y/y in March and remained unchanged on monthly basis.
Source: Liteforex.org rss feed
Norway: Key interest rate rose to 2.25% per annum
FOREX NEWS: As it became known yesterday, the Bank of Norway decided to raise key interest rate by 25 basis points, to 2.25% per annum.
Source: Liteforex.org rss feed
Great Britain: GDP in February-April: +0.3% - NIESR
FOREX NEWS: According to the NIESR estimates, GDP in the UK rose by 0.3% in February-April against the previous increase by 0.5%.
Source: Liteforex.org rss feed
Euro/USD: Euro remains weak at the end of the week
Forex analytics: The pair EUR/USD continues to be traded downward At the Forex currency market on Friday morning, remaining at the lows of March.
By 9.25 Moscow time the Euro is at 1.4220 against closing level of 1.4245 yesterday.
Investors are still apprehensive to revert to risk due to the instability at the global capital markets. The data on GDP in Eurozone will be made public today and investors expect the ...
Source: Liteforex.org rss feed
GBP: British Pound sales continues for four days
Forex analytics: At the Forex currency market the British Pound Sterling rate continues to be under selling pressure on Friday, due to the ongoing negative factors of the external background.
Forex forecast: MACD indicator is in the positive area for the pair GBP/USD, however it goes down, trading volume is also reducing, which indicates sell signal. Stochastic Oscillator is coming back to the oversold zone, ...
Source: Liteforex.org rss feed
France: Real GDP in QI: +1.0% q/q
FOREX NEWS: As it became known today, real GDP in France rose by 1.0% q/q (+2.2% y/y) in QI against the growth by 0.3% in QIV, 2010.
Source: Liteforex.org rss feed
CHF: Swiss Franc still fails to work out general trading idea
Forex analytics: At the Forex currency market Swiss Franc rate is traded downward on Friday, which, however does not exclude the possibility of growth in the nearest future. Thus, the pair USD/CHF is missing general and integrated trading idea.
Forex forecast: MACD indicator is in the negative area for the pair USD/CHF; it slowed down its decline and started upward reversal, giving a pair buy signal. ...
Source: Liteforex.org rss feed
Korea: Interest rate was left at the level of 3.00%
FOREX NEWS: As it became known at the end of the week, interest rate in Korea was left at the level of 3.00% per annum, despite expectations of the growth by 25 basis points.
Source: Liteforex.org rss feed
JPY: Japanese Yen reverted to growth
Forex analytics: The Japanese Yen rate is strengthening again reverted to growth at the Forex currency market on Friday. However the situation at the global capital markets remains volatile this morning which prevents from making far-reaching conclusions.
Forex forecast: MACD indicator for the pair USD/JPY crossed the signal line from top to bottom, giving a pair sell signal. Stochastic oscillator started to ...
Source: Liteforex.org rss feed
AUD: Australian Dollar remains under pressure
Forex analytics: At the Forex currency market the Australian Dollar rate continues to be the target of bears’ attention
Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and keeps on declining, giving a pair sell signal with the volumes slightly above average. Stochastic Oscillator falls in the neutral zone, giving a similar signal.
Forex recommendations: in case of breakdown at the ...
Source: Liteforex.org rss feed
Germany: GDP rose by 1.5% q/q in QI
FOREX NEWS: According to the data released today, GDP in Germany rose by 1.5% q/q (+4.9% y/y) in QI; at the forecast of growth by 0.9% on quarterly basis.
Source: Liteforex.org rss feed
NZD: New Zealand Dollar determines movement direction
Forex analytics: The New Zealand Dollar rate is at the standstill at the Forex currency market this morning trying to determine trading directions after yesterday’s steady growth.
Forex forecast: MACD indicator is in the positive area for the pair NZD/USD, however it goes down, giving a pair sell signal. Stochastic Oscillator is moving along the signal line in the neutral zone, not giving a clear ...
Source: Liteforex.org rss feed
Rouble reverted to growth in pairing with USD
Forex analytics: With the start of the trading session at the MICEX currency section, the Russian Rouble rate reverted to growth in pairing with the USD amid yesterday’s rise in the pair EUR/USD and suspension of sales in the oil sector.
Thus, trading session for the USD started at the level of 27.86 roubles, which is 17 kopek less than yesterday’s closing level; the EUR started movement at the level of ...
Source: Liteforex.org rss feed
Switzerland: Producer prices and import prices in April: +0.3% m/m
FOREX NEWS: As it became known on Friday, producer prices and import prices in Switzerland rose by 0.3% m/m (+0.1% y/y) in April.
Source: Liteforex.org rss feed
Eurozone: GDP rose by 0.8% q/q in QI; above expectations
FOREX NEWS: As it became known today, GDP in Eurozone rose by 0.8% (+2.5% y/y) on quarterly basis in QI, while the forecast of growth was to 2.2% y/y and the previous level 2.0%.
Source: Liteforex.org rss feed
USA: Preliminary index of consumer confidence of Michigan University rose to 72.4 points in May
FOREX NEWS: As it became known yesterday, the U.S. preliminary index of consumer confidence of Michigan University rose to 72.4 points in May against the level of 69.8 points in April.
Source: Liteforex.org rss feed
Canadian Manufacturing Sales Surge in March
Manufacturing sales rose 1.9% in March, more than retracing the 1.8% drop (revised from the initially reported -1.5%) in February. The increase in March was slightly above market expectations for a 1.8% rise going into the report. Eliminating the impact of prices, the volume of manufacturing sales rose 1.9% following
Source: ActionForexall Rss Feed
Australia: Finance of housing construction in March: -1.5% m/m
FOREX NEWS: According to statistics released on Monday, finance of housing construction in Australia fell by 1.5% m/m in March.
Source: Liteforex.org rss feed
Trade Idea: USD/CAD – Buy at 0.9630
As the greenback has risen again last Friday and indicated resistance area at 0.9713-22 was penetrated, adding credence to our view that wave 3 has ended at 0.9446 earlier and wave 4 is still in progress for retracement of recent decline to 0.9800 and then 0.9828 (50% Fibonacci retracement of
Source: ActionForexall Rss Feed
Japan: CGPI index in April: +0.9% m/m
FOREX NEWS: As it became known on Wednesday, CGPI index in Japan rose by 0.9% m/m in April against the growth by 0.6% m/m in March.
Source: Liteforex.org rss feed
Trade Idea: EUR/GBP – Sell at 0.8875
Despite intra-day retreat to 0.8676, as the single currency has rebounded after holding above last week’s low at 0.8674, suggesting further consolidation would take place and another corrective bounce to resistance area at 0.8799-0.8811, break would bring a stronger rebound to 0.8859 (50% Fibonacci retracement of 0.9043 to 0.8674) but
Source: ActionForexall Rss Feed
Japan: Net orders in the machine building sector in March: +2.9% m/m
FOREX NEWS: According to the data released at the beginning of the week, net orders in the machine building sector in Japan increased by 2.9% m/m in March against the revised level of-1.9% m/m in February.
Source: Liteforex.org rss feed
Stocks May Follow Commodities Lower
Stocks have been lagging the recent sell off in risky assets. Although they have failed to break above key levels, they remain fairly well supported and most indices have been trading sideways in the past couple of weeks. That compares with commodities, the CRB/ Thomson Reuters index has fallen nearly
Source: ActionForexall Rss Feed
Great Britain: House prices RIGHTMOVE in May: +1.3% m/m
FOREX NEWS: According to the data released on Monday, house prices Rightmove in the UK rose by 1.3% m/m (+0.7% y/y) in May.
Source: Liteforex.org rss feed
This Week in the USD: Housing, Manufacturing, and FOMC Minutes on Tap
Markets were volatile last week as investors became wary of risk once again. Commodities slid as did equities especially in Europe and North America as mostly favorable earnings failed to offset global growth worries and sovereign debt problems continued to roil the Euro-zone. The continuing Greek saga sent the EUR
Source: ActionForexall Rss Feed
Japan: Consumer confidence decreased to 33.1 points in April
FOREX NEWS: As it became known this morning, level of consumer confidence in Japan decreased to 33.1 points in April against the previous level of 38.6 points.
Source: Liteforex.org rss feed
EURUSD 1.37 or 1.45?
Week starts off in a sour mood, but momentum is lacking as markets remained poised on a fulcrum. The key EU finance minister summit kicks off today and concludes tomorrow what will it mean for EURUSD?
The risk trade is making a feeble start for the week, as commodities are
Source: ActionForexall Rss Feed
Euro/USD: Euro is again under pressure from external background
Forex analytics: At the Forex currency market, the pair EUR/USD is traded being under pressure on Monday.
By 9.00 Moscow time the Euro is at 1.4084 against closing level of 1.4118 in Friday.
The next series of sales of the Euro was caused by the news about the arrest of the Managing Director of IMF Dominique Strauss Khan due to which even the meeting of the Fund was also postponed.
Moreover, concern about ...
Source: Liteforex.org rss feed
GBP/USD to Break out of Narrow Range in the NY Session
The 1H chart of the GBP/USD shows the market in a tight range to start the week. After finding support at 1.6150, the market also found resistance near 1.6220. The near-term pivot above that is the 1.6240-1.6250 area. The market should start picking up in the NY session for a breakout
Source: ActionForexall Rss Feed
GBP: British Pound is still on sale
Forex analytics: At the Forex currency market the British Pound Sterling rate continues to be in focus of the traders on Monday as investors keep on moving away from risk due to the unfavorable external background.
Forex forecast: MACD indicator is in the positive area for the pair GBP/USD and goes down, volumes have also dropped, which gives a clear sell signal. Stochastic Oscillator has come into oversold zone, ...
Source: Liteforex.org rss feed
EUR/USD Has a Resistance Cluster at 1.42
The EUR/USD slid last Friday after an AB=CD correction. The market starts this week finding support at 1.4060, then resistance at 1.4150. However, if another corrective rally swings from 1.4090, an AB=CD projection targets 1.42.
Source: ActionForexall Rss Feed
CHF: Swiss Franc is on the standstill this morning
Forex analytics: Swiss Franc rate is on the standstill at the Forex currency market on Monday, trying to regain from the previous sales. However there is a high possibility at the moment that Swiss currency will continue to be weak.
Forex forecast: MACD indicator is in the negative area for the pair USD/CHF and is going upward giving a pair buy signal. Stochastic Oscillator has reached overbought zone, giving a ...
Source: Liteforex.org rss feed
AUD/USD Forms Short-term Double Bottom
The AUD/USD completed a double bottom when breaking above 1.0590. Note also that the market is resolving a bullish divergence.
A pattern breakout projection targets 1.0670 right below 78.6% retracement.
The RSI is attacking 60. A break above it is trouble for the bearish momentum, and a break above 70 establishes a
Source: ActionForexall Rss Feed
USD rose in pairing with in pairing Rouble on Monday
Forex analytics: With the start of the trading session at the MICEX currency section, the Russian Rouble rate fell in pairing with the USD amid ongoing negative dynamics of the major pair at Forex and rollback in the oil market.
Thus, trading session for the USD started at the level of 28.01 roubles, which is 24 kopek more than closing level of Friday; the EUR started at the level of 39.64, (-25 kopeks).
Dual ...
Source: Liteforex.org rss feed
This Week in the GBP: Inflation, Employment, BOE Meeting Minutes
The past two weeks have seen the Pound declining against the USD amid currency markets that are were looking for safety amid a correction/sell-off in commodities and some uncertainties for the global recovery. While the USD was generally well bid during these two weeks, the economic data from the UK
Source: ActionForexall Rss Feed
JPY: Japanese Yen stuck in the range
Forex analytics: At the Forex currency market the Japanese Yen rate remains in the quite narrow range of 80.15-81.33 at the beginning of the week. At the moments the interest of players in JPY has been observed, since it acts as a safe asset while external background is still tense.
Forex forecast: MACD indicator for the pair USD/JPY has crossed the signal line from top to bottom and is not giving a clear signal. ...
Source: Liteforex.org rss feed
Trade Idea Wrap-up: USD/JPY – Buy at 80.65
Dollar’s retreat after intra-day rise to 81.07 suggests consolidation would take place, however, downside should be limited and as long as Friday’s low at 80.34 (where a ‘hammer’ was formed) holds, consolidation with mild upside bias remains for another rebound. A break of said resistance at 81.07 would bring another
Source: ActionForexall Rss Feed
AUD: Sales of Australian Dollar has not finished yet
Forex analytics: At the Forex currency market the Australian Dollar rate remains under the pressure on Monday because investors are not interested in the high-yielding currencies yet.
Forex forecast: MACD indicator is in the positive area for the pair AUD/USD and continues to go down, giving a pair sell signal, while volumes are slightly above average. Stochastic Oscillator goes down in the neutral zone, ...
Source: Liteforex.org rss feed
Global Long-Ends Suffer from Lack of Follow-Through Buying
A rally for bonds clearly predicated upon weakening commodity prices and declines for global stocks appears to have hit a brick wall on Wall Street at Monday's opening bell. Equity prices are no longer lower while the inaugural piece of economic evidence for the week failed to provide deserved further
Source: ActionForexall Rss Feed
NZD: New Zealand Dollar is in the focus of traders
Forex analytics: The New Zealand Dollar rate remains at the low level at the Forex currency market at the beginning of the week, because market has not any interest in risky positions. External background is still complex, which prevents from regaining from the previous sales.
Forex forecast: MACD indicator is in the positive area for the pair NZD/US, however it goes down, giving a pair sell signal. Stochastic ...
Source: Liteforex.org rss feed
Trade Idea Wrap-up: GBP/USD –Sell at 1.6320
As the British pound has rebounded again due to short-covering on back of dollar’s retreat versus other European currencies, suggesting further consolidation above last week’s low of 1.6147 would take place and retracement to the Ichimoku cloud bottom (now at 1.6277) would be seen, however, resistance at 1.6322 should limit
Source: ActionForexall Rss Feed
Eurozone: Final HICP in April: +2.8% y/y
FOREX NEWS: As it became known today, consumer inflation HICP in Eurozone increased by 2.8% y/y in April against the level of +2.7% y/y in March.
At the same time net final HICP rose by 1.6% y/y in April against the level of +1.3% in March.
Source: Liteforex.org rss feed
Trade Idea Wrap-up: USD/CHF – Sell at 0.8905
Dollar’s intra-day selloff has dampened our previous bullishness and signals recent upmove has formed a temporary top at 0.8947 last week, hence consolidation with downside bias is seen for a test of 0.8797-98 (38.2% Fibonacci retracement of 0.8554-0.8947 and Friday’s low), break there would add credence to this view, bring
Source: ActionForexall Rss Feed
USA: Business activity research FBR of New York Empire State is 11.88 points in May
FOREX NEWS: As it became known today, business activity research FBR of U.S. New York Empire State fell to 11.88 points in May against the forecast of 19.75 points.
Source: Liteforex.org rss feed
Elliott Wave Trade Ideas Performance Update
The Australian dollar went through a roller-coaster ride last week, despite rebounding initially to as high as 1.0889 (over 300 points from the reaction low of 1.0537), aussie ran into heavy selling pressure there as suggested (we recommended to sell at 1.0875 for 1.0600), price did tumble in line with
Source: ActionForexall Rss Feed
Wednesday, May 11, 2011
Trade Idea Wrap-up: EUR/USD – Stand aside
As the single currency has retreated after failing to penetrate the Ichimoku cloud top, suggesting the recovery from this week’s low at 1.4254 has possibly ended at 1.4423 earlier today and test of yesterday’s low at 1.4270 is likely but break there is needed to confirm the decline from 1.4940
Source: ActionForexall Rss Feed
Trade Idea Wrap-up: GBP/USD –Buy at 1.6415
Although the British pound has retreated from 1.6518, cable’s intra-day rally on hawkish BOE inflation report adds credence to our view that a temporary low has been formed at 1.6270 earlier this week and consolidation with upside bias remains for retracement of recent decline to previous resistance at 1.6544 but
Source: ActionForexall Rss Feed
Trade Idea Wrap-up: USD/CHF – Buy at 0.8710 or sell at 0.8870
Although the greenback has edged higher again in New York session and near term rise from last week’s low of 0.8554 may bring a stronger retracement of recent decline to 0.8869 (61.8% projection of 0.8554 to 0.8815 measuring from 0.8708), loss of upward momentum should limit upside to 0.8890/00 and
Source: ActionForexall Rss Feed
EUR/USD Maintains Bearish Momentum in the US Session
The short-term momentum in the EUR/USD remains bearish, as the RSI reading in the 1H chart stayed below 60, and is now pushing back below 30.
Also, the rally from 1.4260 to 1.4420 was in a 3-wave sequence, possibly completing a corrective structure.
If the market can clear 1.4250, we are likely
Source: ActionForexall Rss Feed
Narrow Range for Government Yields on New Commodity Sales
Sliding crude oil prices and a turn in the euphoric tide lifting equities prompted a mid-morning lift for government debt prices midweek. Yields subsequently remain close to the recent floor even after commodity buyers plundered offers after the worst performance in three years forcing a rebound not only in inflation-bearing
Source: ActionForexall Rss Feed
EURJPY: Continues To Face Bear Threats
While the cross closed slightly higher above our highlighted resistance at the 116.46 level, its April 18'2011 low on Tuesday, it has backed off that level in early trading today. We expect the 116.46 level to continue to cap gains. This should turn EURJPY lower towards the 114.78 level with
Source: ActionForexall Rss Feed
A Strong US Dollar Triggers Weakness in Commodities and their Currencies
As of this posting, gold dropped $17.70 or 1.16% to $1,498.40 because investor demand for the U.S. currency is growing because the outlook for Greece securing additional aid is in flux. Today market participants are choosing the dollar over the precious yellow metal. Silver also plummeted $3.11 or 8.09% to $35.375.
Source: ActionForexall Rss Feed
Dollar Surges Amid Risk Aversion
The U.S. dollar surged and stocks tumbled as risk aversion took hold amid ongoing debt concerns in the Eurozone periphery and softer Chinese economic data. Additionally, global inflation concerns mounted increasing the prospects for higher interest rates. The dollar was given a boost by hawkish rhetoric from the Fed as
Source: ActionForexall Rss Feed
EUR, AUD and Other Higher-Yielders Fall, as Investors Scramble for Safety Amid Plunging Oil
The lull in risk aversion seen yesterday was broken today as we had renewed selling in commodity and equity markets. Last night, data from China showing the need for more tightening from the central bank weighed on commodities, and when more sovereign debt concerns crept up in the European session
Source: ActionForexall Rss Feed
Tuesday, May 10, 2011
Greece's Credit Rating Gets Downgraded Again
The euro plummeted on Monday after rating agency Standard Poor's downgraded Greece's credit rating. Greece's rating fell by two levels to B and will be kept on a negative credit watch. The single currency continues to be under pressure weighed by a rumor saying that Greece is considering leaving
Greek Downgrade Weakens Euro, China & Australia Post Strong Trade Surplus
Trade surplus data from Australia and China were above expectations which boosted markets and risk-appetite built up gradually. China posted surplus of $11.4 Billion, more than three times of estimate of $3.2 Billion as exports climbed 30% and imports slowed down to 22%, boosting the US case for faster Yuan
EUR/CHF Daily Outlook
Intraday bias in EUR/CHF remains on the downside with 1.2628 minor resistance intact and further decline should be seen to 1.2401/32 support zone. As noted before, consolidation pattern from 1.2401 should have completed at 1.3234 already and fall from there is resuming the larger down trend. Break of 1.2401 will
EUR/GBP Daily Outlook
At this point, further decline is still in favor in EUR/GBP as long as 0.8817 minor resistance holds. Sustained break of 0.8739 support will argue that whole rise from 0.8284 has completed and deeper fall could then be seen to 61.8% retracement of 0.8284 to 0.9041 at 0.8573 first. On
EURUSD – Bearish Below 1.4377
Against a background of bearish EURUSD signals for sentiment for this week, the market traded to the most negative levels for 3 weeks. The lows were not maintained, however, and the net movement was virtually unchanged. While this price action highlights a degree of investor uncertainty, selling pressure has been
Strong April Rebound For China's Trade Surplus
Early this morning the NZD was hit by headlines from the IMF who commented that the NZD is as much as 20% overvalued although its current accommodative monetary stance is appropriate. And from China we saw a huge jump in the trade balance to $11.4 bln from $0.14 bln previously
Market Drivers - Currencies
An ECB member stated that a restructuring of the Greek debt would bring the banking system of the euro zone to its knees. This is no news. We have referred to this several times, but when an ECB official states the same thing it puts pressure on the market, and
Today's Market Outlook
EURUSD Remains under pressure, with loss of Friday’s low at 1.4314, to test 1.4250 support. Recovery attempt have so far been capped at 1.4375, as near-term studies favor further weakness and below 1.4250 to open 1.4200/1.4156. Hourly 20 day MA maintain near-term bears, with lift above to focus 1.4375 barrier.
Technical Analysis Daily: GBP/USD
On Monday Pound/Dollar decreased with almost 150 pips, later recovered, in line with the neutral Interbank sentiment at almost +3%. The Cable depreciated from 1.6418 to 1.6269 yesterday, later climbed up to 1.6424, closing the day at 1.6401. Today the British Pound is showing some weakness again, but movements are
USD/JPY Daily Outlook
USD/JPY's consolidation from 79.58 temporary is still in progress and further recovery could be seen. But still, upside is expected to be limited by 82.76 resistance and bring resumption of fall from 85.51. Below 80.15 minor support will flip bias back to the downside and would target a retest on
Morning Forex Overview
Uncertainty over the European Union's ability to manage Greece's debt problems, along with a slide in oil prices that tempered euro-zone interest rate hike speculation, sent the common currency to a six-week low against the yen in Asia Tuesday.
USD/CHF Daily Outlook
USD/CHF's recovery from 0.8552 short term low is still in progress for 38.2% retracement of 0.9399 to 0.8552 at 0.8853. But after all, upside is expected to be limited by 0.8895 support turned resistance and bring down trend resumption. On the downside, below 0.8707 minor support will flip bias back
GBP/USD Daily Outlook
GBP/USD's break of 1.6406 minor resistance suggests that a temporary low is in place at 1.6269 and intraday bias is turned neutral for the moment. Nevertheless, another fall is still expected as long as 1.6573 resistance holds. Below 1.6269 will target 1.6166 support first.
EUR/USD Daily Outlook
Further decline is still mildly in favor in EUR/USD with 1.4440 minor resistance intact and current fall from 1.4938 could extend to 1.4157 cluster support (38.2% retracement of 1.2873 to 1.4938 at 1.4149). But downside should be contained there and bring rise resumption. Above 1.4440 minor resistance will flip bias
China Back On Track With Strong Trade Balance
The first quarter of this year saw China report a remarkable deficit on its trade balance, but overnight China showed that it was solidly back on track in April with a trade balance of $11.4 billion, far above consensus's expectation of a smaller surplus of $3.2 billion and above March's
USD/CHF Candlesticks and Ichimoku Analysis
Although the greenback rebounded to as high as 0.8815, as dollar has retreated after faltering below resistance at 0.8835, suggesting further consolidation would take place and as long as yesterday’s high at 0.8815 holds, mild downside bias remains for another fall to last week’s low at 0.8554, break there would
China's Beat Keeps Commodities Bid
A relatively quiet night in the US and Asian sessions with the commodity market seemingly taking a breather, but still trading with a defiant bid tone. This scenario was aided in large part by data out of China beating street expectations.
Trade Idea: AUD/USD – Sell at 1.0875 or buy at 1.0670
Although aussie edged higher to 1.0804 today and the rebound from last week’s low at 1.0537 may bring a stronger retracement of the fall from 1.1012 to 1.0830/35 (61.8% Fibonacci retracement of 1.1012 to 1.0537), renewed selling interest should emerge around 1.0875/80 and 1.0930/35 should hold, bring another decline later.
Euro Hammered By Greek Debt Woes
The euro faced further headwinds as the Greek debt crisis is moving to a next phase. EUR/USD and EUR/GBP are nearing important support levels. However, for now there is no trigger available to stop this ‘correction’.
Trade Idea: EUR/JPY – Stand aside
The single currency fell again after meeting renewed selling interest at 116.48 yesterday and although euro has rebounded again after intra-day brief fall to 114.77, a sustained breach of yesterday’s high at 116.48 is needed to signal a temporary low is formed and bring stronger rebound to last Friday’s high
Saturday, May 7, 2011
Dollar Advances for a Fifth Day- Index Tapping Resistance
The greenback closed out the week higher by nearly 2% as major swings in FX markets had saw the dollar shorts squeezed out. The Dow Jones FXCM Dollar Index continued its advance for the 5th consecutive day.
Friday, May 6, 2011
US Dollar: Is This the Long-Awaited Recovery or a Temporary Bounce?
There was plenty of data and US-based event risk this past week to suggest to the casual observer that the dollar was running on its own fundamental strength; but experienced fundamental traders should notice something was amiss. Though there were particularly hawkish comments from voting Fed member Kocherlakota, a better-than-expected non-farm payrolls report and a strong manufacturing activity survey; these developments don’t tap into the larger fundamental drivers behind the greenback. Typically, the catalysts that can lead to meaningful dollar (bull) trends are: broad risk appetite; interest rate speculation and relative growth (return) potential. Yet, all three of these have offered only modest support to the greenback recently. Fueling a dollar rally in their absence though is an unfamiliar motivator – aggressive euro selling. Will this indirect strength keep the dollar buoyant? Will one of the usual themes step in to keep the currency’s momentum? Regardless of what takes up the dollar’s call; the market seems to be far more aware its positive features.
EUR/USD Drops to Support Confluence
Price action on EUR/USD (a daily chart of which is shown) as of Friday (5/06/2011) after the Non-Farm Payrolls report has descended to hover around a confluence of support that includes the key 1.4500 support level and an uptrend support line that extends back to the early January low. Therefore,
Glass Half Full for US Employment Report?
After two days in a row of fearsome misses on US data, the market decided to focus on the positive US April payrolls number rather than the negative household survey result for the month. Is this fodder for the everything up vs. the USD trade?
After a near historic shock in
Did GBP/JPY Complete the Zig Zag Correction?
The GBP/JPY was seen attempting to complete an ABC correction yesterday, in the terminal wave of wave C.
Wave C could be complete now, and a bullish impulse count can be anticipated.
However, if the market breaks below 131.32, we might have another decline towards 130.00, before completing this last leg of
ECB: Tame Hawks
After Thursday's ECB Governing Council meeting, the euro surrendered its gains from the previous week. EUR-USD plunged by nearly four big figures - from 1.49 to 1.45, reflecting market participants' disappointment that the ECB, contrary to widespread expectations, had given no indication that interest rates would rise again in June.
Weekly Focus: Large Drop in Commodity Prices
In the past week financial markets started to question the sustainability of the high
commodity price levels as there was increasing evidence around the globe that
particularly the high crude oil prices are starting to take their toll on the global economy.
The drop in commodity prices was aggravated by
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