 |  |
| Action Insight | Candlesticks Trades | Markets Summary | Action Bias | Top Movers | Daily Technicals |
| Calendar | Elliott Wave Trades | Markets Volatility | Pivot Points | Heat Map | Daily Fundamentals |
| Action Insight Market Overview | Markets Snapshot |
Daily Report: Dollar Pressing Trend Line Support, Reversal or Penetration?Risk rally is still the major driving force in the forex markets with dollar and yen generally under pressure. European stocks open mildly higher following broad based rally in Asian equities while crude oil is also firm above 75 level. On the other hand, dollar index is soft below 84 level and continues to dip lower. We'd like to point out again that European majors lagged behind commodity currencies. EUR/USD has been losing momentum since Wednesday while GBP/USD engaged in range trading. Both pairs are close to key trend line resistance and we might see a reversal soon. |
|
| Featured Technical Report | |
EUR/USD Daily OutlookDaily Pivots: (S1) 1.2640; (P) 1.2676 (R1) 1.2731; More. EUR/USD edges higher to 1.2721 today but is containing to lose upside momentum. As noted before, we'd expect strong resistance at medium term falling trend line (now at 1.2730) to conclude the corrective rise from 1.1875 and bring reversal. Below 1.2479 minor support will flip intraday bias back to the downside. Further break of 1.2149 support will indicate that recovery from 1.1875 is finished and will target a retest on 1.1875 low. However, note that sustained trading above the trend line resistance will dampen our view and pave the way for stronger rally to next key resistance at 1.3266. |
| Forex Brokers | ||||||
|
| Special Reports |
ECB Left Policy Rates Unchanged, Feeling no Surprise on Money Market Rate HikesThe ECB announced to keep the main refinancing rate at 1% in July. At the accompanying statement, President Trichet reiterated that the current key ECB interest rates as 'appropriate' while the risks to the economic outlook are 'broadly balanced', in an environment of high uncertainty. Austere Fiscal Policies Supporting The Pound Will Weigh On It LaterThe emergency Budget released on June 22 demonstrated the new UK government's commitments to reduce the country's huge deficits. The aggressive fiscal policy has reduced the risk premium of sterling and is a key factor for the currency's strength against the dollar and, to a greater extent, the euro. While GBP may remain firm in the near-term, risk aversion and lower growth expectations should weigh on the currency in the medium-term. Yet, although the pound may weaken against the dollar in coming months, it should stay relatively strong against the euro. Regarding monetary policy, the BOE is at a dilemma in making rate decisions as austere fiscal measures are poised to affect growth but increase inflationary pressure through VAT hike. While the debate on whether to hike or not will continue in coming BOE meetings we expect policymakers will leave rates unchanged for the rest of the year. This should also limit upside of GBPUSD. |
| Economic Indicators Update |
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Candlesticks and Ichimoku Intraday Trade Ideas | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade Idea: USD/CHF – Sell at 1.0590Dollar's recovery after holding above yesterday's low at 1.0481 suggests further consolidation would be seen and retracement to the Ichimoku cloud top (now at 1.0570) is likely, however, price should falter well below resistance at 1.0637 and bring another decline later. Trade Idea: EUR/USD – Buy at 1.2620Euro's firmness after rising to 1.2703 this morning and recent upmove should extend further gain towards 1.2739 (61.8% projection 1.2193-1.2613 measuring from 1.2479), however, loss of near term upward momentum should prevent sharp move beyond there and reckon 1.2784 (50% Fibonacci retracement of 1.3692 to 1.1876) would hold from here, bring correction later. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Suggested Readings | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fundamental Highlights
Technical Highlights | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| ||||||
No comments:
Post a Comment