Daily Forex Analysis

 

Today's Forex Analysis summary

The Australian Dollar could be looking at a sharp sell-off as signs are out there that investors are focusing more on the Australian economy than the higher yields offered by the market. Even the stock market rally on Wednesday could not encourage risk hungry traders to go after the higher yielding AUD USD. This is clearly as sign of developing weakness and is likely to trigger further downside pressure as traders are shifting their needs from return on capital to return of capital.

The NZD USD is facing similar issues as the Australian Dollar. With the economy showing signs of weakness, investors know the Reserve Bank of New Zealand has to take action to prevent the on-going recession from deepening and widening. Most traders are calling for quantitative easing or an intervention as the best short-term solution. The RBA may cut rates again since they have room to do so, but the speed of the decline in the economy will most likely counter-act a slow-moving interest rate reduction.

The U.S. Dollar weakened versus the Japanese Yen on Wednesday. Traders were mixed in their opinion as to why the USD JPY fell. Some felt it was caused by flight-to-quality buying because of lingering U.S. banking issues. Others felt that although Japan’s exports were down last month, they were slightly better than last month. This news was interpreted as the start of possible bottoming action

The Canadian Dollar closed lower today in a volatile two-sided trade. Several times throughout the New York session, the market traded on the plus side only to be met with selling pressure which drove it lower. Traders seemed reluctant to take a major position ahead of an important Bank of Canada announcement report

The news that the U.K. budget deficit would soar to 175 billion Pounds encouraged selling pressure all day in the GBP USD. Technically the daily chart main trend is down.

By ForexHound.com the portal for Analysis, Education and exclusive timely market Gann Analysis

Disclaimer: Trading foreign exchange on the margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore should not invest money that you cannot afford to lose.

 

Forex Analysis Summary

GBP/USD:

Get a brief summary recommendation - strong Buy, Buy, strong Sell, Sell or Neutral signals for the GBP/USD. Gain access to a detailed technical analysis through moving averages buy/sell signals (simple and exponential for 5,10,20,50,100 and 200 periods) and common chart indicators (RSI, Stochastics, StochRSI, MACD, ADX, CCI, ROC, Williams %R, Ultimate and more) Buy, Sell, Overbought, Oversold or Neutral signals . Also - pivot points levels for Standard, Fibonacci, Camarilla, Woodie's and Demark's are supplied. All technical studies are available in different time frames.

EUR/USD:

Get a brief summary recommendation - strong Buy, Buy, strong Sell, Sell or Neutral signals for the EUR/USD. Gain access to a detailed technical analysis through moving averages buy/sell signals (simple and exponential for 5,10,20,50,100 and 200 periods) and common chart indicators (RSI, Stochastics, StochRSI, MACD, ADX, CCI, ROC, Williams %R, Ultimate and more) Buy, Sell, Overbought, Oversold or Neutral signals . Also - pivot points levels for Standard, Fibonacci, Camarilla, Woodie's and Demark's are supplied. All technical studies are available in different time frames.

USD/JPY:

Get a brief summary recommendation - strong Buy, Buy, strong Sell, Sell or Neutral signals for the USD/JPY. Gain access to a detailed technical analysis through moving averages buy/sell signals (simple and exponential for 5,10,20,50,100 and 200 periods) and common chart indicators (RSI, Stochastics, StochRSI, MACD, ADX, CCI, ROC, Williams %R, Ultimate and more) Buy, Sell, Overbought, Oversold or Neutral signals . Also - pivot points levels for Standard, Fibonacci, Camarilla, Woodie's and Demark's are supplied. All technical studies are available in different time frames.

 

Dollar/Yen continued the decreasing movement yesterday. The currency couple climbed to the top 95.88, than dropped down to the bottom 94.90, and closed the day at 95.19. On the 1 hour chart is seen that the triangle formation was broken downwards as a support, suggesting potential descending views. Signals are downwards in the short term with possible testing of the 94.80 and 93.70 support levels. The CCI indicator is in the oversold area and upwards of 1 hour chart, suggesting possible spring upwards with testing of the nearest 95.90 resistance. Break above this level may trigger further bullish pressure.

Technical resistance levels: 95.90 97.25 98.50

Technical support levels: 94.80 93.70 92.45

 

Crude oil jumped 2.3 percent to $70.23 a barrel in New York yesterday, a level not seen since June 18. A gauge of six primary metals in London advanced for a third day to the highest level in two weeks.

EUR/USD is holding on new support..1.4045. It has a new resistance line at 1.4350

 

On one of today's talk,

The euro-area economy is showing signs of stabilization after shrinking at the fastest pace in at least 15 years in the first quarter. Manufacturing and service industries contracted at the slowest pace in nine months in June and Germany’s Ifo index rose for a third month, according to data last week.

Europe’s largest maker of semiconductor equipment, earlier this month said it will return to regular working hours for its 1,100 Dutch factory employees. It also forecast that sales will rise in the second half compared with the previous six months

 

It seems that the EUR/USD has new support ground at 1.4100

 

Hi,

Good report on Forex Analysis !