InvestMacro Forex News

Source: ForexYard

The USD/JPY pair has been range-trading for the past ten weeks, shifting between the 81.00 and the 84.50 levels. The pair recently reached a significant support level yet failed to cross it. As a result, the USD/JPY began climbing upwards, and still looks to reach higher. As several technical indicators show, the pair has potential to reach as high as the 84.50 level.

• The chart below is the USD/JPY 1-day chart by ForexYard.
• It is clearly seen that the pair’s trading was mainly characterized by ups and downs lately, without marking any real trend.
• The pair saw several failed attempts to breach through the 81.50 support level. As a result, it bounced back up and is currently trading near the 82.50 level.
• A bullish cross on the Slow Stochastic indicates that the bullish momentum has more room to go.
• The RSI has recently crossed the 30-level and is still pointing upwards. This indicates that the bullish move could proceed.
• In addition, the MACD looks to complete a bullish cross soon. If the bullish cross will indeed takes place, it could be used as further evidence that the upward movement will continue.
• The pair’s next resistance levels are located at the: 82.85, 83.50, 84.00 and the 84.50 level.
• The pair’s next support levels are at: 82.30, 81.50 and 80.90.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The USD/JPY pair saw a very strong bullish trend in February, reaching as high as the 83.96 level. However, once the pair climbed towards almost 84.00, a sudden correction took place which was only stopped at the 81.60 level. Currently, the pair is once again testing the significant support level, if it falls below it, another sharp depreciation may take place.

• The chart below is the USD/JPY 4-hour chart by ForexYard.
• By February 4th the pair saw a strong bullish move, which was sharply reversed on February 16th. During the bearish correction, the pair has erased almost all of its gains.
• The Slow Stochastic has lately completed a bearish cross, signaling that another downward movement could take place soon.
• The RSI has recently climbed above the 30-line, just to fall below it again shortly after. This indicates that the bullish momentum was very poor, and that another bearish session is likely to take place.
• There is a very strong support level placed at 81.60. If the pair will fall below the support level, it is likely to drop towards the 81.30 level, followed by the 81.10 level.
• The next resistance levels are placed at the 82.00, 82.30 and 82.55 levels.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Following 10-weeks of consolidation, the USD/JPY has broken out of a triangle pattern.

Typically triangle patterns result in a continuation of the long term trend. However, as the daily chart shows, the USD/JPY has breached above the upper leg of the triangle.

An estimate of the price move from the triangle pattern calls for a 3.5 yen appreciation from the breakout price. A more conservative target may be the September high of 86.00. Along the way, resistance will be found at 83.70 and the top of the triangle pattern at 84.50.

In the direction of the long term trend, support is located at the declining upper leg of the triangle which comes in today at 82.80. 81.80 may come into play should the price retrace back into the triangle. Further support is the lower leg of the triangle at 81.40 and the January low at 80.90.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Today’s data releases from the UK and the US may help higher yielding assets receive a bid following yesterday’s coordinated central bank move and a reduced Chinese reserve requirement.

This morning we’ll get UK manufacturing PMI which is forecasted to fall to 47.1 from 47.4. Sterling has been bid the past 3-days versus the USD and the GBP/USD may find initial resistance at yesterday’s high of 1.5780, followed by the November 18th high of 1.5890. Support comes in at the November low of 1.5420.

Building on yesterday’s positive ADP jobs report and pending home sales the strong US economic data looks to continue into today and tomorrow. ISM manufacturing PMI will likely show the momentum from Q3 is carrying over in to Q4 which could translate into stronger GDP and finally put to bed the idea of a double dip US recession. Stronger data will likely keep the USD on its back foot and the USD/JPY could test yesterday’s low of 77.30 with scope for the November 18th low of 76.55.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Month end fixing may end up being USD positive as banks’ funding costs for USDs continue to rise. Trading in Asia was off to a rocky start with the Heng Seng down 1.80%. The economic calendar is crowded today but investors will continue to focus on the meeting of European finance ministers.

Bank funding costs are rising as lenders scramble to secure USD funding. Today’s end of month trading may increase demand for USDs, especially in Japan.

The meeting of European finance ministers continues into its second day and an article in The Telegraph highlights comments by German Finance Minister Wolfgang Schauble saying European finance ministers have not agreed on the terms of the EFSF.

This afternoon in the North American session we will have the ADP jobs report and US pending home sales, along with Canadian GDP data.

The USD could continue to firm in light of a failure of the European finance ministers to come away with concrete steps to shore up Europe’s finances. The EUR/USD has support at the October low of 1.3145. A break here and the pair could move to 1.0350, the 61% Fibonacci retracement of the June 2010 to May 2011 bullish trend. Resistance is found at yesterday’s high of 1.3440 and the November 18th high of 1.3610. The CAD/USD found support at 1.2060 and could now test the weekly high of 1.0520.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The Swedish krona continues to weaken as the USD/SEK breaks higher above its 2-year downtrend.

Barring any surprises today the USD/SEK looks poised to close on a weekly basis above the downward sloping trend line from February 2009. The pair will encounter initial resistance at the September high of 6.9915, followed by the November 2010 high of 7.0700. A break here will open the door to the 2010 August and June highs of 7.5100 and 8.1350. The broken trend line may prove to be supportive at 6.6860 followed by the October low of 6.3075.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

Today’s economic calendar will be highlighted by the release of the FOMC meeting minutes which are likely to show the Fed stands ready to act should inflation expectations continue to decline.

Investors remain firmly focused on events in Europe though the release of the meeting minutes from the past FOMC meeting could draw some attention from the markets. The Fed will likely address the improved US economic data but also keep the door open to additional monetary policy easing should the Fed see the need. With the doves firmly in control of the Fed and stagnant US unemployment, we continue to expect the Fed to initiate QE3.

The USD continues to move higher this morning versus the majors with the lone exception being the EUR/USD which has support at the base of the recent consolidation at 1.3430 and resistance at the October 18th high of 1.3555. Cable is trading near yesterday’s low of 1.5610 and a break here could open the door to the September low of 1.5325.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The USD is up prior to the North American trading session despite a failure of the US super committee to come to an agreement. Pressure remains in the euro zone as Moody’s said France’s credit rating could be downgraded. With the recent USD strength some of the major currencies are now standing at significant technical levels.

It is expected today that the US super committee will fail in its mission to agree on budget cuts and potential tax increases. The failure does not come as a surprise to most market participants given the inability of Congress to work together on almost anything these days. However, it does add an additional level of uncertainty in the already shaky financial markets. Despite the negative news the USD is bid to begin this week’s FX trading as market players focus on events in Europe.

This morning Moody’s warned that France’s Aaa credit rating could be reduced due to elevated borrowing costs and a poor growth outlook for the French economy. One month ago Moody’s warned it could put France on a negative outlook within the next three months. This puts expectations of additional rating action on course for January.

Risk sentiment continues to turn lower due to the European debt crisis with the German DAX down by 2.60%. Many of the major currency pairs are standing close to significant support levels. The GBP/USD is testing the 1.5630 support from the October 18th low. A break here could spur further declines towards the October low of 1.5270. The AUD/USD has retraced 61% of its October move and could fall back to the October 4th low at 0.9385. The NZD/USD has broken its long term rising trend line from May 2010.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The USD continues to strengthen and shows little signs of slowing in this risk off environment.

EUR/USD

There is a bullish wedge pattern that has formed on the EUR/USD daily chart. The falling resistance line is off of the October high and the support line falls off the November 1st low. Resistance is found at 1.3615. A break here and the EUR/USD could test the November highs near 1.3850. Traders may be eyeing the October low of 1.3145 followed by a deeper move to the 2011 low of 1.2875.

GBP/USD

After breaking lower from the late October-mid November consolidation pattern the GBP/USD rose back to the previous support line at 1.5850 only to turn lower once again. This is a textbook retracement to a previously known support that has now turned into resistance. Support may be found at the October 18th low of 1.5630 followed by the October low of 1.5270. Resistance comes in at the top of the previous consolidation pattern at 1.6075.

USD/JPY

The slow decline of the USD/JPY back to its all-time low at 79.60 continues while the charts show very little support to prevent the move. Any attempt to bid the pair higher may encounter selling pressure at the November 15th high of 77.50 followed by the long term downtrend from the June 2007 high which comes in at 79.10.

USD/CHF

The rally from the late October low continues to gain steam as the pair approaches the October high of 0.9310. Both weekly and monthly stochastics continue to move higher. A break of 0.9310 will expose the 20-month moving average at 0.9450 followed by the February high of 0.9770. Support is off of the November 3rd low of 0.8760 which coincides with the 100-day moving average. While perhaps a bit extreme the USD/CHF may eventually rise to the falling trend line off of the 2003, 2008, and 2010 highs which comes in at 1.1200.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

Source: ForexYard

The JPY is moving early this morning following a bout of USD weakness. With the USD/JPY breaking below the 76.80 support level there is little support remaining on the charts to stand in the way of the pair’s all-time low.

Most of the majors have been consolidating in the latter half of the week but the USD is weaker across the board to begin the London trading session. There is little data on the economic calendar to affect the majors with the exception of CPI numbers from Canada later this afternoon.

The USD/JPY has been on the move early this morning, breaking through support at 76.80. The pair has retraced more than 61% of the most recent Japanese government intervention. Expectations are for the USD/JPY to continue to decline towards its all-time low at 75.55. Resistance will be found back at 76.80 followed by the long term downtrend from 2007 which comes in today at 79.15.

Read more forex trading news on our forex blog.

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.