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Bullish surge: The 4H chart shows cable rallying sharply during the 11/23 US trading session. It has already been channeling higher in the short-term but accelerated above the 1.60 handle, 50% retracement. It is now near the 1.6041, 61.8% retracement and a minor resistance pivot. As we approach 1.61, we are entering an area of structural resistance. It is more clearly shown [...]
Recent developments: As we begin a new week, let’s take a look at the Kiwi’s recent developments. As seen in the daily chart, NZD/USD has been rally since the May low of 0.7454 until the high in September of 0.8350. This rally broke above the 200-day SMA and more importantly, a declining trendline resistance that extended back to 0.8840 the 2011-high made on August 1 last year. Consolidation: Since [...]
The Great Britain pound rose today against the US dollar and the Japanese yen after the report showed an increasing number of mortgage approvals last month. The sterling remained weak versus the euro due to optimism about a bailout for Greece. The number of mortgage approvals increased from 31,544 in September to 33,039 in October. Analysts have expected an increase to about 32,300. The better-than-expected data sparked hopes that the United Kingdom is on track to recovery. Traders were [...]
USD/JPY 1H Chart 10:00AM EST 11/5/2012 6-month high: Following up with the previous update on USD/JPY, we see the pair coming off a 6-month high after rallying to80.66. It ended the week and starts this week (11/5) with a throwback that broke below a rising trendline that has held price action bullish since October 30. Momentum: The bullish momentum [...]
It is often said that chart analysis is both an art and a science. One component of technical analysis includes the study of patterns, which is simply identifying the formations that markets etch on the charts as they move up and down and back and forth. BASIC PREMISE One of the premises of technical [...]
The Brazilian real rose today amid the positive sentiment on the Forex market and on speculations that data will show an increase of Brazil’s inflation. Analysts estimated that the IPCA inflation index increased to 5.44 percent in October from a year ago, accelerating from September’s 5.28 percent. The government data will be released tomorrow. The general market mood was also positive. Europe’s fundamental data was not particularly good today, but not [...]
The South African rand rose today as it followed gains of raw materials ahead of the presidential election in the United States of America today. The positive outlook for US fundamentals also contributed for the gains of the rand. Earlier, riskier assets were a bit soft because of uncertainty caused by the US election. Today, the market sentiment has turned. The Standard & Poor’s GSCI Index of commodities climbed as much as 1.1 percent, the highest level since October 9. [...]
Australian dollar is getting a boost today, heading higher after the Bank of Japan announced a plan to further ease the situation for the yen. The move is expected to help the Japanese economy, and the Australian dollar is getting a boost, similar to the gains seen at the end of last week with the quantitative easing announcement from the United States. Aussie is seeing some support after losing ground earlier this week. Yesterday, the news about [...]
Good morning! Just a quick update on yesterday’s setups: Yesterday – “The deeper setbacks in the EURUSD and AUDUSD are tempting but the NZDUSD is the cleanest of the setups. The EURUSD decline stalled just shy of 12900 today. The decline would consist of 2 equal legs from the top at 12896 but the 9/12 [...]
Japanese yen is strengthening as risk appetite fades. Lackluster economic data, continued eurozone concerns, and general risk aversion are all sending Forex traders to safe havens like the yen. For a time, the Japanese yen was weaker on the expectation that the Bank of Japan would increase its easing efforts. Announcements that more quantitative easing would be used as economic stimulus in Japan followed the dramatic announcement of unlimited easing [...]