Forex Market
FX Daily Strategist: Europe
– EUR rally to take breather ahead of key events on Wednesday and Thursday Asian shares are broadly lower up to 1% lower, the losses are spread across sectors, suggesting this may be broad riskreduction ahead of key events rather than any specific catalyst.
FX G10 and EM Morning Trader Views
G10 EUR – Consolidation continues as the market awaits the next clues from FED and news from the German court ruling on the Euro rescue fund tomorrow. 1.2800 ish is setting up short term trend resistance from the recent high.
European FX Daily
– China new loans stronger than expected in August – Australia’s NAB business confidence index fell in August – Canadian housing data likely to be weak
Technical Analysis
The nokkie got it on the chin yesterday and a 7.40-7.45 test looks possible before realigning price action with downtrend again… EURSEK on the other hand confirmed mid-body resistance yesterday and looks ready to test nearby supports at 8.43 & 8.40…
FX Market Technical Research
EUR/USD: Consolidating Friday’s Break Higher. Consolidation below layers of resistance including the 200-DMA, falling daily trend line off late Feb highs and Friday’s high continues with an inside day to start the week.
EUR/USD Analysis
Closed in NY at $1.2757 after correcting back from an afternoon high at $1.2803 to $1.2755. Rate dipped to retest $1.2755 before slowly edging higher, the rate meeting initial resistance at $1.2770.
Asia Today: Waiting for Wednesday; Currencies steady, stocks weak
The mild risk-off mood that permeated through markets yesterday extended into today’s Asian session. We had a number of data points, but none were first-tier and had little impact on the day’s activity.
Asian Currencies Technicals
AUD/USD: 21 DMA Continues to cap recovery. The 21 DMA continues to cap the recovery from monthly lows with further resistance noted in the $1.0400-44 region.
FX Market Analysis
GBP: Opened early Europe at $1.5990, stg0.7993, GBP closed in NY Friday at $1.6010, the rate having been pressured to a high in this session of $1.6034 as the dollar was sold across the board following the release of weaker than forecast US NFP data (increasing speculation that this week’s FOMC may favour QE3).
FX G10 and EM Morning Trader Views
G10 EUR – Impressive price action post payrolls Friday, the sell off couldn’t get back below 1.2700 and the close above 1.2750 (range highs) suggests that mkt moved towards qe3 and is taking back further medium term shorts
FX Daily Strategist: Europe
– EURUSD hits 1.28 target. We lock in profit but maintain long EURJPY and EURCHF The combination of rising expectations for QE and the “europhoria” post-ECB pushed EURUSD above 1.2800. Given that we hit our target, we took profit on our long EURUSD recommendation and booked a 3.92% profit.
Technical Analysis
$ in general under pressure with $ index back at levels not seen since the spring. US bond yields basically unchanged (after a rather volatile session)sinc Friday, GOLD continues to climb and so does many commodities (CRB into a bear divergence now…!) and the YEN to strengthen (ag the greenback but also soon ag the […]