Technical Analysis – AUDUSD bullish in the near-term after hitting a fifteen-week high

Posted on February 24, 2017 at 8:14 am GMT

AUDUSD is currently more or less unchanged from the day’s open. Yesterday it recorded a fifteen-week high of 0.7740. Looking at the Ichimoku analysis, the positive alignment when the Tenkan-sen line (red) crossed the Kijun-sen (blue) in mid-January is still in place. This bullish short-term signal is reinforced by the RSI indicator, which is at currently at 64, well above the 50 neutral level. On the upside, yesterday’s high (0.7740) is expected to provide resistance. A successful break above it [..]


Asian Session – Gold at 3-month highs on softer dollar after Mnuchin comments

Posted on February 24, 2017 at 7:58 am GMT

Gold consolidated gains at a 3-month high as the US dollar was on track to end the week with losses. The greenback touched a 2-week low against the yen on Thursday after being weighed by disappointing US jobless claims data and US Treasury Secretary Steven Mnuchin’s remarks. The number of Americans applying for unemployment benefits increased by 6,000 to 244,000 in the week ending February 18 from the previous week’s revised total of 238,000. Expectations were for jobless claims to [..]


Asian Session – Euro recovers as French election concerns ease; dollar steadies after drop following FOMC minutes

Posted on February 23, 2017 at 8:11 am GMT

The US dollar fell sharply after the release of the FOMC minutes late on Wednesday. Despite saying that a rate hike would be appropriate ‘fairly soon’, the minutes of the January 31- February 1 Fed policy meeting did not pinpoint a March hike. Since the markets did not view the minutes as hawkish as was hoped for, the dollar was sold off, and it fell below the key 113-yen level briefly. In the minutes, there appeared to be a lack [..]


Technical Analysis – USDJPY neutral in the short- and medium-term

Posted on February 23, 2017 at 8:04 am GMT

USDJPY has been experiencing some minor losses since the day’s open after closing lower the day before. The RSI indicator is currently below but close to the 50 neutral level at 48. It has been around 50 over the last number of days of mostly sideways movement and relatively low intra-day volatility. The MACD histogram is painting a similar picture as it is slightly negative, but above the red signal line. The current level of the 50-day moving average (MA) [..]


European Session – Dollar picks up ahead of FOMC minutes; yen outperforms; pound weighed by data

Posted on February 22, 2017 at 3:18 pm GMT

The US dollar was stronger against most major currencies except against the yen, which broadly outperformed. The euro was weak on French election jitters. The main focus of the markets was on the upcoming FOMC minutes. The euro hit a fresh one month low against the dollar at 1.0493 after dipping below the key 1.05 level for the first time in six-weeks. The single currency was pressured mainly by political developments rather than by economic data. Concerns over the upcoming French [..]


Forex News – Mexican peso surges 2% after central bank launches hedge program to defend currency

Posted on February 22, 2017 at 2:48 pm GMT

The Mexican central bank, Banco de Mexico (Banxico), surprised the markets yesterday when it announced it is launching a $20 billion hedging program to stem further declines of the Mexican peso. The move is designed to act as an alternative to currency intervention without eating into foreign exchange reserves. By auctioning currency hedges, the central bank can use derivatives such as dollar swaps to intervene in the spot market. Banxico has been struggling to defend the Mexican peso, which has [..]


Technical Analysis – USDMXN bearish bias persists under 50-day moving average

Posted on February 22, 2017 at 11:14 am GMT

USDMXN weakness persists below the 50-day moving average. After consolidating just above support at 20.2007, the pair fell sharply below this level on Monday to reach a low of 19.9230. Since RSI is in bearish territory below 50, there is scope for further losses to target 19.5036, which is where the 200-day moving average currently lies. This 19.5036 level was tested as a resistance level back in October. A break of this support area would pressure USDMXN lower, towards 18.1518 [..]


Asian Session – Dollar falls against yen ahead of FOMC minutes; euro under pressure on political woes

Posted on February 22, 2017 at 8:34 am GMT

The dollar was weaker against the yen as markets await the FOMC minutes due later in the day for clues about the Fed’s views on interest rates. The euro remained under pressure by European political concerns. The yen was supported by comments from Bank of Japan Governor Haruhiko Kuroda who said that the chance of negative rates is low in the near future. Meanwhile, Japanese Finance Minister Taro Aso made similar remarks. The dollar slipped to an Asian session low [..]


Technical Analysis – GBPUSD looking neutral in the short-term

Posted on February 22, 2017 at 8:04 am GMT

GBPUSD is up from the day’s open. Should it finish the day higher it will mark the third straight day of gains for the pair. The RSI indicator is currently close to the 50 neutral level at 52. It’s been hovering in this area throughout the last number of days of relatively low intra-day volatility for the pair. The middle Bollinger line (a 20-day moving average) comes into view as immediate resistance to upside moves. Should this level be breached, [..]


European Session – Euro falls despite robust PMI numbers; Dollar broadly stronger

Posted on February 21, 2017 at 4:34 pm GMT

The most important economic releases for the day pertained to flash PMI estimates out of the Eurozone and the US, whilst the day had important central bank figures, such as the Bank of England’s Governor Mark Carney, appearing for a speech. The US dollar was gaining across the board today on rising expectations of a March Fed rate hike. The dollar gained against all six currencies that make up the dollar index as the index rose to 101.49, marking a [..]

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