Posts Tagged ‘technical analysis’
Saturday, May 21st, 2011
The Euro and dollar will continue to reflect on their particular weaknesses for the short term. At this time there are signals for probable short-term range fx trading as market segments can be really cautious about fundamentals in both foreign currencies. Provided the general multinational risk profile, the net effect is sooner or later likely to end up a firmer dollar, nevertheless the US currency will certainly still battle to acquire sturdy support unless there’s a major deterioration within the European banking market.
The Euro struck resistance near 1.4280 up against the dollar on Wednesday and weakened to test support within the 1.42 region, nonetheless resisted additional losses as risk appetite had been firmer and consolidated around 1.4250 after failing to split across the 1.43 area yet again. There will obviously be prolonged concerns on the Greek debt circumstances and the broader unfavorable effect on the financial industry.
Additionally there is likely to be a wait ahead of additional policy action is taken that will also be possibly harmful to sentiment as sovereign-debt anxieties continue on. The Euro may still gain certain support on yield grounds with ECB authorities still choosing a firm tone. Underlying confidence in the US economy and currency will stay weaker, although the end of quantitative easing in June should help control selling demand.
Risk circumstances are likely to end up typically less favorable that will provide some protective dollar assistance. On the whole, the Euro is likely to stall near 1.43 and a drop to the 1.40 region is still realistic, nevertheless the dollar will find it quite hard to break Euro support in this area.
The dollar located support underneath 81 against the yen during Wednesday and recovered to a high near 81.50 in US forex trading on anticipations of further merger-related flows out from Japan. General confidence in the Japanese economic climate signals to be particularly weak and the Bank of Japan will need to maintain a highly expansionary policy to support the economic system after the GDP contraction and downward revision to industrial production.
The dollar pushed to a high close to 81.75 on Thursday, but momentum for the moment is liable to stall inside the 82.0 area. Buying US retreats towards the 81 region signals to be the best tactic.
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Monday, May 16th, 2011
High volatility forex trading may well continue being a key short-term characteristic as margin calls continue to set off a decrease in speculative plays in commodity trades as well as ignite wider greenback buying. The Euro should be able to locate a short-term bottom in the 1.40 area against the dollar given the probability of underlying reserve diversification away from the dollar by Asian central banks.
The Euro continued to be under selling pressure in European fx trading on Thursday and dropped to a low around 1.4125 while risk appetite worsened. The Euro was able to recover to the 1.4250 area in choppy systems trading. Worries over the Euro-zone sovereign debt scenario will surely continue for the short term. There will be distinct worries that German political resistance to fresh support for Greece will propel the nation nearer to debt default. Risk conditions will remain essential and there will be even more defensive dollar support if sentiment signals become weak again.
Stronger GDP details from core Euro members will maintain speculation over a further increase in ECB interest rates which could provide some amount of Euro support. The dollar will still be hindered by a deficit of confidence in the fundamentals and also by expectations that the US Federal Reserve will maintain a loose monetary policy following June.
The dollar will, consequently, continue being dependent upon weakness in other places to make strong progress. On the whole, rallies are liable to stall in the 1.4350 area with a restored test of support inside the 1.4125-50 area.
Against the Yen, the dollar was unable to bust above 81.30 during Thursday and was confronted with renewed selling with a test of support near 80.50. The yen will gain some defensive support when risk appetite signals drops and there’s a fresh decline in commodity prices. Underlying confidence in the Japanese economic system will stay very weak and the medium-term yen signals appears very weak. Choppy forex trading conditions will continue and there is scope for US dollar support near the 80.50 area, particularly with speculation over fresh G7 involvement to stem yen gains.
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Friday, May 13th, 2011
Soon after yet another above target CPI in April, Chinese authorities opted to raise the reserve requirement ratio for their banks by 0.5%, the 8th rise in five months. Whenever China, the world’s 2nd greatest economy, takes steps to decrease the growth, a flight to safety ensues. Commodities suffer the most as demand from China is predicted to slow resulting from tightening.
Crude oil dropped on Thursday, building on the yesterday’s sharp losses, as the International Energy Agency warned that high oil prices are bringing about lesser demand, specifically in the U.S. The U.S. is the largest oil consumer, pursued by China. Add these 2 developments jointly and a perfect storm signals for the U.S. dollar’s rally as well as a slide in stocks. The USD forex gains had been assisted by poor U.K. manufacturing Production and a very much softer than envisioned report on the Euro Zone Industrial Production.
EUR/USD reliable free forex trading signals: The EUR/USD initially tried moving higher but 1.4420 resistance held sturdy and as whispers surrounding the probable delay of a rescue package to Greece blossomed it was strongly sold lower. There’s a lot of mixed thoughts with traders and at the moment the bulls are satisfied purchasing the drop respecting the 1.4150 support and the bears are satisfied to sell rallies back in the direction of 1.4250 initially.
USD/JPY accurate, reliable free fx signal: The USD/JPY goes on to grind higher and the more time we remain over 80.50, the better likelihood we have to crack higher in the approaching days and this sustained rally has forex traders sensing a change in the sentiment and a careful bullish tone is now rising providing that the rally can be continued. A split down through 80.50 may possibly bring the bearish tone back again.
GBP/USD best daily professional forex trading signals: GBP chipped higher on the BoE announcement that inflation in the UK may well reach 5% in the near term and traders took this as an tremendously bullish signal. This announcement combined with a crack of significant resistance saw the GBP up to the highs where the reversal transpired as the adverse information from the Eurozone triggered the GBP to get trapped in the crossfire and sold intensely.
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Saturday, May 7th, 2011
In forex trading, the dollar index plummeted at the outset of the period on weaker than expected prints on the ADP employment and ISM non-manufacturing reports. The index discovered support at the 72.72 level, before speedily paring losses to end marginally higher for the session.
The pullback was backed up by a late-day rally in stocks which finished well off the lows and by forex traders who got rid of dollar shorts in front of tomorrow’s rate decisions and Friday’s employment report. The greenback is probably going to continue to be range bound between the 72.72 and 73.30 support/resistance levels.
A fast look at the majors sees the yen besting the majors contrary to the greenback as broad based declines in stocks and commodities supported risk-off trades. Tomorrow’s event risk had investors not willing to hold positions in the sterling, the euro, and the neighboring swissie, all of which ended flat on the day.
EUR/USD forex trading signals strategies: Yet again, the EUR/USD has been the range trader’s delight and 1.4750-1.4900 contained things once again with support on the drop coming from the Portugal bailout acceptance. It looks like continuing for the following 24 hours prior to the rate statement as traders continue to take into account higher rates however patient investors seem satisfied to wait and obtain better levels to purchase.
GBP/USD forex strategy signals: As earlier noted in yesterday’s report, the split of 1.6590 created a substantially bearish signal and on the release of worse than expected UK PMI which poured cold water on probable rate rises tomorrow as well as traders strongly dumping GBP against both USD & EUR. There seems to be support around 1.6440 but sentiment has changed to sell the rally from this point.
USD/JPY forex strategies signal: USD/JPY persists to break lower as traders remain content selling on any rally. We open the Asia session mid-range and whilst most traders are still calling it lower, all those not currently short from higher up seem to be waiting around for better levels to sell and anywhere back in direction of 81.75 seems to be their choice.
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Saturday, May 7th, 2011
The Federal Reserve should keep a extremely loose monetary policy over the upcoming few months. Commodity and equity markets should consequently still be able to locate solid support after any more quick dips of which will curtail dollar support. The large dollar short covering witnessed over the past 48 hours is surely a forewarning of additional market strains later in 2011, but markets ought to be able to restore some equilibrium next week. Watchful dollar buying on pullbacks remains to be the best systems strategy provided the fundamental risk/reward profile.
Nonetheless, currencies will likely keep quiet early in the session as markets wait for the all-important release of the US Employment report. Targets call for the world’s leading economy to add 185,000 jobs in April – marking the smallest increase in 3 months – as the Joblessness Rate maintains constant at 8.8 %.
EUR/USD currency trading systems signal: The market was expecting no change in rates but they were expecting some strong language from the ECB locking in another rate hike next month and this had been strongly declined. EUR and EUR crosses sold exceptionally hard and an almost four hundred point fall ensued. Support found at the earlier highs of 1.4500/20 and traders are initially bullish so long as this level maintains.
GBP/USD smart fx system signals: Although GBP/USD had been sold last night, extreme EUR/GBP selling on the ECB comments helped support the fall and GBP merely fell 100 pips. It needs to be mentioned that on the longer term time-frame, 1.6300-1.6400 was a extremely powerful level on resistance and currently might supply support, though short term selling pressure remains to be for the moment.
USD/JPY top forex trading system signals: USD/JPY went on to drift lower as the downtrend marches on. Worse than predicted US employment figures coupled with intense EUR/JPY and GBP/JPY selling assisted USD/JPY to the lows. With NFP, a worse than anticipated figure could very well see continuing downward pressure and traders are happy to keep on selling unless we break back up through 81.00.
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Friday, May 6th, 2011
The weaker than expected production and construction data might support the deficit of confidence in the united kingdom economy, particularly with anxieties that consumer spending will come under renewed strain. There will probably be elevated confidence that the Bank of England won’t increase interest rates this month which could reinforce the loss of yield support.
Sterling ought to nevertheless be spared from aggressive selling by a deficiency of confidence in the USD and Euro. The net risks specify additional measured losses for Sterling contrary to the us dollar with selling rallies still the best fundamental strategy. Immediate selling pressure is likely to be observed above 1.6550, nevertheless losses should be measured. The Euro offers very poor worth over the 0.90 level in opposition to Sterling.
EUR/USD metatrader broker forex strategy: In a daily graph the EUR/USD pair is unable to focus higher than the 1.4900 level. Nonetheless, following a minor pause we ought to be expecting further progress. As stated before, crack of the resistance level 1.4800 targeted the pair to 1.5150, which is November 2009 high. However, if the 1.4750 support level is shattered, we should expect a little correction.
USD/CHF mt4 broker forex strategies: In the course of yesterday’s trading the USD/CHF currency pair observed the target level 0.8570 and the inner wave structure of the fifth wave, in the 5th, became quite complete. If that’s the case, we’d assume a continual and strong correction from the reached low (0.8560). For the time being, the franc upside characteristics doesn’t look fatigued, which will keep the targets at the 82 figure level.
USD/JPY metatrader 4 forex trading strategies: Today the USD/JPY remains to be in a downtrend situation, the pair is currently stuck among the Support. 1 and the Support. 2 ( 80.52 – 80.36); even so, in between these two lines there is a 72 hrs low-level at the 80.46. If this level can be broken and the pair closes beneath that level, it will likely be heading down. Alternatively, you should observe the 80.55 level. If this level can be broken out and the pair closes above it, the downside situation for the USD/JPY is going to be kept.
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Friday, May 6th, 2011
The announcement that Bin Laden was in fact dead, spurred markets higher yesterday. Nonetheless, now the world is anxious about Taliban and Al Qaeda retaliating as participants of the militant organizations have promised to implement. Interpol instructed its practically 200 member countries to be on “full alert” right after the death of the al-Qaeda director in Pakistan. The U.S. won’t lower its fight versus the group and won’t cut back its attempts to stop terrorism, Secretary of State Hillary Clinton said Monday.
Additionally, much softer than expected data from New Zealand on Labor Costs and also relatively dovish and cautious statement from the Reserve Bank of Australia while they held the rate unchanged at 4.75% in the early hours, put a lid on the risk assets.
EUR/USD smart free accurate forex trading alerts: Patient bullish investors had a profitable day yesterday given that the Bin Laden news allowed acquiring the dip to become really lucrative. From here there is still bullish sentiment in front of Thursday’s ECB rate announcement and traders are satisfied playing the range. Simply a break back through 1.4750 may well generate a bearish signal and traders are very happy to be buyers except if that fails.
GBP/USD daily professional forex trading signals: Leading into the BoE rate determination on Thursday it seems like dejavu with the past month as the GBP battles to generate new highs as hedgers like the EUR at the present time. This being stated, traders are content to acquire dips and remain long GBP provided that 1.6600 support maintains but a crack of 1.6590 could produce a significantly bearish signal.
USD/JPY reliable free fx signal: USD/JPY originally started higher on the Bin Laden announcement though the rally was stymied as the sellers surfaced happy playing it on the short side on condition that 82.00 provides resistance. We open the Asian session upon vital support and traders nevertheless calling it lower as the JPY crosses (EUR/JPY and GBP/JPY) seem a little weighty equally.
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Wednesday, May 4th, 2011
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Tuesday, May 3rd, 2011
A dovish Federal Reserve and also new multi-year highs in the Dow Jones Industrial Average shaked the US Dollar to brand new lows against the Euro and other key counterparts, leaving hardly any anticipations of a endured USD recovery. Forex professionals demonstrate little attraction in low-yielding US Dollar opportunities, and indeed Commitment of Traders data confirmed Non-commercial traders at their most short USD ever since the Euro traded in direction of 1.60 in 2007.
The US Dollar continues to be a speculator’s favourite with record-low interest rates and little chance of US Federal Reserve rate increases over the near future. A active week for US fiscal event risk and international central bank rate actions could however form market signals for upcoming yield spreads and push major moves across critical fx pairs.
USD/JPY best forex trading signals: USD/JPY drifted lower nevertheless support was located around the prior lows of 81.40. We’re now at the crossroads in the USD/JPY with support so close on the downside it looks like being a matter of holding and moving back towards the 82.80 levels or alternately a bust of 81.30 offers a bearish signal and speculators are seeking to go with the break.
EUR/USD accurate and reliable fx trading signals: Patient investors are profitable traders and the buyers on the dip performed very well yesterday as USD negative opinions continued on the release of worse than expected GDP numbers. From here investors are still calling it higher and see any drop supported by the purchasers all the way down to 1.4700 utilizing the initial target as the psychological level of 1.5000 within the coming week.
GBP/USD best free fx trading alerts: We drifted lower in the overnight session back in the direction of the 1.6600/10 support and individuals were really content to be buyers on the dip. From this level, as long as 1.6600 holds, traders seem to be willing to be customers searching for it to initially test the previous highs of 1.6750 and additionally onwards to 1.6900 at some point next week. A crack of 1.6600 could alter this sentiment.
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Saturday, April 30th, 2011
In fx trading action, the Sterling produced another run for 1.6600 as the advanced 1st Quarter GDP report for the U.K. showed a 0.1/2 Percent expansion inside the rate of growth, however the deficiency of traction to test the yearly high (1.6598) is likely to keep the fx rate within a narrow range during the US session trade as the Federal Reserve is planned to announce its interest rate decision at 16:30 GMT.
As the U.K. tempts a double-dip recession, interest rate expectations have certainly gained speed throughout the overnight trade, with investors at this point pricing at least a 50bp rate hike over the following 12-months in accordance with Credit Suisse overnight index swaps, and also the Bank of England might experience increased pressures to start normalizing monetary policy over the forthcoming months as expansion and inflation speed up.
EUR/USD forex trading signals for metatrader brokers: Support and resistance is very important in the forex currency markets but yet once again the EUR located sturdy support at preceding resistance around 1.4500 before moving more than 200 pips to the topside as investors continue to price in even more rate increases in the EU. From here investors are still comfortable playing it through the long side providing that we remain above 1.4640/50.
GBP/USD fx broker metatrader 4 currency signals: The GBP once again is running higher nevertheless reasonably subdued as traders choose the higher yielding EUR. For the technical traders the Sterling appears to be a bull flag at the moment and traders are content trading it from the long side either acquiring the drop or purchasing the crack of 1.6520 hoping it to eventually crack over above 1.6600 in the forthcoming sessions.
USD/JPY mt4 best forex trading signals: The downhill trend goes on in the USD/JPY as individuals continue to exhibit negativeness towards the USD. The sell-off has been steady and speculators are still fine to sell rallies back in the direction of the 81.80/90 area looking for 81.00 in the approaching sessions. Merely a crack back above 82.00 can crank out favorable signals in the short term, nonetheless, be mindful of Bernanke’s speech.
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