31 / 12 / 2015 | Technical Analysis

EUR/GBP: Major Levels 0.7380 and 0.7354

European Session
The EUR/GBP pair has been ranging between the levels of 0.7408 and 0.7349, since the 29th of December 2015.

On Wednesday, the pair initially rose up to 0.7387 and then fall down to 0.7349 to end up forming a hammer. Today, the pair moved on the sidelines between the levels of 0.7379 and 0.7354. In the event where the sellers keep exerting heavy pressures and the price breaks below 0.7349, the pair could decelerate down to 0.7344 and 0.7307 in extension.

Conversely, in the scenario where the price attempts to test yesterday’s highs again and the price breaks above 0.7382, the pair could rise up to 0.7388 and 0.7408 respectively.
 



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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30 / 12 / 2015 | Market News

Greenback holds gains in subdued trade

The U.S. dollar remained strengthened against its major rivals, amid thin trading volumes ahead of the New Year celebration.

A report released by the U.S. National Association of Realtors revealed that its pending home sales index fell by 0.9% in November, way below anticipations for a 0.5% rise. Pending home sales in October inched up 0.4%, whose figure was upwardly revised from a 0.2% gain.

The greenback remained underpinned following the Conference Board’s report a day before, indicating that its consumer confidence index inched up to 96.5 this month from the upwardly revised figure of 92.6 in November. The median estimate called for an increase to 93.8 this month. 

Another report released by the Bureau of Economic Analysis showed that the U.S. goods trade deficit expanded to $60.5 billion in November, compared to $58.41 billion a month earlier. Economists anticipated the trade deficit to widen to $60.90 billion.

The euro reached 1.0944 during the North American early trade, the session high, to subsequently consolidate at 1.0926. The major was likely to find support at 1.0868 and resistance at 1.0994. 

Earlier on the same day, preliminary statistics indicated that Spain’s consumer price index dropped by 0.3% in December, against expectations for a 0.1% fall, following a gain of 0.4% in November.

Elsewhere, the dollar ticked up against the sterling, with GBP/USD losing 0.11% to trade at 1.4804, while the single currency lost ground against its counterpart, with EUR/GBP falling 0.14% to 0.7361. Official statistics from the U.K. National Building Society showed that home prices advanced by 0.8% this month, above expectations for a 0.5% rise and after a gain of 0.1% in November. 

In the meantime, the greenback was steady against the yen, trading at 120.51, but lower against the franc, with USD/CHF sliding 0.28% at 0.9901.

The Aussie dollar was steady, with the AUD/USD pair trading at 0.7291, whereas the Kiwi lost ground against the yen, with NZD/USD falling 0.27% to 0.6849.

Meanwhile, the greenback was also up against its Canadian counterpart, with USD/CAD gaining 0.30% at 1.3882. The commodities-driven Loonie was under pressure as oil prices fell amid persisting concerns over a global oversupply and lack of demand.
 
Crude oil futures for February delivery inched down 2.55% at $36.92 during the European trade, hovering over the 11-year low of $35.98 reached on the 22nd of December 2015.

The U.S. dollar index, which tracks the greenbacks performance against a group of sic major rivals, rose 0.15% at 98.38. 
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30 / 12 / 2015 | Technical Analysis

EUR/CAD: Today’s Major Levels 1.5109 and 1.5221

North America Session
The EUR/CAD pair has been moving downwards, since the 22nd of November 2015, with the bears leading the price from as high as 1.5322 to as low as 1.4941.

The single currency felt aggressively at the early US session on Tuesday from 1.5295 down to 1.5089, but the pair upward today at the 1.5217 level. In the event that the buyers manage to gain enough momentum to push the price to break above 1.5232, profit targets could be set at 1.5322. 

Conversely, in the scenario where the sellers resume their downward activity and the price breaks below 1.5087, the pair could go down to 1.5030 and 1.4941 in extension.

 



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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30 / 12 / 2015 | Technical Analysis

USD/CHF: Major Levels 0.9933 and 0.9906

European Session
The USD/CHF pair has been trading higher since the 24th of December 2015, with the price travelling from as low as 0.9852 to as high as 0.9943.

The pair surged during the course of the day on Tuesday, hitting the high of 0.9943, after initially consolidating between the levels of 0.9895 and 0.9862. Today, the pair fell lower, with the bearish pressures registered from as high as 0.9933 to as low as 0.9906. In the event that the sellers keep exerting strong pressures and the price breaks below 0.9906, profit targets could be set at 0.9988 and 0.9852 in extension.

Conversely, in the scenario where the price attempts to break once again to the upside, the pair could go up to 0.9943 and 0.9991 respectively.
 



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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29 / 12 / 2015 | Technical Analysis

EUR/USD: Today’s Major Levels 1.0991 and 1.0899

North American Session
The EUR/USD pair has been oscillating since the 23rd of December 2015, with the price travelling between the levels of 1.0991 and 1.0869.

During the course of the day on Tuesday, the pair consolidated between the levels of 1.0992 and 1.0956. Today, the pair kept moving on the sidelines initially to subsequently dive aggressively down to 1.0899, testing the 1.09 handle, after the release of upbeat U.S. consumer confidence and goods trade deficit data. In the event that the sellers keep forcing the pair lower and the price breaks below 1.0899, the pair could decelerate down to 1.0869 and 1.0794 in extension.

Alternatively, in the scenario where the price attempts to bounce back up and breaks above 1.0938, the pair could escalate up to 1.0991 and 1.1008 respectively.  
 



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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29 / 12 / 2015 | Market News

Dollar regains some ground after positive U.S. data

The dollar regained some ground against the other major currencies on Tuesday, after data indicated that the U.S. goods trade deficit extended less-than-expected in November, although during the last week of the year, trading volumes are expected to remain light. 

Missing analysts expectation for $60.90 billion in November for the trade deficit to widen, the U.S. Bureau of Economic Analysis reported that the goods trade deficit widened to $60.50 billion last month from $58.41 billion in October.

Market participants were still eyeing a report on U.S. consumer confidence due later in the day after mixed U.S. economic reports released last week failed to offer clues as to how fast the U.S. central bank will raise interest rates next year.

Investors are now focusing on the pace of future rate increases, keeping  out of the way the first U.S. rate hike since 2006.  

Elsewhere, the single currency slid 0.31% against the dollar, with EUR/USD to trade at 1.0934.

The dollar pushed higher against the pound and the Swiss franc, with GBP/USD down 0.61% at 1.4791 and with USD/CHF climbing 0.44% to 0.9927.

The Australian and New Zealand dollars were stronger, with AUD/USD up 0.45% at 0.7282 and with NZD/USD rising 0.34% to 0.6870.

Meanwhile, both USD/CAD and USD/JPY held steady at 1.3898 and at 120.42, accordingly. 

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.34% at 98.32, off the previous session’s 1-week low of 97.84.
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29 / 12 / 2015 | Technical Analysis

EUR/GBP: Major Levels 0.7374 and 0.7352

European Session
The EUR/GBP pair has been trending downwards since the 22th of December 2015, with the bears leading the price from as high as 0.7416 to as low as 0.7352.   

During the course of the day on Tuesday the pair fell aggressively from 0.7416 down to 0.7307. In the scenario where the buyers manage to push the pair higher and the price breaks above 0.7376, the pair could rise up to 0.7391 and 0.74169 in extension.

In the event that the sellers manage force the price below 0.7338, the pair could decelerate down to 0.7315 and 0.7291 in extension.     
  
 


Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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28 / 12 / 2015 | Weekly Report

Greenback drifted lower against the euro and yen

The dollar edged down against the euro and yen in a subdued trading day amid the Christmas Day on Thursday, although loses were limited as market participants were reluctant to make any major moves ahead of the end of the year. 

The U.S. dollar index which tracks the greenback’s performance against a group of six other counterparts, ended the day at 98.02, losing 0.72% for the week. The index declined to more than one-week trough of 97.92 earlier on the Christmas Eve, as traders locked profits on their bullish dollar positions, following the Fed’s much-anticipated rate hike a week earlier. 

The greenback dropped 1% against the single currency on the week, with EUR/USD settling at 1.0963, while falling 0.66% against the yen at 120.28, a level that has not been reached since the 2nd of November 2015.

The U.S. economic reports that were released throughout the week were mixed, thus failing to offer clear signals as to how fast the Federal Reserve will hike rates in 2015. Reports on Tuesday revealed that the economy grew 2.0% from July to September, a figure that was downwardly revised from a preliminary forecast of 2.1%, although exceeding anticipations of 1.9%. 

A day earlier, an official statistic released showed that U.S. core capital goods orders, an important indication of private-sector business investment, slid 0.4% in November, whereas shipments of core capital goods, an indication of quarterly economic grow fell 0.5%. 

In the meantime, separate reports indicated that initial jobless claims dropped more than anticipated last week, personal spending ticked up for the eight consecutive month last month, while consumer sentiment rose to a five-month high in December.

U.S. oil priced advanced for the fourth straight session on the same day, piling up gains of 10% for the week, as a surprising drop in domestic oil stockpiles fueled sentiment. 

Moving on to the last week of 2015, trading volumes are anticipated to remain low, as many traders are closing positions due to the festive period, thus reducing liquidity and increasing volatility. 

Attention will be shifted to the U.S., as it is due to release important statistics on consumer confidence, pending home sales and jobless claims, as markets will be looking for further clues on the health of the economy and the pace of future rate hikes.
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28 / 12 / 2015 | Technical Analysis

USD/JPY: Today’s Major Levels 120.17 and 120.63

North American Session
The USD/JPY pair has been trending downwards since the 18th of December 2015, with the bears leading the price from as high as 123.53 to as low as 120.16.  

During the Asian session, the price rise from 120.17 to 120.63. In the scenario where the buyers manage to push the pair higher and the price breaks above 121.46, the pair could rise up to 121.85 and 122.25 in extension.

In the event that the sellers manage force the price below 120.16, the pair could decelerate down to 118.36.    
  


 
Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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28 / 12 / 2015 | Technical Analysis

GBP/USD: Consolidation Noticed Between 1.4925 and 1.4907

European Session
The GBP/USD pair has been moving upwards since the 22nd of December 2015, with the bulls leading the price from as low as 1.4804 to as high as 1.4942.

During the course of the day on Thursday, the pair advanced from 1.4857 up to 1.4942. Today, the pair consolidated between the levels of 1.4925 and 1.4907. Taking into consideration that there is significant resistance at 1.4942, the pair could be forced back lower. In the event that the price manages to break below 1.4875, the pair could reach 1.4857 and 1.4808 respectively.

Alternatively, in the scenario where the price gains enough momentum to break above 1.4942, the market could travel up to 1.4951 and 1.4985 respectively.
 



Please note: The content in this daily technical analysis article should not be taken as investment advice. It comprises our personal view.
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