Forex Analysis
Weekly CFTC Trader Positioning Data
• Risk aversion on the back of EM jitters drove a significant shift in currency positions this week. Investors shifts included short covering in JPY with increased long allocation to gold, EUR and GBP;
Weekly Forex Report
The RBNZ becomes vocal about the strength of the Kiwi As one of the economies that is deemed to be most likely to raise ratesover the next few quarters,
EURJPY – breaking critical 138.28 support; next major support is 135.51
A weekly reversal and weekly trend change is taking place. The reversal occurred where a measured move target aligned with a Fibonacci extension target.
USDJPY – bear triangle forming above key 101.85/77 support
The call for a corrective rally to 102.80/103.06 was realized via yesterday’s 102.89 high. The consolidation forming between 102-103 is showing the marks of a bear triangle.
EURUSD – vacuum of support below minor shelf at 1.3320/00.
Euro is unfolding lower as opined based on the choppy bear consolidation that completed at 1.3750. Longer-term trends from July are now clearly broken leaving only the 1.3508 lows as support before a deeper decline.
EUR Mid-day Analysis
The losses on the Euro chart this week have been significant this week and the economic report flow fromEurope overnight would seem to have left the Euro vulnerable to even more declines ahead.
CHF Mid-day Analysis
A downside tilt remains in place with the March Swiss early this morning sitting right on the priorsession’s low and also sitting at some of the lowest levels on the charts since January 23rd.
JPY Mid-day Analysis
The Yen has a slight bid this morning, but one can’t say that the Yen is set to see definitive flow of safehaven support from the emerging markets situation today.
USD Mid-day Analysis
The second Fed tapering move left the Dollar somewhat in vogue and the flow of economic informationfrom the Euro zone overnight temporarily added to the Dollar’s edge.
CAD Mid-day Analysis
Strong Dollar, weak stocks, generally weak economies and a sustained holiday in China,would seem to leave the bear camp in the Canadian in control.
GBP Mid-day Analysis
Even the Pound has lost its edge this week, as the trade saw the Pound to be somewhat inflated off avery definitive macro economic vibe around the middle of this month.
Central European Daily
CE currencies off their lows Scope for further monetary easing limited Although the CEE currencies were off their lows in the morning,