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Quotes from RBC Capital Markets:
-GBP: UK manufacturing PMI is the first UK PMI release for July. With new orders, export orders, and employment components all increasing further into expansionary territory last month, our economists think that the risks are skewed to an upside surprise (cons 57.2, prior 57.5). Cable is right on support at the 100dma, which comes in at 1.6859 today.
Published: 2014-08-01 06:55:00 UTC+00
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Quotes from RBC Capital Markets:
-USD: The market is looking for +230K for today’s headline payrolls and 227K for private payrolls gains (RBC +210K for both). Despite a hiring pace that remains lacklustre, firm net payroll gains can still be had on the back of continued improvement on the separations side of the equation. We look for an unemployment rate of 6.0% from 6.1% prior (consensus 6.1%).
-Looking at market reactions over the last few months: our US rates team notes that both the June and April reports came in with very strong headline gains (+288k) and well above consensus (+73k and +70k respectively) but only produced kneejerk reactions of about 6bps in UST10s.
-Perhaps even more surprising is that these reactions faded throughout the day-in the case of the April report, 10s actually closed lower in yield. As always, what matters more to us in the report will be the details on the wage pie.
Published: 2014-08-01 06:54:00 UTC+00
Talking Points:
The spotlight is firmly pointed at July’s US Employment figures through the end of the trading week. Consensus forecasts are penciling in a 230,000 increase in nonfarm payrolls, marking a slight slowdown compared with the 288,000 jobs gain recorded in June. Worrying cues from PMI data produced by Markit Economics open the door for a downside surprise however.
The research firm reported that the pace of manufacturing employment growth eased for the first time since April in July, marking the smallest increase in 10 months. On the service sector side of the equation, Markit said the rate of job creation markedly eased this month compared with June.
A soft reading may fuel speculation that the time gap between the end of QE3 asset purchases in October and the first Fed interest rate hike will be a relatively long one, weighing on the US Dollar after the benchmark unit soared to a new 4-month high against its leading counterparts yesterday.
The UK Manufacturing PMI figure headlines the European data docket. Expectations point to a narrow slowdown in the pace of factory-sector growth, with the index slipping to 57.2 in July after printing at a seven-month high of 57.5 in June.
UK data flow has increasingly deteriorated relative to consensus forecasts since late February, hinting analysts have tended to over-estimate the resilience of the economy and opening the door for a downside surprise. Such an outcome may undermine BOE interest rate hike bets and weigh on British Pound. Follow-through may be limited however, with traders unwilling to commit to a directional bias until after US jobs data is in the rearview mirror.
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Asia Session
European Session
Critical Levels
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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Talking Points:
Dollar Close to Full Blown Run on Risk, Rate Shift
The S&P 500 dropped 2 percent and the VIX Volatility Index surged 27 percent this past session. Given the quiet nature of the financial markets lately, this drama raised investors’ anxiety that the quiet advance in capital markets may be coming to a destructive end. For the US Dollar – which represents a safe haven with particular clout when liquidity is prized above all else – the deeper the concern, the better the performance. Yet, in Thursday’s commotion, the greenback didn’t display the same degree of impact that the US equity benchmarks offered. Though the Dow Jones FXCM Dollar Index (ticker = USDollar) advanced for the 12th time in 15 trading days and the currency gained against most counterparts, the progress was modest. Even more unusual, the FX market’s most sensitive risk barometer – the richly priced Yen-based carry trade – barely moved on the day.
Market-wide downdrafts in speculative position over the past three years have been few and far between. In fact, the S&P 500 has not experienced a 10 percent correction in 660 trading days. That said, bouts of ‘volatility’ have occurred with some level of regularity. Usually following some event risk and/or isolated to one or a few asset classes, these spikes in fear have repeatedly acted as a staging ground for traders to jump in on a mature trend and sop up short-term risk premium. Tipping the scales on complacency fueled by low rates of return and historically low volatility (both owing heavily to stimulus efforts) is difficult. And yet, it is inevitable. In this particular groundswell, we are seeing a gradual and consistent rise volatility measures and spreads rather than a quickly deflated surge. Consistency in this disquiet is the bane of contentedness. Friday’s scheduled event risk could extend the disruption and move it closer to permanence.
Though there are a number of calendar items ahead, dollar traders and speculators amongst all asset classes will be focusing on the combination of the July labor figures and June PCE inflation data. From a volatility perspective, the jobs figures can be interpreted as an economic activity measure (disappointment unnerving the long-only crowd) or a monetary policy cue (Fed moves closer to removing the same stimulus that helped foster the five-year rally). For the dollar, a true tack on ‘risk aversion’ would offer the greatest overall influence. That said, the rate impact is the more consistent and thereby capable theme. Steady job growth and price pressures reinforce a mid-2015 FOMC hike.
Euro Traders Eye Volatility, Harden to Stimulus Concerns
The Euro’s three avenues of fundamental concern have faced troubling developments recently, but their lack of imminence has tempered the urgency in selling pressure. A drop in yields predicated on the ECB’s stimulus upgrade has stalled as the market awaits the Targeted LTRO programs to be adopted – first one is in September. Meanwhile, developments like the Banco Espirito Santo crisis are not making the sovereign contagion jump. Hesitation may hinge on the girth of the capital inflow in the Eurozone. And thereby, ‘risk’ is central…until September.
Yen Crosses Dramatically Diverge from Equities
As mentioned above, the most pronounced absence in the market-wide shift in sentiment this past session was a drop in Yen crosses. These low-yielding carry traders were driven between 25 and 45 percent higher in a 14-month period to through the end of 2013 on the combination of a rapid stimulus influx and the backdrop for yield appetite. Yet, throughout 2014 – as more traditional assets were still rising – these pairs consolidated. Showing this bias, these pairs should be particularly sensitive to risk aversion. Their nonconformity can disarm the bear call.
Australian Dollar Thursday’s Worst Performer as Data Drops
Is the Australian dollar stepping back into its ‘carry currency’ role? As other high-return assets fell this past session, the Aussie dollar stood out as the worst performer of the majors. Yet, as wide as the decline was, its intensity was tame. From sovereign yields, there was little fade in its carry appeal, but there was activity on the economic docket that may speak to curbed hopes for the timing of the eventual RBA hike. Import and factory-level inflation figures for 2Q both cooled. Alternatively, manufacturing activity in Australia and China did reportedly pick up.
British Pound Traders Have Not Forgotten Rate Speculation
GBPUSD has dropped 11 out of the past 12 trading days. This is in part a dollar performance, but the sterling is doing more than its part in the steady retreat. The balance of rate speculation is clearly shifting. That said, the swaps, Libor rates and 2-year Gilt yields are all maintaining their buoyancy. While not pricing in hawkish perfection, there is still an advantage. Yet any further hits like in today’s PMI could carve it away.
Emerging Markets Suffer Second Worst Stumble in 4 Months
The MSCI Emerging Market ETF gapped lower Thursday on the heaviest volume since April. It looks like bears are launching into a new trend. However, this initial move draws looks similar to same kind of formation on April 15 or even July 17 – where a sharp decline quickly stalled and led the market eventually higher. Conviction matters here. Meanwhile, most EM currencies dropped, but the Ruble only slipped 0.2 percent.
Gold Plays the Anti-Dollar Role Over Safe Haven
With the sharp rise in volatility this past session, gold bugs had the opportunity to leverage the metal’s on-again-off-again position as a safe haven. Yet, that didn’t seem to take. The precious metal instead dropped the most in two weeks (1.1 percent) on elevated volume. It seems the US dollar’s strength and the stability of the broader FX market acted as a cantilever to the bulls’ hopes.**Bring the economic calendar to your charts with the DailyFX News App.
ECONOMIC DATA
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SUPPORT AND RESISTANCE LEVELS
To see updated SUPPORT AND RESISTANCE LEVELS for the Majors, visit Technical Analysis Portal
To see updated PIVOT POINT LEVELS for the Majors and Crosses, visit our Pivot Point Table
CLASSIC SUPPORT AND RESISTANCE
INTRA-DAY PROBABILITY BANDS 18:00 GMT
v
— Written by: John Kicklighter, Chief Strategist for DailyFX.com
To contact John, email jkicklighter@dailyfx.com. Follow me on twitter at http://www.twitter.com/JohnKicklighter
Sign up for John’s email distribution list, here.
The information contained herein is derived from sources we believe to be reliable, but of which we have not independently verified. Forex Capital Markets, L.L.C.® assumes no responsibility for errors, inaccuracies or omissions in these materials, nor shall it be liable for damages arising out of any person’s reliance upon this information. Forex Capital Markets, L.L.C.® does not warrant the accuracy or completeness of the information, text, graphics, links or other items contained within these materials. Forex Capital Markets, L.L.C.® shall not be liable for any special, indirect, incidental, or consequential damages, including without limitation losses, lost revenues, or lost profits that may result from these materials. Opinions and estimates constitute our judgment and are subject to change without notice. Past performance is not indicative of future results.
Talking Points:
-Why Pivots
-Where to Spot Entries
-Setting Stops & Limits
If you’re a new trader, Pivot Points could very well be your best friend as far as identifying levels to develop a bias, place stops, and identify potential profit targets for your trade. Pivot points are not a new tool and have in fact been a go-to for traders that traded in the pits for decades. The simple argument goes as such: Price will often move relative to a prior extreme and, unless an outside force causes the price to do so, price should stop near a relation to prior extremes.
If you are brand new to pivots, think on this question. How much more difficult would it have been to learn to drive if there were no street signs or traffic lights? An odd question to be sure, but the comparison to pivots will become quite clear.
Pivots provide the same guidance to traders as traffic lights to do drivers. Without them, driving is a mess and sometimes even with them, driving is a mess, but you’d rather have them than go without. Pivots help you to see when to go, yield and stop on your preferred currency pair while providing clear points to manage risk.
If you’re uncomfortable with the concept of Trade Management so that you don’t let one trade sidetrack your trading goals you can register for our FREE online course here.
Where to Spot Entries
Sticking with the traffic light entries, you first need to understand if the market is ranging or not. Pivots also, make this quite simple. If you take a look at past pivots by adjusting the ‘Show Mode’ from Today to Historical, you can look at the direction of Pivots to determine a trend in range by finding out if Pivots themselves are making higher lows or lower highs denoting a trend or are moving sideways representing a range.
Learn Forex: Past Pivots Show a Clear Uptrend
Presented by FXCM’s Marketscope Charts
If the market is trending, then you ideally want to look for two points on the chart to enter the trade based on the trend. In an uptrend, you’d like to look for price near the pivot point or the 1st support level. In a downtrend, you’re best looking for price near the pivot or the 1st resistance level. If you believe the market is in a downtrend and the 2nd Resistance level is hit, then you may want to re-think your assessment or if the trend is still in play, a deep correction could be developing.
Learn Forex: Key Pivot Levels (Weekly Example Shown)
Presented by FXCM’s Marketscope Charts
You’ll notice above that the market began around the Pivot Point for the first few days of the week before breaking out of its Opening Range. Once the opening range broke, a strong move through the 1st resistance level and into the 2nd developed. The breakout from the pivot and opening range was a helpful development to see that the market could not develop downside momentum so that when the buying pressure presented itself, the market quickly traveled to the R2.
Learn Forex: Opportunity to ‘Buy the Dip’
Presented by FXCM’s Marketscope Charts
Pivots points are built around price action and price extremes. In the chart above, you can see that once the higher-low is established, you’re able to use key spots on the chart to identify entries. A weak break below the Pivot that doesn’t touch the 1st support level in an uptrend (1st resistance in a downtrend) or a Pivot touch that is rejected only to return in the direction of the trend are key entries.
Setting Stops & Limits
You have two options for stops and losses based on how aggressive you are. My preference is to set a limit at the 2nd support or resistance level in favor of the trend. Therefore, in an uptrend, I’ll set my limit at the R2 level and at the S2 level in a downtrend. A more conservative trader may prefer to set limits at the respective R2 or S1 in favor of the trend thereby capturing a quick move in favor of the trend or an extended move within a range.
When setting stops, you have a few options as well. Because I favor the swing trade and usually will sit in a trade for a few weeks, my preference is to set a stop below the S1 in an uptrend or the R1 in a downtrend. These levels are often untouched in a strong trend and if you think you’re in a downtrend and the R2 is tagged, then there is a higher probability that the trend is reversing. If you don’t set stops, stops are recommended, a trade goes against you to the 2nd support or resistance level, then it is often worth it to exit the trade because a shift may be underway.
Learn Forex: R2 Touch Precedes Trend Reversal
Presented by FXCM’s Marketscope Charts
Suggested Reading: How Pivot Points Help Keep Your Head Straight When Volatility Is High
Understand the Focal Point of Price in Forex through the Pivot Range
Happy Trading!
—Written by Tyler Yell, Trading Instructor
To contact Tyler, email tyell@dailyfx.com
To be added to Tyler’s e-mail distribution list, please click here
Tyler is available on Twitter @ForexYell
Talking Points:
Can’t access the Dow Jones FXCM US Dollar Index? Try the USD basket on Mirror Trader. **
US DOLLAR TECHNICAL ANALYSIS – Prices broke above yet another layer of resistance after reversing upward as expected having put in a Bullish Engulfing candle pattern. Near-term resistance is at 10560, the 50% Fibonacci retracement. A daily close above that exposes 61.8% level at 10606. Alternatively, a turn back below the May 28 high at 10531 opens clears the way for a test of the 38.2% Fib at 10513.
Daily Chart – Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
S&P 500 TECHNICAL ANALYSIS – Prices turned lower as expected after putting in a bearish Evening Star candlestick pattern bolstered by negative RSI divergence. Sellers now aim to challenge the 38.2% Fibonacci retracement at 1921.80, with a break below that on a daily closing basis exposing the 50% level at 1900.30. Alternatively, a reversal above the 23.6% Fib at 1948.40 clears the way for a challenge of the 14.6% retracement at 1964.80.
Daily Chart – Created Using FXCM Marketscope 2.0
GOLD TECHNICAL ANALYSIS – Prices are drifting cautiously lower having topped below $1350/oz three weeks ago. Near-term support is in the 1281.38-87.13 area, marked by a falling trend line set from late June and the 38.2% Fibonacci expansion. A break below that on a daily closing basis exposes the 50% level at 1269.22. Alternatively, a reversal above the 23.6% Fib at 1309.20 eyes the 14.6% expansion at 1322.94.
Daily Chart – Created Using FXCM Marketscope 2.0
CRUDE OIL TECHNICAL ANALYSIS – Prices continue to race downward, with sellers now aiming to challenge the 76.4% Fibonacci expansion at 97.30. A break below that on a daily closing basis exposes a rising trend line set from June 2012, now at 96.28. Alternatively, a reversal above the 61.8% level at 98.56 aims for the 50% Fib at 99.58.
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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Contact and follow Ilya on Twitter: @IlyaSpivak
The Canadian dollar pared losses against its US peer after a report showed that Canada’s economic growth in May was faster than expected, though USD/CAD reached the highest level in more than a month earlier. The loonie gained versus the euro and was flat against the Japanese yen.
Canada’s gross domestic product grew 0.4 percent in May, exceeding the consensus forecast of 0.3 percent. This was a fifth consecutive monthly expansion.
Most analysts believe that the loonie’s bounce against the greenback is nothing more than a normal market fluctuation during an established trend, not something trend-changing. Indeed, USD/CAD was slowly rising during July, and the pace of decline accelerated this week. The upward trend for the currency pair is likely to persist unless tomorrow’s US non-farm payrolls come out far worse than expected.
USD/CAD traded not far from its opening level of 1.0901 as of 21:38 GMT today after rising to 1.0929 intraday — the strongest price since June 9. EUR/CAD was down from 1.4607 to 1.4598. CAD/JPY was near the opening rate of 94.27.
If you have any questions, comments or opinions regarding the Canadian Dollar,
feel free to post them using the commentary form below.
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Talking Points:
The US Dollar appears to have forced a major turning point against the Japanese Yen after breaking above resistance limiting the upside since January. Near-term resistance is at 103.03, the 100%Fibonacci expansion, with a daily close above that exposing the 123.6% level at 103.50. Alternatively, a turn below resistance-turned-support marked by the April 22 high at 102.71 clears the way for a challenge of the broken trend line, now at 102.43.
Prices are wedged too closely between near-term support and resistance levels to justify entering a trade on the long or short side from a risk/reward perspective. We will continue to stand aside for now, waiting for an actionable opportunity to present itself.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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Talking Points:
The Dow Jones FXCM US Dollar Index broke above yet another layer of resistance after reversing upward as expected having put in a Bullish Engulfing candle pattern. Near-term resistance is at 10560, the 50% Fibonacci retracement. A daily close above that exposes 61.8% level at 10606. Alternatively, a turn back below the May 28 high at 10531 opens clears the way for a test of the 38.2% Fib at 10513.
We remain broadly bullish on the US Dollar against its leading counterparts in line with our long-term fundamental outlook. As such, we remain long via theMirror Trader US Dollar currency basket.
Daily Chart – Created Using FXCM Marketscope 2.0
** The Dow Jones FXCM US Dollar Index and the Mirror Trader USD basket are not the same product.
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
The Euro fell as expected against the US Dollar after prices put in a bearish Evening Star candlestick pattern. Sellers are now eyeing support at 1.3366, the November 8 2013 close. A break below this boundary on a daily closing basis initially exposes the 76.4% Fibonacci expansion at 1.3324. Alternatively, a move back above the 61.8% Fib at 1.3396 opens the door for a test of the 50% expansion at 1.3454.
We sold EURUSD at 1.3644 in line with our long-term fundamental outlook and have since booked profit on half of the position. The stop-loss on our remaining exposure has been moved to the breakeven level.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
The US Dollar continues to push higher against the Swiss Franc, with prices overcoming June’s swing high to hit the highest level in close to six months. A daily close above resistance at 0.9110, the 76.4% Fibonacci expansion, exposes the 100% level at 0.9189. Alternatively, a turn below the 61.8% Fib at 0.9061 opens the door for a test of the 50% expansion at 0.9022.
We are tactically opting to stand aside for now because we already hold long USD exposure against the Euro and the Canadian Dollar. As such, we think it best not to over-commit as heavy-duty US event risk continues cross the wires through the week-end.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
To receive Ilya’s analysis directly via email, please SIGN UP HERE
Talking Points:
The British Pound renewed its push lower against the US Dollar having reversed downward as expected after putting in a Hanging Man candle with negative RSI divergence. A daily close below support 1.6831, the 38.2% Fibonacci retracement, exposes the 50% level at 1.6721.Alternatively, a bounce above support-turned-resistance ata rising trend line set from early February (now at 1.6919) clears the way for a challenge of the 23.6% Fib at 1.6969.
While entering a short position here is tempting, we will tactically opt to stand aside. We already hold long USD exposure against the Euro and the Canadian Dollar. As such, we think it best not to over-commit as heavy-duty US event riskcontinues cross the wires through the week-end.
Add these technical levels directly to your charts with our Support/Resistance Wizard app!
Daily Chart – Created Using FXCM Marketscope 2.0
— Written by Ilya Spivak, Currency Strategist for DailyFX.com
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Top Forex analysts with immense experience in Forex trading, dozens of comprehensive analytical reviews daily, various subjects and types of analysis. Moreover, economic calendar by InstaForex Company can help you be in the middle of informational flow.
Exclusive newsline by InstaForex is your reliable assistant in the Forex world.
Top Forex analysts with immense experience in Forex trading, dozens of comprehensive analytical reviews daily, various subjects and types of analysis. Moreover, economic calendar by InstaForex Company can help you be in the middle of informational flow.
Exclusive newsline by InstaForex is your reliable assistant in the Forex world.
Top Forex analysts with immense experience in Forex trading, dozens of comprehensive analytical reviews daily, various subjects and types of analysis. Moreover, economic calendar by InstaForex Company can help you be in the middle of informational flow.
Overview:
USD/JPY is excpected to consolidate with a bullish bias after hitting a three-week high at 103.15 on Wednesday. It is underpinned by the positive dollar sentiment (ICE spot dollar index last 81.42 versus 81.21 early Wednesday) on stronger-than-expected 4.0% annual growth in U.S. 2Q GDP (versus forecast +3.0%), higher U.S. Treasury yields (two-year yield rose as high as 0.591%–highest since May 2011). USD/JPY is also supported by the demand from Japanese importers. But USD sentiment is dented by the weaker-than-expected 218,000 increase in ADP U.S. July private sector jobs (versus forecast +238,000). USD/JPY gains are also tempered by Japan’s export sales. Mixed reaction to Federal Open Market Committee’s long-awaited decision to cut its monthly bond purchases by another $10 billion to $25 billion overnight as the Federal Reserve made no change to its expectation that policy would stay accommodative for a “considerable time” after the program ends. The Fed took note of improvement in the labor market and that inflation has moved closer to the central bank’s longer-run objective. However, policymakers said a range of the labor market indicators suggests that significant underutilization of labor resources is still valid, and the recovery in the housing sector remains slow. Overnight, the VIX fear gauge rose 0.38% to 13.33, S&P 500 was up 0.01% at 1,970.07, while DJIA slipped 0.19% to 16,880.36.
Technical comment:
The daily chart is positive-biased as the five-day moving average is above 15-day MA and is advancing, MACD and stochastics are bullish, although the latter is in the overbought zone.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 103.15 and the second target at 103.40. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 102.40. A break of this target would push the pair further downwards and one may expect the second target at 102.15. The pivot point is at 102.55.
Resistance levels:
103.15
103.40
103.75
Support levels:
102.40
102.15
101.85
| ||
Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
Overview:
USD/CHF is expected to consolidate with a bullish bias after hitting a six-month high at 0.9110 on Wednesday. CHF sentiment is dented by the lower-than-expected Switzerland July KOF economic indicator of 98.1 (versus 100.6 in the forecast). USD/CHF is also supported by the positive dollar sentiment and dovish Swiss National Bank’s monetary policy and franc sales on buoyant EUR/CHF cross. But USD/CHF gains are tempered by the franc demand on buoyant CHF/JPY cross. The daily chart is positive-biased as MACD is bullish, stochastics is staying elevated in the overbought zone; five and 15-day moving averages are advancing.
Trading recommendations:
The pair is trading above its pivot point. It is likely to trade in a higher range as far as it remains above its pivot point. As long as the price is keeping above its pivot point, a long position is recommended with the first target at 0.9130 and the second target at 0.9155. In an alternative scenario, if the price moves below its pivot points, short positions are recommended with the first target at 0.9050. A break of this target would push the pair further downwards and one may expect the second target at 0.9025. The pivot point is at 0.9075.
Resistance levels:
0.9130
0.9155
0.9175
Support levels:
0.9050
0.9025
0.9
| ||
Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
Overview:
NZD/USD is expected to consolidate with a bearish bias after hitting a near-two-month low at 0.8461 on Wednesday. It is undermined by the positive dollar sentiment, weak dairy prices and ongoing impact from Reserve Bank of New Zealand Gov. Wheeler’s comment last week that the Kiwi’s strength is “unjustified and unsustainable” as well as the by signal of a pause in the RBNZ’s rate-tightening cycle. But NZD/USD losses are tempered by the NZD-USD interest differential and Kiwi demand on retreating AUD/NZD cross and on buoyant NZD/JPY cross. The daily chart is negative-biased as MACD is bearish, stochastics is staying suppressed in the oversold zone, five and 15-day moving averages are declining.
Trading recommendations:
The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below its pivot point. Short position is recommended with the first target at 0.8430. A break of this target will move the pair further downwards to 0.84. The pivot point stands at 0.8520. In case the price moves in the opposite direction and bounces back from the support level, then it will moves above its pivot point. It is likely to move further to the upside. In that scenario, a long position is recommended with the first target at 0.8585 and the second target at 0.8620.
Resistance levels:
0.8585
0.8620
0.8650
Support levels:
0.8430
0.84
0.8375
| ||
Performed by Ahsan Aslam, Analytical expert InstaForex Group © 2007-2014 |
- Dollar likely to continue to fresh highs on major shifts in forex sentiment
- Japanese Yen, Euro, and Sterling look at particular risk of losses
- Keep an eye at Commodity Bloc at these levels
Receive the Weekly Speculative Sentiment Index report via PDF via David’s e-mail distribution list.
View individual currency sections:
EURUSD – Euro Positions at Record, Further Losses Seem Likely
GBPUSD – British Pound Breakdown Confirmed, Look for Losses
USDJPY – Key Factors Favor a Much Larger USDJPY Breakout
AUDUSD – Australian Dollar Poised for Further Losses
SPX500 – Need to See a Larger Move to Confirm S&P 500 Top
NZDUSD – New Zealand Dollar at Clear Risk of Further Losses
Weekly Summary of Forex Trader Sentiment and Changes in Positioning
Record positions in the US Dollar warn that we’re at a substantial turning point, but until this changes we’ll remain in favor of buying USD at these levels.
See specific US Dollar forecasts in the sections above, and sign up for future e-mail updates via this author’s e-mail distribution list.
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— Written by David Rodriguez, Quantitative Strategist for DailyFX.com
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