Trade Idea: USD/CAD – Stand aside

Although the greenback has rebounded after yesterday’s fall to 0.9653 and consolidation with mild upside bias is seen for test of previous support at 0.9740-45, break there is needed to revive our previous bullishness and signal the retreat from 0.9817 has ended and bring stronger rebound to 0.9790, then retest

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Trade Idea: EUR/GBP – Buy at 0.8745

As the single currency has maintained a firm undertone after this week’s rebound, suggesting the decline from 0.9043 has formed a low at 0.8611 last week and near term upside bias is seen for further gain to 0.8827 (50% Fibonacci retracement 0.9043-0.8611) but reckon resistance at 0.8846 would hold on first testing.

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Yen-Strength Throws GBP/JPY Back at Rising Channel Support

The poor ADP employment release brought a wave of risk aversion, boosting the JPY and the CHF. Also, note soft UK manufacturing PMI not helping the sterling-rally that was so sharp last week.

GBP/JPY, which has shown bullish strength in a rising channel is pushed back to the support. The ability

Source: ActionForexall Rss Feed

EUR/USD's Positive Reversal Signal in the 1H Chart Targets 1.4470

The EUR/USD paused its rally but remains bullish as the RSI remains above 60 in the 1H chart.

There is a bearish divergence spotted, and the market did slow down. However, this lead to a positive reversal signal where the RSI creates a lower low, but the price low is higher.

Source: ActionForexall Rss Feed

US ADP Employment Change Strongly Undershoots Forecasts for May, NFP to Follow?

The ADP report is used as a curtain opener for the government's Non-Farm Payroll release, but it has been a bit sporadic in how closely it predicts what the NFP figure will be. The expectations is for the economy to have added around 195K jobs.

Even though the ADP report has

Source: ActionForexall Rss Feed

U.S. Tens Test 3% Yield as Job Clouds Gather

Investors are starting to get a better understanding of the irritation Fed Chief Bernanke publicly displayed in November following the FOMC's decision to launch phase two of its quantitative easing plan. Mr. Bernanke appeared to be on the defensive when quizzed about the need to bring intervention in the government

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US 10-Year Yields Slide to 3% Following Weak ADP Data

Following the weaker ADP report today US yields came under pressure as bond prices rallied amidst concerns about the global recovery. The Treasury rally pushed the 10-year yield to 3% undermining the USD against its safe haven rivals.

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USD/JPY Mid-Day Outlook

USD/JPY's break of 80.70 minor support suggests that recovery is completed and intraday bias is back to the downside for retesting 79.58 first. Break there will confirm that whole fall from 85.51 has resumed for a retest on 76.40 low. On the upside, above 81.76 will delay the bearish case

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GBP/USD Mid-Day Outlook

No change in GBP/USD's outlook. Retreat from 1.6546 is still in progress but we'd expect downside to be contained by 4 hours 55 EMA (now at 1.6365) and bring another rise. Above 1.6546 will target a test on 1.6744 high first. Break will confirm up trend resumption for 61.8% projection

Source: ActionForexall Rss Feed

EUR/USD Mid-Day Outlook

With 1.4261 minor support intact, intraday bias in EUR/USD remains on the upside for 61.8% retracement of 1.4938 to 1.3969 at 1.4568. As discussed before, the corrective pull back from 1.4938 should have completed at 1.3969 already. Break of 1.4568 will target a retest on 1.4938 high next. On the

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Afternoon Forex Overview

The euro fluctuated in European trading hours Wednesday as traders responded to headlines on Greece, but the market's overall direction remained unclear, leaving U.S. data, due later, as still the biggest events of the day.

Early market patterns left traders frustrated. First, the euro swooned on German press reports that Germany

Source: ActionForexall Rss Feed

Manufacturing Sector Expanded at a Slower Pace in May

The supply chain disruptions caused by the disaster in Japan coupled with higher energy prices are likely behind the slowdown in manufacturing activity in May. Despite the sharp deceleration, the overall index remains above the 50-mark that indicates expansion, and even above its long-term average of 52.8.

While manufacturing experienced a

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ISM Manufacturing Index Drops Sharply in May, Will Weaker USD or "Risk-Off" ...

The Manufacturing PMI showed its biggest 1 month drop since 1984, with the index coming in at 53.5 compared to April's 60.4. Forecasts were for a much smaller decline to the 57-58 range. Regional manufacturing surveys have underperformed all month and we see it showing up strongly on the national level.

Source: ActionForexall Rss Feed

USD/CAD Bounces Off Trendline Support; 0.9750 is a Critical Pivot

The decline yesterday in the USD/CAD followed a BOC statement that the market interpret as hawkish.

This bearish action is so far contained and supported by a rising trendline seen in the daily chart above. Note that the market in the medium to long term is still bearish, as the market

Source: ActionForexall Rss Feed

U.S. Manufacturing and ADP Payroll Growth Moderate in May

The ISM manufacturing index remained in expansionary territory in May although the pace of growth eased markedly, as shown by the decline in the index to 53.5 from 60.4 in April (a reading above 50 indicates the sector is generally expanding). The Market expected a more moderate decrease in the

Source: ActionForexall Rss Feed

ISM: Slower Pace of Expansion, Yet Prices Remain an Issue

Headline ISM moderated again for the third straight month as the manufacturing sector continues to exhibit growth although at a pace that remains disappointing to many. In May, the ISM index came in at 53.5 from 60.4 in April (top chart). The basic message is that the factory sector continued

Source: ActionForexall Rss Feed

Trade Idea Wrap-up: USD/JPY – Stand aside

Dollar’s intra-day selloff after the release of worse-than-expected U.S. ADP data and the brief breach of this week’s low at 80.71 suggests the fall from 82.23 is still in progress, weakness towards previous support at 80.34 cannot be ruled out, however, near term oversold condition should limit downside and reckon

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Trade Idea Wrap-up: EUR/USD – Buy at 1.4310

As the single currency has maintained a firm undertone in part due to dollar’s broad-based weakness after the release of soft U.S. ADP job data, suggesting recent upmove is still in progress and may extend gain to 1.4454 (50% Fibonacci retracement of 1.4940 to 1.3968), however, weakening of near term

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Trade Idea Wrap-up: GBP/USD – Buy at 1.6355

Although intra-day fall from 1.6496 on week UK data signals the decline from 1.6547 top is still in progress and may bring a stronger retracement of recent upmove to 1.6355-60 (38.2% Fibonacci retracement of 1.6055-1.6547) cannot be ruled out, near term oversold condition should limit downside and bring rebound later.

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