| Having trouble viewing this email? Click here |
 |  |
| 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 Weekly Report | Markets Snapshot |
Dollar Extended Decline as Fed Stepped Closer to QE2, Euro the Biggest BeneficiaryDollar's selloff extended further last week after FOMC meeting as Fed explicitly talked about showed worry on deflation and the accompany statement showed that Fed is moving closer to second round of quantitative easing program. Dollar index dived sharply and closed below 80 level. Gold managed to ride on dollar's weakness and breached 1300 level to new record high. Meanwhile, DOW extended recent rally and is heading closer to 11000 level while risk appetite also pushed Aussie's bullish run further. Nevertheless, we'd like to point that Euro remained the main beneficiary of dollar's weakness as solid demand for Eurozone government bonds sales showed solid demand in spite of the neverending concern on peripheral Eurozone debts. Some points to the weak economic fundamentals and questioned the sustainability of Euro's rally. But in any case, Euro's strength should continue further in the short run. |    |
| Featured Technical Report | |
EUR/USD Weekly OutlookEUR/USD rose to as high as 1.3494 last week and the break of 1.3330 resistance confirms that whole rally from 1.1875 has resumed. Initial bias remains on the upside this week and further rise should be seen towards next target of 100% projection of 1.1875 to 1.3330 from 1.2587 at 1.4024, which is close to 1.4 psychological level. On the downside, below 1.3286 support will suggest that a short term top is formed and bring consolidations. But downside should be contained by 1.3018/3158 support zone and bring rally resumption. |
| Forex Brokers | |||||
|
| CitiFX Pro Forex Trader Survey | |
We're excited to announce the first ever industry-wide survey of forex traders to you. The project is sponsored by CitiFX Pro, and conducted in partnership with major online forex portals including us, Action Forex. We'd urge our readers to take part in the survey and tell the industry exactly what they want in terms of instruction, technology, pricing and methodology. Join us and voice out your opinions! Here is the link for the survey. |
| Special Reports | |
EURUSD's Rally As Anti-dollar Trade Appears OverextendedThe euro has outperformed major currencies since last week. Although news from peripheral European economies reignited concerns about sovereign risks in these countries and widened yield spreads, successful bond auctions alleviated the worries. Moreover, intervention on Japanese yen and heated speculations about Fed's expansion of QE measures have helped drive capitals to the single currency. Currently trading around the highest level in 5 months, EURUSD has surpassed 1.3220 (200-day MA) and 1.3330 (August high). The technical backdrop is bullish and will likely trigger further buying. While the single currency may rise further as weakness in US economic data may trigger the Fed to announce more easing policies later this year while the ECB will likely hold monetary stance unchanged, the euro's current rally has somehow overextended and caution is advised on long positions. Fed Paves The Way For Further EasingAt the September FOMC meeting, the Fed did not announce any new asset-buying program. Yet, the tone of the accompanying statement signaled that policymakers were turning to that direction. At the policy guidance paragraph, the Fed said that it will continue to 'monitor the economic outlook and financial developments and is prepared to provide additional accommodation if needed to support the economic recovery and to return inflation, over time, to levels consistent with its mandate'. Moreover, although the FOMC staff will not publish a new set of economic projections until November, the wordings in the statement indicate that both of growth and inflation forecasts are lowered. Japan's Unilateral Yen Intervention Is Not Going To SustainShortly after the re-election, Japan's Prime Minister Kan surprisingly conducted an intervention in the FX market by buying USD and selling JPY. The timing and the size of the intervention signaled the government's determination and commitment to curb yen's appreciation. The initial impact was encouraging as USDJPY rose more than 3% to 85.78 on September 15 from the low of 82.87 before the intervention and has stayed above 85 thereafter. The question now is whether the intervention is sustainable and if the unilateral intervention can defend the 82 level as implicitly stated by the government. |
| Suggested Readings | |
The Week in Review and Preview |
| |
| ||||||
No comments:
Post a Comment