Technical Analysis – GBPUSD turns to sideways channel in Bollinger Band; neutral bias in short term

Posted on July 17, 2018 at 6:36 am GMT

GBPUSD has been trading in a neutral mode over the last couple of days after the rebound on the lower Bollinger Band near 1.3100 on July 13. The price seems to be losing its strong negative momentum as the Bollinger Band is narrowing and suggests that the next movement will be sideways. It is worth mentioning that the cable is still developing below the 23.6% Fibonacci retracement of the downleg from 1.4375 to 1.3050, around 1.3360. In the daily timeframe, the technical indicators are recommending [..]


UK jobs and wage figures eyed by Pound amid Brexit turmoil – Forex News Preview

Posted on July 16, 2018 at 3:03 pm GMT

The UK’s Office for National Statistics will publish its latest stats on the labour market on Tuesday at 08:30 GMT. The report will be the first of three major releases out of the UK this week, which come just a fortnight before the Bank of England’s August monetary policy meeting. With rate hike expectations rising to above 70% in recent weeks, those odds could be given an additional boost if this week’s data further reinforces the view that the first [..]


US Open Preview – Dollar weakens ahead of US retail sales; oil on the backfoot

Posted on July 16, 2018 at 12:01 pm GMT

Here are the latest developments in global markets: FOREX: The US dollar was trading below the 6-month high of 112.79 today against the Japanese yen, but managed to add some gains to its daily performance (+0.02%) ahead of the release of the US retail sales later in the day. The dollar index, which gauges the greenback’s strength versus six major currencies, moved lower by 0.24%. Pound/dollar rebounded sharply from near the 1.3101 barrier on Friday and drove the price even further to 1.3265 (+0.24%) on Monday. Meanwhile, euro/dollar climbed [..]


Technical Analysis – EURUSD surpasses SMAs in near-term; 23.6% Fibonacci acts as strong obstacle for bears

Posted on July 16, 2018 at 6:50 am GMT

EURUSD remains below the strong resistance level of the 23.6% Fibonacci retracement level around 1.1760 of the downleg from 1.2550 to 1.1510. However, since yesterday the world’s most traded currency surpassed the 20- and 40-simple moving averages (SMAs) in the daily timeframe, suggesting a possible upside correction. From the technical point of view, the technical indicators are endorsing the bullish bias but are still moving with weak momentum. The RSI indicator is holding slightly above the threshold of 50, while the MACD oscillator is [..]


Technical Analysis – GBPJPY retreats from 1 ½-month highs; 20-day MA strong support

Posted on July 13, 2018 at 1:28 pm GMT

GBPJPY formed a fresh top at the 1 ½-year high of 148.88 today in the four-hour chart before reversing lower to stop at the 20-period moving average which for once again stood a wall to bearish actions, holding the upward bias in play. The RSI and the MACD have both weakened, with the former dropping towards its neutral threshold of 50 and the latter easing below its red signal line. Still, upside risks have not been faded out yet as both indicators continue to fluctuate [..]


Week Ahead – China GDP eyed amid escalating trade row; inflation data to dominate

Posted on July 13, 2018 at 12:43 pm GMT

China will publish second quarter growth figures next week, putting the focus on China’s economy which has been under attack by the Trump administration. Inflation numbers from Canada, Japan, New Zealand and the United Kingdom will also come under the spotlight, as well as employment reports out of Australia and the UK. It will be a quieter week for the United States where only a handful of releases are due, but investors will be watching for President Trump’s next move [..]


Technical Analysis – USDCAD turns to consolidation but maintains upward pattern

Posted on July 13, 2018 at 6:50 am GMT

USDCAD turned neutral after its downfall from the 1-year high of 1.3385, finding support at the uptrend line it started building in mid- April. In the short-term, consolidation is likely to be continued as the RSI has flattened slightly above its neutral threshold of 50 and the MACD has paused its downward move near zero, while the 20-day moving average has lost steam as well. On the upside, the area between 1.3180 and 1.3203, outlined by the 23.6% Fibonacci retracement [..]


Technical Analysis – USDJPY gains appeal above 112; golden cross eyed

Posted on July 12, 2018 at 3:40 pm GMT

USDJPY managed to resume its bullish pattern started at the end of March from 104.62, hitting a fresh six-month high of 112.61 on Thursday. The market will likely hold the uptrend line intact as long as the price continues to move above its moving averages and should the 50-day (simple) moving average (MA) successfully complete its bullish crossover with the 200-day MA, the upward movement could stretch into the longer term. Yet, the RSI supports that the rally is overdone as the index has [..]


ECB minutes unlikely to deviate from recent language; euro capped by dovish path – Forex News Preview

Posted on July 11, 2018 at 2:39 pm GMT

The European Central Bank will publish the accounts of its June 13-14 monetary policy meeting on Thursday at 11:30 GMT, when details of the discussion to end the Bank’s massive asset purchase program (APP) will be revealed. While a decision on winding down the bond-buying program was not anticipated by many to come as early as the June meeting, the bigger surprise came from the ECB’s rate path forecast, with the first rate hike pushed out until after the summer [..]


US inflation to edge closer to 3% but unlikely to alter Fed policy – Forex News Preview

Posted on July 11, 2018 at 2:16 pm GMT

Consumer prices in the United States are expected to rise at the fastest pace in nearly 6½ years in June, maintaining the steady recovery in prices after a brief spell of deflation in 2015. After yet another muted wage growth figure in June, investors will be watching the CPI release on Thursday at 12:30 GMT for possible signs of an acceleration in consumer price inflation. While the Federal Reserve would likely overlook any temporary spike in inflation, the dollar could [..]