Forex Market

FX Market Technical Research

EUR/USD: Still Testing Bollinger Band. The pair has made a significant break above the 61.8% retracement level, which had capped at $1.2444 and now turns resistance.

GBP/USD Analysis

Closed in NY at $1.5858 after correcting back from a NY recovery high of $1.5891 (the rate having seen highs earlier in Europe at $1.5912).

EUR/USD Analysis

Closed in NY at $1.2563, off NY rally highs of $1.2590, with traders noting that a large offer was taken out at this level.

Asian Currencies Technicals

AUD/USD: Pressure remains on initial support. The $1.0540-45 region capped the bounce perfectly and remains the pivot point with a close above needed to shift focus higher.

Today’s highlights: * EUR/GBP: The corrective bounce continues, but we still expect .7930/64 to cap to maintain the medium-term downtrend. * EUR/JPY: A break of 97.73/72 is needed to ease further recovery strength to 100.00/01, ahead of 100.72 where we would expect renewed selling.

FX Daily Strategist: US

*FX to yet price QE3; EURUSD to accelerate towards 1.2700 into next week As anticipated, the FOMC minutes yesterday came in on the dovish side invigorating QE3 expectations. USD has been hurt vs. G10 FX, but more so against Asian and CEMEA FX.

FX Market Analysis

EUR: Opened early Europe at $1.2540, Euro-dollar closed in NY at $1.2529 after rate had been driven to extended recovery highs of $1.2539, from earlier session lows of $1.2431, following the release of dovish FOMC Minutes.

We didn’t start the fire, but we’ll fuel it! FOMC over reaction?

There is plenty to talk about this morning and yet nothing overtly new in the scheme of things. What was supposed to be a non-event last night turned out to be the lighting of a very short fuse and ensuing USD sales.

FX Daily Majors

Today’s highlights: * EURUSD: Breakout above 1.2444/79 key resistance results in an acceleration higher towards the more critical cluster of Fibonacci hurdles at 1.2593/8, which should cap.

FX Daily Strategist: Europe

* FX to more clearly price in QE3; EURUSD the best vehicle at present As anticipated, the FOMC minutes yesterday came in on the dovish side and saw the USD weaken against both EUR and JPY. It now appears that the markets are truly beginning to ponder QE3 more seriously;

European FX Daily

*Fed minutes drive equities stronger and the USD weaker * China flash PMI weakened in August

Technical Analysis

EUR/USD peaking? Return of the yen! Gold shining… EUR/USD Time to resell?… USD/JPY Back on track lower… EUR/SEK Congestion/correction… USD/SEK Drifting down from support… EUR/NOK Upside pressure mounting… NOK/SEK Base, triangle or flag?